Question

York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 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. 2016 total cash dividends $ 20,000 2018 total cash dividends $ 200,000 2017 total cash dividends 28,000 2019 total cash dividends 350,000 Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

	Par Value per Preferred Share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
2016	$20,000
2017	28,000
2018	200,000
2019	350,000
Total:	$598,000

Answer 1

Non - Cumulative	Par Value per Preferred share	Dividend rate	Dividend per Preferred share	Number of Preferred shares	Preferred Dividend
	(a)	(b)	(c) = (a) X (b)	(d)	(c) x (d)
Annual Preferred Dividend:	$                     5	7.5%	$             0.375	80,000	$       30,000
	Total cash Dividend Paid	Paid to Preferred	Paid to Common	Dividend in arrears at year-end
2015	$           20,000	$       20,000	0	0
2016	$           28,000	$       28,000	0	0
2017	$       2,00,000	$       30,000	$       1,70,000	0
2018	$       3,50,000	$       30,000	$       3,20,000	0
Total:	$       5,98,000	$   1,08,000	$       4,90,000	0
Note: First Dividend is paid to Preferred shareholder's and if balance remains then it will be distributed to Common shareholder's.