Dividends Keener Company has had 900 shares of 7%, $100 par preferred stock and 42,000...
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Accounting
Dividends
Keener Company has had 900 shares of 7%, $100 par preferred stock and 42,000 shares of $5 stated value common stock outstanding for the last 3 years. During that period, dividends paid totaled $5,300, $25,300, and $31,800 for each year, respectively.
Required:
Compute the amount of dividends that Keener must have paid to preferred shareholders and common shareholders in each of the 3 years, given the following 3 independent assumptions:
1. Preferred stock is nonparticipating and noncumulative.
Schedule of dividends
preferred
common
total
year 1
5300
0
5300
year 2
6300
19000
25300
year 3
6300
25500
31800
2. Preferred stock is nonparticipating and cumulative.
Schedule of dividends
preferred
common
total
year 1
5300
0
5300
year 2
7300
18000
25300
year 3
6300
25500
31800
3. Preferred stock is fully participating and cumulative.
Schedule of dividends
preferred
common
total
year 1
5300
0
5300
year 2
X
X
25300
year 3
X
X
31800
I need help finding the Xs.
please show how you got your answer. Thank you!
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