Kingbird Holding's accounting records show the following balances on December 31, 2020. 12% Preferred stock-$100 par value, outstanding 21,000 shares Common stock-$1 par value, outstanding 53,000 shares Retained earnings $ Assuming that the directors decide to declare total dividends in the amount of $520,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 0 decimal places, e.g. $38,487.) $ Preferred $ Preferred $ Common (b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) Preferred $2,100,000 53,000 Common 1,590,000 (c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.) Common
Kingbird Holding's accounting records show the following balances on December 31, 2020. 12% Preferred stock-$100 par value, outstanding 21,000 shares Common stock-$1 par value, outstanding 53,000 shares Retained earnings $ Assuming that the directors decide to declare total dividends in the amount of $520,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to 0 decimal places, e.g. $38,487.) $ Preferred $ Preferred $ Common (b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) Preferred $2,100,000 53,000 Common 1,590,000 (c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.) Common
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
Transcribed Image Text:Kingbird Holding's accounting records show the following balances on December 31, 2020.
12% Preferred stock-$100 par value, outstanding 21,000 shares
Common stock-$1 par value, outstanding 53,000 shares
Retained earnings
Assuming that the directors decide to declare total dividends in the amount of $520,000, determine how much each class of stock
should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.
tA
(a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round
answers to O decimal places, e.g. $38,487.)
$
$
Preferred
tA
$
(b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.)
Preferred
$
Preferred
Common
$ 2,100,000
53,000
(c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock.
(Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. $38,487.)
LA
1,590,000
Common
Common
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