How to allocated betweens common and preferred


On Jan 1, a company authorized common stock, $5 par for 200,000 shares & preferred stock $10 par, 7% for 50,000 shares. Record the transactions...

  • Issued 95,000 shares of common at $22 per share ?
  • Issued 18,000 shares of preferred at $13 per share?
  • Bought back 10,000 shares of common at $30 per share ?
  • Reissued 1,000 shares pf tresury stock at $27 per share ?

Declared cash dividends of $27,400 to be allocated betweens common and preferred (which preferred has current dividend preference is noncumulative) ? Paid dividends of 27,400 ?

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Accounting Basics: How to allocated betweens common and preferred
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