Question

Horizon Communications has the following shareholders’ equity:
Share Capital:
Preferred Shares, 8%, unlimited number of shares authorized,
20,000 shares issued and outstanding ......... $ 200,000
Common Shares, 500,000 shares authorized,
300,000 shares issued and outstanding ........ 750,000
Total Share Capital ............... $ 950,000
Retained Earnings ............... 150,000
Total Shareholders’ Equity ........... $1,100,000
Requirement
Assume the preferred shares are cumulative. Compute the amount of dividends to preferred and common shareholders for 2014 and 2015 if total dividends are $15,000 in 2014 and $50,000 in 2015.


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  • CreatedJuly 08, 2015
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