Kommeri Consulting, Inc., has 9,000 shares of $6.00, no-par preferred stock and 60,000 shares of no-par common

Question:

Kommeri Consulting, Inc., has 9,000 shares of $6.00, no-par preferred stock and 60,000 shares of no-par common stock outstanding for 2014-2016. Kommeri Consulting, Inc., declared and paid the following dividends during a three-year period: 2014, $22,000; 2015, $100,000; and 2016, $225,000.

Requirements

1. Compute the total dividends to preferred stockholders and to common stockholders for each of the three years if:

a. preferred is noncumulative

b. preferred is cumulative

2. For case 1(b), journalize the declaration of the 2016 dividends on December 28, 2016, and the payment of the dividends on January 17, 2017; use separate Dividends Payable accounts for preferred and common stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...