Andrews Company has $110,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $25 per share. Required 1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank. a. Preferred stock is nonparticipating and noncumulative. Andrews Company Schedule of dividends to be paid Preferred Common Preferred dividend $fill in the blank 4c43fe0a4005041_1 fill in the blank 4c43fe0a4005041_2 Remainder to common fill in the blank 4c43fe0a4005041_3 $fill in the blank 4c43fe0a4005041_4 Total $fill in the blank 4c43fe0a4005041_5 $fill in the blank 4c43fe0a4005041_6 b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank 40560c09dff9f86_1 $fill in the blank 40560c09dff9f86_2 Current preferred dividend fill in the blank 40560c09dff9f86_3 $fill in the blank 40560c09dff9f86_4 Remainder to common fill in the blank 40560c09dff9f86_5 fill in the blank 40560c09dff9f86_6 Total $fill in the blank 40560c09dff9f86_7 $fill in the blank 40560c09dff9f86_8 c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank b5b590fb6029f84_1 $fill in the blank b5b590fb6029f84_2 Current preferred dividends fill in the blank b5b590fb6029f84_3 fill in the blank b5b590fb6029f84_4 Common proportional share fill in the blank b5b590fb6029f84_5 fill in the blank b5b590fb6029f84_6 Remainder shared fill in the blank b5b590fb6029f84_7 fill in the blank b5b590fb6029f84_8 Total $fill in the blank b5b590fb6029f84_9 $fill in the blank b5b590fb6029f84_10

Andrews Company has $110,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $25 per share. Required 1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank. a. Preferred stock is nonparticipating and noncumulative. Andrews Company Schedule of dividends to be paid Preferred Common Preferred dividend $fill in the blank 4c43fe0a4005041_1 fill in the blank 4c43fe0a4005041_2 Remainder to common fill in the blank 4c43fe0a4005041_3 $fill in the blank 4c43fe0a4005041_4 Total $fill in the blank 4c43fe0a4005041_5 $fill in the blank 4c43fe0a4005041_6 b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank 40560c09dff9f86_1 $fill in the blank 40560c09dff9f86_2 Current preferred dividend fill in the blank 40560c09dff9f86_3 $fill in the blank 40560c09dff9f86_4 Remainder to common fill in the blank 40560c09dff9f86_5 fill in the blank 40560c09dff9f86_6 Total $fill in the blank 40560c09dff9f86_7 $fill in the blank 40560c09dff9f86_8 c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank b5b590fb6029f84_1 $fill in the blank b5b590fb6029f84_2 Current preferred dividends fill in the blank b5b590fb6029f84_3 fill in the blank b5b590fb6029f84_4 Common proportional share fill in the blank b5b590fb6029f84_5 fill in the blank b5b590fb6029f84_6 Remainder shared fill in the blank b5b590fb6029f84_7 fill in the blank b5b590fb6029f84_8 Total $fill in the blank b5b590fb6029f84_9 $fill in the blank b5b590fb6029f84_10

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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Question

Dividends

Required

1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank.

a. Preferred stock is nonparticipating and noncumulative.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Preferred dividend	$fill in the blank 4c43fe0a4005041_1	fill in the blank 4c43fe0a4005041_2
Remainder to common	fill in the blank 4c43fe0a4005041_3	$fill in the blank 4c43fe0a4005041_4
Total	$fill in the blank 4c43fe0a4005041_5	$fill in the blank 4c43fe0a4005041_6

b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Dividends in arrears	$fill in the blank 40560c09dff9f86_1	$fill in the blank 40560c09dff9f86_2
Current preferred dividend	fill in the blank 40560c09dff9f86_3	$fill in the blank 40560c09dff9f86_4
Remainder to common	fill in the blank 40560c09dff9f86_5	fill in the blank 40560c09dff9f86_6
Total	$fill in the blank 40560c09dff9f86_7	$fill in the blank 40560c09dff9f86_8

c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Dividends in arrears	$fill in the blank b5b590fb6029f84_1	$fill in the blank b5b590fb6029f84_2
Current preferred dividends	fill in the blank b5b590fb6029f84_3	fill in the blank b5b590fb6029f84_4
Common proportional share	fill in the blank b5b590fb6029f84_5	fill in the blank b5b590fb6029f84_6
Remainder shared	fill in the blank b5b590fb6029f84_7	fill in the blank b5b590fb6029f84_8
Total	$fill in the blank b5b590fb6029f84_9	$fill in the blank b5b590fb6029f84_10

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