Accounting Problem Solve Bridgeport Corp. has 2,300 shares of 8%, $101 par value

Question

Accounting Problem Solve Bridgeport Corp. has 2,300 shares of 8%, $101 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $118,500 cash dividend Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders 18584 The dividend paid to common stockholders 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders The dividend paid to common stockholders 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders The dividend paid to common stockholders

Explanation / Answer

Annual preferred dividends=2300*101*8%= 18584 1 Dividend paid to preferred shareholders 18584 Dividend paid to common shareholders 99916 =118500-18584 2 Dividend paid to preferred shareholders 18584 Dividend paid to common shareholders 99916 3 Dividend paid to preferred shareholders 55752 =18584*3 Dividend paid to common shareholders 62748 =118500-55752

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