Tijiu Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Tijiu Broadcasting Inc. declared
Question:
Tijiu Broadcasting Inc. has 15,000 $2.50 preferred shares and 75,000 common shares outstanding. Tijiu Broadcasting Inc. declared and paid the following dividends during a three year period: 2015, $45,000; 2016, $0; and 2017, $120,000.
Required
1. Compute the total dividends on preferred shares and common shares for each of the three years if
a. Preferred shares are noncumulative.
b. Preferred shares are cumulative.
2. For Requirement 1(b), record the declaration of the 2017 dividends on December 28, 2017, and the payment of the dividends on January 17, 2018. Use separate Dividends Payable accounts for preferred shares and common shares.
Step by Step Answer:
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood