Question Details

Darling's journal entry to record the issuance


Darling Corporation issued 200,000 shares of $20 par value, cumulative, 6% preferred stock on January 1, 2011, for $4,500,000. In December 2013, Darling declared its first dividend of $800,000.

Instructions
(a)	Prepare Darling's journal entry to record the issuance of the preferred stock.
(b)	If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders?
(c)	If the preferred stock is cumulative, how much of the $800,000 would be paid to common 	stockholders?




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