Sabas Company has 20,000 shares of $100 par, 1% cumulative preferred stock and 100,000 shares of $50 par common stock.  The following amounts were distributed as dividends:   Year 1: $10,000 Year 2: 15,000 Year 3: 90,000             Determine the dividends per share for preferred and common stock for each year.     Year 1 Year 2 Year 3 Amount distributed       Preferred dividend (20,000 shares)       Common dividend (100,000 shares)               Dividends per share:                Preferred stock                Common stock               (Current year preferred dividend in arrears)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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.  Sabas Company has 20,000 shares of $100 par, 1% cumulative preferred stock and 100,000 shares of $50 par common stock.  The following amounts were distributed as dividends:

 

Year 1:

$10,000

Year 2:

15,000

Year 3:

90,000

           

Determine the dividends per share for preferred and common stock for each year.

 

 

Year 1

Year 2

Year 3

Amount distributed

 

 

 

Preferred dividend (20,000 shares)

 

 

 

Common dividend (100,000 shares)

 

 

 

 

 

 

 

Dividends per share:

 

 

 

         Preferred stock

 

 

 

         Common stock

 

 

 

 

 

 

 

(Current year preferred dividend in arrears)

 

 

 

 

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