Answer:
Preferred shareholder (7,500*$100)*7% $52,500
Common shareholder (70,000×$2) <u>$140,000</u>
Total dividend <u>$192,500</u>
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Date General Journal Debit Credit
10 June Dividend $192,500
To dividend payable $192,500
(To record dividends payable)
20 June No entry required
01 July Dividend payable $192,500
To cash $192,500
(To record dividend payment)
31 Dec Retained earning $192,500
To dividends $192,500
(To close dividend account)
