Lighthouse Inc., a software development firm, paid a total of $75,000 in dividendsin fiscal year 2020. For the year Lighthouse had 3,000 shares of cumulativepreferred $6 stock, $15 par and 15,00o shares of common stock, $10 par isued.Lighthouse did not pay dividends in 2018, and 2019.Required:Determine how much each common shareholder and preferred shareholder willreceive?Show Your Work:

Annual preferred dividend = 3,000 x 6 = 18,000 Preferred shareholders receive dividend in 2020 = Preferred dividend arrears of 2018 + Preferred dividend arrears of 2019 + Preferred dividend of 2020 = 18,000 + 18,000 + 18,000 = 54,000 Common shareholders receive dividend in 2020 = Total dividend paid - preferred dividend = 75,000 - 54,000 = 21,000 Each common shareholder will receive dividend of = 21,000/15,000 = $1.40 Each preferred shareholder will receive dividend of = 54,000/3,000 = $18

Business

Accounting

Lighthouse Inc., a software development firm, paid a total of $75,000 in dividends in fiscal year 2020. For the year Lighthouse had 3,000 shares of cumulative preferred $6 stock, $15 par and 15,000 shares of common stock, $10 par issued. Lighthouse did not pay dividends in 2018, and 2019. Required: Determine how much each common shareholder and preferred shareholder will receive? Show Your Work:

Lighthouse Inc., a software development firm, paid a total of $75,000 in dividends in fiscal year 2020. For the year Lighthouse had 3,000 shares of cumulative preferred $6 stock, $15 par and 15,000 shares of common stock, $10 par issued. Lighthouse did not pay dividends in 2018, and 2019. Required: Determine how much each common shareholder and preferred shareholder will receive? Show Your Work:

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Lighthouse Inc., a software development firm, paid a total of $75,000 in dividends
in fiscal year 2020. For the year Lighthouse had 3,000 shares of cumulative
preferred $6 stock, $15 par and 15,00o shares of common stock, $10 par isued.
Lighthouse did not pay dividends in 2018, and 2019.
Required:
Determine how much each common shareholder and preferred shareholder will
receive?
Show Your Work:

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