Weston Company issued and has outstanding 114,000 shares of $10 par-value common stock and 3,000 shares of

Question:

Weston Company issued and has outstanding 114,000 shares of $10 par-value common stock and 3,000 shares of $50 par-value 25 percent preferred stock. The board of directors votes to distribute $7,500 as dividends in 2019, $10,500 in 2020, and $254,100 in 2021.

INSTRUCTIONS
Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations:
Case A: The preferred stock is nonparticipating and noncumulative.
Case B: The preferred stock is cumulative and nonparticipating.
Analyze: If a stockholder purchased 350 shares of cumulative preferred stock in 2019, what total dividends should be paid to this stockholder in the fiscal year 2021, assuming Case B?

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... Dividend
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...