Everest Corporation has 50,000 $0 50 preferred shares and 600,000 common shares issued and outstanding During a three year period, Everest Corporation declared and paid cash dividends as follows 2011, $0 2012, $124,000 and 2013, $260,000 Required 1 Compute the total dividends to preferred shares an...

1 a Everest Corporation Total Dividends to Preferred and Common Shares for 2011 2012 and 2013 PREFER ...

Everest Corporation has 50,000 $0.50 preferred shares and 600,000 common shares issued and outstanding. During a three-year

Question:

Everest has 50,000 $0.50 preferred shares and 600,000 common shares issued and outstanding. During a three-year period, Everest declared and paid cash dividends as follows: 2011, $0; 2012, $124,000; and 2013, $260,000.
Required
1. Compute the total dividends to 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 1b, record the declaration of the 2013 dividends on December 22, 2013, and the payment of the dividends on January 12, 2014.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...