Dividend Distribution Heisenburg Inc. has the following records available for their stockholders' equity account on...
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Accounting
Dividend Distribution Heisenburg Inc. has the following records available for their stockholders' equity account on December 31
Account: Common stock
Balance: $150,000
Number of Shares Outstanding: 15,000
Account: Additional Pain in Capital
Balance: $250,000
Account: Retain Earnings
Balance: $400,000
Account: Cumulative Preferred Stock -5%
Balance: $350,000
Number of Shares Outstanding: 10,000
The company declared cash dividends amounting to $100,000. a. If no dividends in arrears on the preferred stock exist, how much in total dividends, and in dividends per share, is paid to each class of stock? b. If one year of dividends in arrears exist on the preferred stock, how much in total dividends, and in dividends per share, is paid to each class of stock?
Ref.
Preferred
Common
Total
a.
Answer
Answer
b.
Answer
Answer
Ref.
Preferred
Common
Total
a.
$
$
$
b.
$
$
$
Ref.
Dividends per Share
Numerator
Denominator
Result
a.
per preferred
$17500
$10000
1.75
a.
per common
b.
per preferred
b.
per common
Answer & Explanation
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