Jameson Company Earned Net Income of $75,000 During the Year

question 63

Essay

Jameson Company earned net income of $75,000 during the year ended December 31,2018.On December 20,Jameson declared the annual cash dividend on its 8% noncumulative preferred stock (par value,$150,000)and a $0.50 per share cash dividend on its common stock (45,000 shares).Jameson then paid the dividends on January 10,2019.
Prepare the journal entries to record the declaration and the distribution of the dividends.Explanations are not required.

---

Definitions:

Pain Signals

Pain signals are neurological transmissions indicating harm or potential damage to the body, alerting the brain to discomfort or injury.

Sensory Adaptation

The process by which our senses adjust to different levels of stimulation, allowing us to notice changes in the environment more than constant stimuli.

Odour

A distinctive smell, especially an unpleasant one, perceived by the olfactory nerve system.

Sensory Adaptation

The procedure through which receptors sensing the environment become less alert to unchanged stimuli through time.