Tijiu Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Tijiu Broadcasting Inc. declared
Question:
Tijiu Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Tijiu Broadcasting Inc. declared and paid the following dividends during a three-year period: 2018, $45,000; 2019, $0; and 2020, $120,000.
Required
1. Compute the total dividends on preferred shares and common shares for each of the three years if
a. Preferred shares are noncumulative.
b. Preferred shares are cumulative.
2. For Requirement 1(b), record the declaration of the 2020 dividends on December 28, 2020, and the payment of the dividends on January 17, 2021. Use separate Dividends Payable accounts for preferred shares and common shares.
Step by Step Answer:
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood