Suivant SA’s ledger shows the following balances on December 31, 2019Share Capital, Preference, 5% $10 par value, outstanding 20,000 shares $200,000Share Capital Ordinary $100 par value, outstanding 30,000 shares $3,000,000 Retained earnings $630,000InstructionsAssuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of shares should receive under each od this condition stated below. One year’s dividends are in arrears on the preference shares.The preference shares are cumulative and fully participating The preference shares are non-cumulative and non- participating.
Suivant SA’s ledger shows the following balances on December 31, 2019Share Capital, Preference, 5% $10 par value, outstanding 20,000 shares $200,000Share Capital Ordinary $100 par value, outstanding 30,000 shares $3,000,000 Retained earnings $630,000InstructionsAssuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of shares should receive under each od this condition stated below. One year’s dividends are in arrears on the preference shares.The preference shares are cumulative and fully participating The preference shares are non-cumulative and non- participating.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suivant SA’s ledger shows the following balances on December 31, 2019
Share Capital, Preference, 5% $10 par value, outstanding 20,000 shares $200,000
Share Capital Ordinary $100 par value, outstanding 30,000 shares $3,000,000
Instructions
Assuming that the directors decide to declare total dividends in the amount of $266,000, determine how much each class of shares should receive under each od this condition stated below. One year’s dividends are in arrears on the
The preference shares are cumulative and fully participating
The preference shares are non-cumulative and non- participating.
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