Cash Dividends Kerry Company has 1,250 shares of $100 par value, 11% preferred s
ID: 2740477 • Letter: C
Question
Cash Dividends
Kerry Company has 1,250 shares of $100 par value, 11% preferred stock and 8,200 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2010. Since 2010, Kerry has declared and paid dividends as follows:
2011
$ 0
2012
15,250
2013
29,500
2014
34,000
Required:
1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2012 to 2014. If an amount is zero, enter "0".
Year
Preferred Dividends
Common Dividends
2012
$
$
2013
$
$
2014
$
$
2. If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?
Year
Preferred Dividends
Common Dividends
2012
$
$
2013
$
$
2014
$
$
2011
$ 0
2012
15,250
2013
29,500
2014
34,000
Explanation / Answer
When preference shares are cumulative
When preference shares are non cumulative
Year Pref Dividend Payable Pref Dividend Paid Pref Dividend Balance Common Dividend Total 2011 13,750.00 - 13,750.00 - - 2012 27,500.00 15,250.00 12,250.00 - 15,250.00 2013 26,000.00 26,000.00 - 3,500.00 29,500.00 2014 13,750.00 13,750.00 - 20,250.00 34,000.00Related Questions
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