NOTE: PROBLEM WAS ATTEMPTED AND SOLUTIONS ARE PROVIDED AS WELL AS THOSE THAT WERE WRONG, WHICH I MARKED "INCORRECT". Exercise 13-9 Dividends on common and cumulative preferred stock L.O. C2 Wad

NOTE: PROBLEM WAS ATTEMPTED AND SOLUTIONS ARE PROVIDED AS WELL AS THOSE THAT WERE WRONG, WHICH I MARKED “INCORRECT”.

Exercise 13-9 Dividends on common and cumulative preferred stock L.O. C2

Wade’s outstanding stock consists of 45,000 shares of cumulative 10.00% preferred stock with a $10 par value and also 112,500 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends.

2011 $ 36,000

2012 39,000

2013 85,000

2014 125,000

Determine the amount of dividends paid each year to each of the two classes of stockholders. (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Preferred Common

2011 $ 36,000 $ 0

2012 $ 48,000-INCORRECT $ 0

2013 $ 45,000-INCORRECT $ 40,000 -INCORRECT

2014 $ 45,000 $ 80,000

Determine the total dividends paid to each class for the four years combined. (Omit the “$” sign in your response.)

Preferred Common

Total dividends for four years $ 174,000-INCORRECT $ 120,000-INCORRECT

Leave a Comment