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26,000 shares of noncumulative 10% preferred stock with a $10 par value. • 156,000 shares of common stock with a $2 par value.

26,000 shares of noncumulative 10% preferred stock with a $10 par value. • 156,000 shares of common stock with a $2 par value.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company's outstanding stock consists of the following: • 26,000 shares of noncumulative 10% preferred stock with a $10 par value. • 156,000 shares of common stock with a $2 par value. During its first three years of operation, the company declared and paid the following total cash dividends. Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 1 Year 2 Year 3 Total: Total Cash Dividend Paid $ $ Paid to Preferred $ 18,600 $ 36,600 $ 60,600 55,200 Paid to Common 18.600 $ 18,600 $ 36,600 36,600 60,600 115,800 $ $ 0 0 0 Dividends in Arrears at year-end $
Transcribed Image Text:A company's outstanding stock consists of the following: • 26,000 shares of noncumulative 10% preferred stock with a $10 par value. • 156,000 shares of common stock with a $2 par value. During its first three years of operation, the company declared and paid the following total cash dividends. Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 1 Year 2 Year 3 Total: Total Cash Dividend Paid $ $ Paid to Preferred $ 18,600 $ 36,600 $ 60,600 55,200 Paid to Common 18.600 $ 18,600 $ 36,600 36,600 60,600 115,800 $ $ 0 0 0 Dividends in Arrears at year-end $
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