Preferred Stock6%, $15 Par Value; 7,500 shares authorized, 6,000 shares issued and outstanding Common Stock$0.35 Par Value;
Question:
Preferred Stock—6%, $15 Par Value; 7,500 shares authorized, 6,000 shares issued
and outstanding
Common Stock—$0.35 Par Value; 2,000,000 shares authorized, 1,300,000 shares
issued and outstanding
Requirements
1. | Golden declares cash dividends of $25,000 for 2016. How much of the dividends goes to preferredstockholders? How much goes to common stockholders? |
2. | Assume the preferred stock is cumulative and Golden passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of $46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders? |
3. | Assume the preferred stock is noncumulative and Golden passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of $30,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders? |
Golden's dividend would be divided between preferred and common stockholders in this manner:
Total Dividend | ||
Dividend to preferred stockholders: | ||
Dividend in arrears | ||
Current year dividend | ||
Total dividend to preferred stockholders | ||
Dividend to common stockholders |
Requirement 2. Assume the preferred stock is cumulative and Golden
passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of $30,000.
How much of the dividend goes to preferred stockholders? How much goes to common stockholders? (Complete all input boxes. Enter "0" for any zero amounts.)
Golden's dividend would be divided between preferred and common stockholders in this manner:
Total Dividend | ||
Dividend to preferred stockholders: | ||
Dividend in arrears | ||
Current year dividend | ||
Total dividend to preferred stockholders | ||
Dividend to common stockholders |
Requirement 3. Assume the preferred stock is noncumulative and
Golden passed the preferred dividend in 2014 and 2015.In 2016, the company declares cash dividends of $30,000.
How much of the dividend goes to preferred stockholders? How much goes to common stockholders? (Complete all input boxes. Enter "0" for any zero amounts.)
Golden's dividend would be divided between preferred and common stockholders in this manner:
Total Dividend | ||
Dividend to preferred stockholders: | ||
Dividend in arrears | ||
Current year dividend | ||
Total dividend to preferred stockholders | ||
Dividend to common stockholders |
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby