Explore BrainMass

Explore BrainMass

    Common and Preferred Dividends

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See attached file.
    Preferred Stock Dividends
    Based on the following information, illustrate the distribution of both
    common and preferred stock dividends based on these two scenerios:
    (1) Preferred stock is 7% and non-cummulative.
    (2) Preferred Stock is 8% and cummulative.
    (This will result in a total of 6 allocations, 2 for each of the 3 years.)
    (3) Journalize the declaration of cash dividend for 2009 under part (2).
    Shares of Preferred Stock
    2,000
    Par Value PS
    $50
    Shares of Common Stock
    100,000
    Par Value of CS
    $10
    Dividends 2007
    $6,000
    Dividends 2008
    $12,000
    Dividends 2009vidends 2009
    28000,

    © BrainMass Inc. brainmass.com June 3, 2020, 10:54 pm ad1c9bdddf
    https://brainmass.com/business/accounting/common-preferred-dividends-255173

    Attachments

    Solution Preview

    Based on the following information, illustrate the distribution of both
    common and preferred stock dividends based on these two scenerios:
    (1) Preferred stock is 7% and non-cummulative.
    (2) Preferred Stock is 8% and cummulative.
    (This will result in a total of 6 allocations, 2 for each of the 3 years.)
    (3) Journalize the declaration of cash dividend for 2009 under part (2).
    Shares of Preferred Stock 2,000
    Par Value PS $50
    Shares of Common Stock 100,000
    Par Value of ...

    Solution Summary

    The solution explains how to calculate the amount of common and preferred dividends for the given situations.

    $2.19

    ADVERTISEMENT