Need help with review accounting question At December 31, 2019, the records of Hoffman Company reflected the following balances In the shareholders' equity accounts:Common shares: par $12 per share; 40,000 shares outstandingPreferred shares: 8 percent par $10 per share; 6,000 shares outstandingRetalned earnings: $220,000On January 1, 2020, the board of directors was considering the distribution of a $62.000 cash dividend. No dividends were paldduring 2018 and 2019.Required:Determine the total and per-share amounts that would be pald to the common shareholders and to the preferred shareholders undertwo Independent assumptions:1-a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places.)TotalPer SharePaid to preferred shareholdersPaid to common shareholders1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.)TotalPer SharePaid to preferred shareholdersPaid to common shareholders2 Why were the dividends per common share less for the second assumption?O The total dividend amount and dividends per share of common shares were less under the second assumption because thedividends In arrears on the preferred shares had to be fulfilled before dividends could be pald for the current year.O The total dividend amount and dividends per share of common shares were less under the second assumption because thedividend rate for preferred shareholders was Increased.3. What factors would cause a more favourable dividend for the common shareholders? (V2 The preferred dividends were not in arrears.The total dvidend alstribution was Increased.The preferred alvidends were not cumulative.7 The preferred avidends were In arrears.The total dvidend distribution was decreased.

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December 31, 2019, the records of Hoffman Company reflected the following balances in the shareholders' equity accounts: ommon shares: par $12 per share; 40,000 shares outstanding eferred shares 8 percent par $10 per share: 6,000 shares outstanding atained earmings: $220,000 n January 1, 2020, the board of directors was considering the distribution of a $62.000 cash dividend. No dividends were pald uring 2018 and 2019. equired: termine the total and per-share amounts that would be pald to the common shareholders and to the preferred shareholders unde wo Independent assumptions: a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places)

December 31, 2019, the records of Hoffman Company reflected the following balances in the shareholders' equity accounts: ommon shares: par $12 per share; 40,000 shares outstanding eferred shares 8 percent par $10 per share: 6,000 shares outstanding atained earmings: $220,000 n January 1, 2020, the board of directors was considering the distribution of a $62.000 cash dividend. No dividends were pald uring 2018 and 2019. equired: termine the total and per-share amounts that would be pald to the common shareholders and to the preferred shareholders unde wo Independent assumptions: a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places)

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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