3. Al-Busthan corporation has a year end of 31 December. The company has in issue 400,000 Ordinary shares and 15,000, 6% cumulative redeemable preference shares of OMR 10 each. On 1 July 2020, the directors declared an interim dividend of OMR20,000. On 31 December 2020, the directors proposed a final dividend of OMR 25,000. On 1 Feb 2021, at the annual general meeting they proposed final dividend for 2020 which was approved. All the dividends whether equity or preference were paid on 1 Mar 2021. Note that there are no dividend in arrears with regards to preferred stock.

3. Al-Busthan corporation has a year end of 31 December. The company has in issue 400,000 Ordinary shares and 15,000, 6% cumulative redeemable preference shares of OMR 10 each. On 1 July 2020, the directors declared an interim dividend of OMR20,000. On 31 December 2020, the directors proposed a final dividend of OMR 25,000. On 1 Feb 2021, at the annual general meeting they proposed final dividend for 2020 which was approved. All the dividends whether equity or preference were paid on 1 Mar 2021. Note that there are no dividend in arrears with regards to preferred stock.

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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