The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31, 2019 follows: 8% Preference Shares, P10 par, cumulative, participating, 400,000 share authorized, 10,000 shares issued and outstanding P100,000 Ordinary Shares, P2 par , 10,000,000 shares authorized, 250 shares issued and outstanding 500,000 Total Preference and Ordinary Shares 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. 2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000. 3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P88,000.
The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31, 2019 follows:
8%
P100,000
Ordinary Shares, P2 par , 10,000,000 shares authorized, 250 shares issued and outstanding
500,000
Total Preference and Ordinary Shares
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.
2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000.
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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