At the beginning of 2021, E-Games Corporation has issued 1,700 shares of 6%, $100 par...
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Accounting
At the beginning of 2021, E-Games Corporation has issued 1,700 shares of 6%, $100 par value preferred stock. All remaining shares are common stock. The company did not pay dividends in 2021 due to cash flow difficulties, but pays dividends of $22,000 in 2022. Required: 1. & 2. How much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2022, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?
Cumulative
Non Cumulative
Preferred dividends in arrears for 2021
$0
Preferred dividends for 2022
Remaining dividends to common stockholders
Total dividends
$0
$0
please explain each step on how you do it . what is the difference in cumulative and non cumulative?
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