ignemo corp had 1000 shares of $5 par value common stock and 500 shares of $100 par value 6% non cumulative preferred stock outstanding they declared and paid dividends of 7000.
OK so you
debit cash 7000
credit dividends payable 7000 and then debit it 7000 once you pay it
you debit 4000 dividends common
and credit 3000 dividends preferred
if that's right and correct me if I'm wrong, how do you get the 3000 and the 4000?