The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2018: 12% preferred stock, cumulative, $50 par (10,000 shares issued and outstanding) $500,000 Common stock, $10 par (100,000 shares issued and outstanding) 1,000,000 Additional paid-in capital: common 1,000,000 Retained earnings 3,750,000 Total stockholders' equity $6,250,000 Annapolis engaged in the following dividend transactions during 2018, 2019, and 2020: 2018: Dividends are in arrears for 2016 and 2017. On December 1, 2018, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a $1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2018. 2019: On December 1, 2019, the annual cash dividend on the preferred stock was declared. The dividend was paid on December 31, 2019. On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2020. The market price per share for the common stock on December 10, 2019, was $28. 2020: On January 25, 2020, the stock dividend declared on December 10, 2019, was issued. On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2021. In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2021. The market price per share for the common stock on December 1, 2020, was $23. No other stock transactions took place during 2018, 2019, or 2020. Required: Prepare the entries to record the dividend transactions for 2018, 2019, and 2020. (Do not record any transactions for 2021.)

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2018: 12% preferred stock, cumulative, $50 par (10,000 shares issued and outstanding) $500,000...

The Annapolis Corporation's stockholders' equity accounts have the following balances as of January 1, 2018:


12% preferred stock, cumulative, $50 par (10,000 shares issued and outstanding)	$500,000
Common stock, $10 par (100,000 shares issued and outstanding)	1,000,000
Additional paid-in capital: common	1,000,000
Retained earnings	3,750,000
Total stockholders' equity	$6,250,000

Annapolis engaged in the following dividend transactions during 2018, 2019, and 2020:

2018:	Dividends are in arrears for 2016 and 2017. On December 1, 2018, the annual cash dividend plus the dividends in arrears were declared on the preferred stock. In addition, a $1.50 per share dividend was declared on the common stock. The dividends were paid on December 31, 2018.
2019:	On December 1, 2019, the annual cash dividend on the preferred stock was declared. The dividend was paid on December 31, 2019.
	On December 10, a 30% stock dividend was declared on the common stock, distributable on January 25, 2020. The market price per share for the common stock on December 10, 2019, was $28.
2020:	On January 25, 2020, the stock dividend declared on December 10, 2019, was issued.
	On December 1, the annual cash dividend on the preferred stock was declared; it is payable on January 15, 2021.
	In addition, on December 1, a 10% stock dividend was declared on the common stock, distributable on January 20, 2021. The market price per share for the common stock on December 1, 2020, was $23.

No other stock transactions took place during 2018, 2019, or 2020.

Required:

Prepare the entries to record the dividend transactions for 2018, 2019, and 2020. (Do not record any transactions for 2021.)

Jun 09, 2022