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.

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 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?

Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the above assumed situations. (Round your per share answers to 2 decimal places.)

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?

Dividend paid

Year 2019 2020 2021 Total Dividends $7,500 10,500 254,100 Preferred Stock Total $7,500 10,500 Per Share $2.50 3.50 Common Stock Total $0 0 Per Share $0.00 0.00