Problem
Identifying and Analyzing Financial Statement Effects of Cash Dividends Freid Corp. has outstanding 8,000 shares of $50 par value, 6% preferred stock, and 44,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares and pays the regular $3 per share cash dividend on preferred stock and a $2.2 per share cash dividend on common stock.
• Using the financial statement effects template, illustrate the effects of these two dividend payments. Use a negative sign with your answers, when appropriate. Put it into financial statements.