Accounting for corporation

[florisecalash]

Hi everyone,
i have a question in accounting for corporation.
the problem of the year 2010:
preferred stock, 6%, $50 par ($ 600,000)
the transaction: Dec.15 Declared a 6% cash dividend on preferred stock payable January 15, 2011
my question: what is the entry for this transaction??
thanks in advance

 

[Triest123]

Hi everyone,
i have a question in accounting for corporation.
the problem of the year 2010:
preferred stock, 6%, $50 par ($ 600,000)
the transaction: Dec.15 Declared a 6% cash dividend on preferred stock payable January 15, 2011
my question: what is the entry for this transaction??
thanks in advance

Dr Proposed Dividend ($600,000 x 6%) $36,000
Cr Dividend Payable $36,000

 

[florisecalash]

thank you so much