ABC Company has 2000 shares of 10%, $100 par value, cumulative preferred stock and 50,000share so $1 par value common stock outstanding at December 31, 2017 and December 31, 2019.The board of directors declared and paid $18,000 dividends in 2018. In 2019, $25,000 of dividendswere declared and paid. What are the dividends received by the preferred and commonshareholders in 2019?O $20,000 preferred, $5,000 commonO $25,000 preferred, $0 commonO $22,000 preferred, $3,000 commonO $2,000 preferred, $23,000 common

Preference shareholders will be paid dividend first and balance amount will be paid to equity…

ABC Company has 2000 shares of 10%, $100 par value, cumulative preferred stock and 50,000 share so $1 par value common stock outstanding at December 31, 2017 and December 31, 2019. The board of directors declared and paid $18,000 dividends in 2018. In 2019, $25,000 of dividen were declared and paid. What are the dividends received by the preferred and common shareholders in 2019? O $20,000 preferred, $5,000 common O $25,000 preferred, $0 common $22,000 preferred, $3,000 common O $2,000 preferred, $23,000 common

ABC Company has 2000 shares of 10%, $100 par value, cumulative preferred stock and 50,000 share so $1 par value common stock outstanding at December 31, 2017 and December 31, 2019. The board of directors declared and paid $18,000 dividends in 2018. In 2019, $25,000 of dividen were declared and paid. What are the dividends received by the preferred and common shareholders in 2019? O $20,000 preferred, $5,000 common O $25,000 preferred, $0 common $22,000 preferred, $3,000 common O $2,000 preferred, $23,000 common

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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Stanley Company has 18,000 outstanding shares of $25 par, 6.25% preferred stock, and 22,000 shares of $3 par value common stock. The Board of Directors declared and paid the following dividends: $20,000 in 2021, $30,000 in 2022, and $200,000 in 2023. 1. 2. Calculate the total amount of dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: noncumulative and participating. Show calculations and label answers (yellow highlight). Same as above except calculate the dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: cumulative and nonparticipating. Show calculations and label answers (yellow highlight).
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