2. Stigma Corporation has 10,000, $12 preferred shares and 400,000 common shares. On February 15,...
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2. Stigma Corporation has 10,000, $12 preferred shares and 400,000 common shares. On February 15, 2021, the corporation de $460,000 dividends. Assume that dividends were not declared in 2019 and 2020. Required: a. The preferred shares are cumulative. What are the dividends allocated to preferred and common shareholders respectively for Preferred shareholders: shares X $ x years = $ Common shareholders: Total dividends of $ - dividends to preferred shareholders of = $ b. Journalize the dividend declaration. Date Accounts Debit Credit b c. Now assume that the preferred shares are non-cumulative. What would be the dividends allocated to preferred and common shareholders? Preferred shareholders: shares X $ =
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