Question

CALCULATOR PRINTER V Bercise 14-02-(Part Level Submission) Surland Corporation was organized on January 1, 2019. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 110,000 shares of $10 per value common stock. At December 31, the company declared the following cash dividends: 2019, $5,325, 2020, $13,800, and 2021, 528,500 ON BACK Your answer is correct. Show the allocation of dividends to each class of stock, assuming the preferred stock dividends and m otive Allocation to preferred stock Allocation to common stock Click if you would like to show Work for this questions Open Show Work LIST OF ACCOUNTS SHOWS

Answer 1

ANSWER:

For 2019:

preference dividend = 1950 x $50 x 8% = $7800 restricted to declared dividend = $5325

equity dividend = 0

For 2020:

preference dividend:

payable in respect of previous periods = $7800 - $5325 = $2475

payable in respect of current period =  1950 x $50 x 8% = $7800

equity dividend = $13800 - $2475 - $7800 = $3525

For 2021:

preference dividend = 1950 x $50 x 8% = $7800

equity dividend = $28500 - $7800 = $20700