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nikdorinn [45]
3 years ago
10

Mocha Company earned net income of $ 105,000 during the year ended December ​31, 2018. On December ​15, Mocha declared the annua

l cash dividend on its 2​% preferred stock​ (par value, $ 125,000​) and a ​$0.25 per share cash dividend on its common stock (62,000 ​shares). Mocha then paid the dividends on January ​4, 2019.
Journalize for Mocha the entry declaring the cash dividends on December 15, 2018.
Business
1 answer:
lapo4ka [179]3 years ago
5 0

Answer:

The answer is given below;

Explanation:

Retained Earnings   (125,000*2%) Dr.$2,500

Dividend payable                                            Cr.$2,500

Retained Earnings  (62,000*.25)  Dr.$15,500

Dividend Payable                                         Cr.$15,500

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