college accounting chapter 20 set b 20.1b

Problem Set B Problem 20.1B Objective 20-5 - Computing dividends payable. Cancell Corporation issued and has outstanding 50,000 shares of \$5 parvalue common stock and 10,000 shares of $100 par-value, 5 percent preferred stock. The board of directors votes to distribute $40,000 as dividends in 201, $90,000 in 202, and $120,000 in 203. INSTRUCTIONS Compute the total dividend and the dividend for each share to be 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 Case B: The preferred Sto Analyze: if a stockholder owned 1,600 shares of preferred stock throughout 201203, what total dividends did he receive for Case B ? Problem 20.2B Objective 20-5 - Computing dividends payable