Splish Brothers Inc. was organized on January 1, 2021. During its first year, the corporation issued 2,500 shares of $50 par value preferred stock and 145,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,800; 2022, $11,700; and 2023, $29,200.
Splish Brothers Inc. was organized on January 1, 2021. During its first year, the corporation issued 2,500 shares of $50 par value preferred stock and 145,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,800; 2022, $11,700; and 2023, $29,200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Splish Brothers Inc. was organized on January 1, 2021. During its first year, the corporation issued 2,500 shares of $50 par value
preferred stock and 145,000 shares of $10 par value common stock. At December 31, the company declared the following cash
dividends: 2021, $5,800; 2022, $11,700; and 2023, $29,200.
(a)
Transcribed Image Text:Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative. (Do not
leave any answer field blank. Enter O for amounts)
Total dividend
Allocation to preferred stock
Remainder to common stock
(b)
Total dividend
$
Allocation to preferred stock
2021
Remainder to common stock $
5800
2021
5800
0
$
$
2022
11700
2022
6250
5450
Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (Do not leave
any answer field blank. Enter O for amounts)
$
$
$
2023
29200
2023
6250
22950
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