Question

Application Problem 11-9A a-c (Part Level Submission) The shareholders' equity of Deer Ltd. at the end of 2020 and 2019 appeared as follows: 2020 2019 $181,300 $181,300 Share capital, preferred shares, $2 cumulative, 2,000,000 shares authorized, 25,900 shares issued Share capital, 5,000,000 common shares authorized, 1,260,000 common shares issued (2019-1,070,000 shares) Retained earnings Total shareholders' equity 5,230,000 4,280,000 4,202,000 3,404,000 $9,613,300 $7,865,300 During 2020, Deer paid a total of $137,200 in cash dividends. (a) Your answer is correct. Assume the preferred shares were not in arrears at December 31, 2019. How was the $137,200 in cash dividends distributed between the two types of shares in 2020? Preferred Common 51800 85400 Total 137200 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 1 of 2 used (b) Assume the preferred share dividends were in arrears for one year; that is, the dividends were not paid in 2019. How was the $137,200 in cash dividends distributed between the two classes of shares? Preferred Common Total 2019 arrears $ 2020

Answer 1

Dividend distribution

	Preferred	Common	Total
2019 arrears	51800		51800
2020	51800	33600	85400
Total	103600	33600	137200