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Instructions: Record the declaration Record the declaration and distribution of the above dividends. Exercise 9-7 Allocation of Cash Dividends to Preference and Ordinary Shareholders) The STU Co. has paid dividends for the last three years as follows: 2012 - P2,500,000; 2013 - P3,500,000; 2014 - P6,500,000. During the last three years, the company has the following outstanding share capital: 100.000 shares of P100 par, 12% Preference Share Capital and 500,000 shares of P10 par Ordinary Share Capital. Dividends are in arrears for two years at the beginning of 2012. 376 Instructions: Calculate the amount that will be paid per share and in total on preference shares and ordinary shares for each year under each of the following independent assumptions: 1. The preference shares are noncumulative and nonparticipating. 2. The preference shares are cumulative but nonparticipating. 3. The preference shares are noncumulative but participating. 4. The preference shares are cumulative and participating. f The reference shares are noncumulative but participating up to an additional 8%