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E11-11 Recording Dividends and Preparing a Statement of Retained Eamings LO 11-2, LO 11-3 The...

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Accounting

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E11-11 Recording Dividends and Preparing a Statement of Retained Eamings LO 11-2, LO 11-3 The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $270,000 in the current year. It also declared and paid dividends on common stock in the amount of $1.30 per share. During the current year, Sneer had 1 milion common shares authorized 470,000 shares had been issued; and 253,000 shares were in treasury stock. The opening balance in Retained Earnings was $730,000 and Net Income for the current year was $230,000. Required: 1. Prepare jounal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. (If no entry is required for a transactionlevent, select "No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet nsaction General Journal a(1) Dividends 270,000 Dividends Payable 270,000 a2) Dividends Payable 270,000 270,000 b(1) Dividends Dividends Payable b2) Dividends Payable esc 888 A Fs 2 3 4

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