A) Distribution of Dividends between preferred and common shareholders The Corporation has the following outstanding shares as of December 31, 2019: 10,000 Preferred Shares, 8%, $20 par value; issued and outstanding 300,000 Common shares, $1 par value; issued and outstanding During 2017 and 2018 no dividends were declared or paid. During 2019 the Board of Directors declared a dividend (Cash Dividend) of $54,000. INSTRUCTIONS: 1. Calculate annual dividend limit for preferred shareholders: 2. Distribute the dividend declared by the Board of Directors to preferred shareholders and common shareholders. Total Full Dividend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .……$54,000 a) Preferred shares are cumulative: (Computation) 2017 2018 2019 Preferred Stockholders Common Stockholders Total b) Preferred Shares are NOT cumulative: (Calculations) 2017 2018 2019 Preferred Stockholders Common Stockholders Total
Accounting
A) Distribution of Dividends between preferred and common shareholders
The Corporation has the following outstanding shares as of December 31, 2019: 10,000
INSTRUCTIONS: 1. Calculate annual dividend limit for preferred shareholders:
2. Distribute the dividend declared by the Board of Directors to preferred shareholders and common shareholders.
Total Full Dividend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .……$54,000
a) Preferred shares are cumulative: (Computation) 2017 2018 2019
Preferred Stockholders
Common Stockholders
Total
b) Preferred Shares are NOT cumulative: (Calculations) 2017 2018 2019
Preferred Stockholders
Common Stockholders
Total
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