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The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (a) P27,000 (b) P25,000 (c) P22,000 (d) P21,000 The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000

The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (a) P27,000 (b) P25,000 (c) P22,000 (d) P21,000 The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000

FINANCIAL ACCOUNTING
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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The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (а) Р27,000 (b) P25,000 (c) P22,000 (d) P21,000 .The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 .The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000
Transcribed Image Text:The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (а) Р27,000 (b) P25,000 (c) P22,000 (d) P21,000 .The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 .The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000
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