Stockholders equity of Ernst Company consists of 86,000 shares of $5 par value, 10% cumulative preferred stock
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Stockholders’ equity of Ernst Company consists of 86,000 shares of $5 par value, 10% cumulative preferred stock and 310,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company’s inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $155,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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