Hodge Corporation issued 100,000 shares of $20 par value, cumulative, 6% preferred stock on Jan 1 2013, for $2,300,000. In Decmber 2015, Hodge declared its first dividend of $500,000.
1. Prepare the journal entry to record the issuance of the perferred stock.
2. If preferred stock is NOT cumulative, how much of the $500,000 would be paid to the COMMON stockholders.
3. If the preferred stock is cumulative, how of the $500,000 would be paid to COMMON stockholders.