Dividends on Preference and Ordinary Shares Required:Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions. Dividends on Preference and Ordinary SharesThe preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31,2019 follows:8% Preference Shares, P10 par, cumulative,participating, 40,000 shares authorized, 10,000shares issued and outstandingOrdinary Shares, P2 par, 10,000,000 shares authorized,250,000 shares issued and outstandingTotal Preference and Ordinary SharesP100,000500,000P600,000.Required:Calculate the amount of dividends received by preference and ordinary shareholders,respectively, under each of the following assumptions:1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzadadeclared a total dividend of P56,000.No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a totaldividend of P66,000.2.3.Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. DelaCalzada declared a total dividend of P88,000.

Ordinary shares: These are the shares issued by a company to an outsider. These shares entitle a…

Answered: Required: Calculate the amount of…

Required: Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions.

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 on Preference and Ordinary Shares

Required:

Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions.

Dividends on Preference and Ordinary Shares
The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31,
2019 follows:
8% Preference Shares, P10 par, cumulative,
participating, 40,000 shares authorized, 10,000
shares issued and outstanding
Ordinary Shares, P2 par, 10,000,000 shares authorized,
250,000 shares issued and outstanding
Total Preference and Ordinary Shares
P100,000
500,000
P600,000.
Required:
Calculate the amount of dividends received by preference and ordinary shareholders,
respectively, under each of the following assumptions:
1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada
declared a total dividend of P56,000.
No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total
dividend of P66,000.
2.
3.
Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela
Calzada declared a total dividend of P88,000.

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