The Shareholders' Equity Section of Winters Company Contained the Following

question 15

Essay

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. If Winters uses a separate dividend account for each type of stock, which of the following would be included in the journal entry to record the declaration of the 12% Preferred stock dividend?
a. a debit to 12% Preferred Cash Dividend for $180.
b. a debit to Dividend Expense for $180.
c. a debit to Dividends Payable for $180.
d. a debit to Cash for $180.

---

Definitions:

Black Churchgoers

Individuals who are part of the African American community who regularly attend church services.

Social Services

Public services provided by a government, NGOs, or other organizations to help improve welfare and living conditions.

Freedmen's Bank

Originally known as the Freedman's Saving and Trust Company, this was a private corporation chartered by the U.S. government to encourage and guide the economic development of newly freed African Americans after the Civil War.

Panic of 1873

A financial crisis that triggered a severe international economic depression in both Europe and the United States, lasting from 1873 to 1879.