Question

FV Company earned net income of $75,000 during the year ended December 31, 2012. On December 15, FV declared the annual cash dividend on its 5% preferred stock (par value, $115,000) and a $0.50 per share cash dividend on its common stock (55,000 shares). FV then paid the dividends on January 4, 2013. 54 Requirements 1. Journalize for FV: 2. Declaring the cash dividends on December 15, 2012. 3. Paying the cash dividends on January 4, 2013.

Answer 1

Answer:

• We have to put journal entry for the company for the details of transactions provided. Journal Entry Date Particulars Debit Amount ($) Credit Amount ($) a 15 Dec 12 Retained Earnings (Dividends) A/c 33,250 To Dividends..