AI Corporation issued 90,210 shares of $20 par value, cumulative, 8% preferred stock on January 1, 2007, for$2,527,500. In December 2009, AI declared its first dividend of $580,600.
Prepare AI's journal entry to record the issuance of the preferred stock.
If the preferred stock is not cumulative, how much of the $580,600 would be paid to common stockholders?
If the preferred stock is cumulative, how much of the $580,600 would be paid to common stockholders?