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A corporation was organized on January 1 and issued the following shares of stock: 1) 1,500 shares of $100 par value, 10% non-participating preferred...

A corporation was organized on January 1 and issued the following shares of stock:

1)    1,500 shares of $100 par value, 10% non-participating preferred stock.

2)    15,000 shares of $20 par value common stock.


All shares were issued and outstanding throughout the next three years. The corporation declared and paid a cash dividend in each of those years as follows:


           Year 1 - $10,000    Year 2 - $36,000    Year 3 - $60,000


Required:

 Calculate the dividends paid to each class of stock in each of those years assuming the preferred stock is NON-CUMULATIVE. Use the matrix format listed below. Be sure to show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.


Preferred Preferred dividends         Common


                 Dividend           dividends paid   carried forward              dividends paid

Year           declared            this year            to next year                  this year


1               $10,000


2              $36,000


3              $60,000







Calculate the dividends paid to each class of stock in each of those years assuming the preferred stock is CUMULATIVE. Use the matrix format listed below. Be sure to show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.


Preferred Preferred dividends         Common


                 Dividend           dividends paid   carried forward              dividends paid

Year           declared            this year            to next year                  this year


1               $10,000


2              $36,000


3              $60,000

Top Answer

preference common dividend declared divi paid divi C/f divi paid year1 10000 10000 0 0 year2 36000... View the full answer

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