During 2012, Doxey Corporation had the following transacti
Question and Solution
During 2012, Doxey Corporation had the following transactions and related events: Jan. 15 Issued 6,500 shares of common stock at par ($16 per share), bringing the total number of shares outstanding to 121,300. Feb. 6 Declared a 50-cent-per-share dividend on common stock for stockholders of record on March 6. Mar. 6 Date of record. 8 Pedro Garcia, a prominent banker, purchased 20,000 shares of Doxey common stock from the company for $346,000. Apr. 6 Paid dividends declared on February 6. June 19 Reacquired 800 shares of common stock as treasury stock at a total cost of $9,350. Sept. 6 Declared dividends of 55 cents per share to be paid to common stockholders of record on October 15, 2012. Oct. 6 The Dow Jones Industrial Average plummeted 300 points, and Doxey’s stock price fell $3 per share. 15 Date of record. Nov. 16 Paid dividends declared on September 6. Dec. 15 Declared and paid a 6% cash dividend on 18,000 outstanding shares of preferred stock (par value $32). Given this information: 1. Prepare the journal entries for these transactions. 2. What is the total amount of dividends paid to common and preferred stockholders during 2012?