When Ching Corporation was organized in January 2016, it immediately issued 10,000 shares of$50 par, 5 percent,

Question:

When Ching was organized in January 2016, it immediately issued 10,000 shares of $50 par, 5 percent, cumulative preferred stock and 15,000 shares of $10 par common stock. The company’s earnings history is as follows: 2016, net loss of $18,000; 2017, net income of $95,000; 2018, net income of $90,000. The did not pay a in 2016.
Required
a. How much is the arrearage as of January 1, 2017?
b. Assume that the board of directors declares a $65,000 cash at the end of 2017. How will the be divided between the preferred and common stockholders?
Corporation
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A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...