Swan Creek Company has 40,000 shares of cumulative preferred 2% stock, $60 par and 50,000 shares of $50 par common stock . The following amounts were distributed as dividends: Year 1...... $ 30,000 Year 2 .... 90,000 Year 3... 125,000 Determine the dividends per share for preferred and common stock for each year.

Chapter 11, Practice Exercises #1

Swan Creek Company has 40,000 shares of cumulative preferred 2% stock, $60 par and 50,000 shares of $50 par common stock. The following amounts were distributed as dividends:

Year 1...... $ 30,000

Year 2 .... 90,000

Year 3... 125,000

Determine the dividends per share for preferred and common stock for each year.

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...