Unformatted text preview: During 20X6, the company returned to profitability, and paid $7,000,000 in dividends. (a) How much is the company's legal capital, additional paid-in capital, and total paid-in capital? (b) What accounting/disclosure is needed relating to the dividends in arrears on the preferred stock as of the end of 20X5 (i.e., should a liability be established)? (c) How would the 20X6 dividends be divided between common and preferred stock?...
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- Spring '11
- Accounting, cumulative preferred stock