Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Question

Question

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:

Year 1	$10,000
Year 2	45,000
Year 3	90,000

Determine the dividends in arrears for preferred stock for the second year.

a.$10,000

b.$30,000

c.$0

d.$25,000

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Arrears of preferred dividend is carried over next years and paid before paying any dividend on common shares

Annual preferred dividend = 20,000*100*2% = $40,000

Arrears in Year 1 = 40,000-10,000 = $30,000

Year 2 = 45000 - 40,000-30,000 = $25000

Hence, the answer is d.

Add a comment

Answer 2

Similar Homework Help Questions

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following accounts were distributed as dividends: Year 1 $10,000 Year 2 45,000 Year 3 90,000 Determine the dividends in arrears for preferred stock at the end of second year. a. $30,000 b. $10,000 c. $25,000 d. $0 please give the steps too.
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the third year.
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 por common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 90,000 Determine the dividends per share for preferred and common stock for the first year a $2.00 and $0.00 b. $0.50 and $0.00 c. $0.50 and $0.10 d. $0.00 and $0.10

Calculator Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares...

Calculator Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: Year 2: Year 3: $10,000 45,000 90,000 Determine the dividends per share for preferred and common stock for the first year O$0.00 and $0.10 O$0.50 and $0.00 O $0.50 and $0.10 O$2.00 and $0.00 Previous Next Check My Work more Check my work uses remaining 10 AM A 400 1126/2019...
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 $10,000 Year 2 45,000 Year 3 90,000 Determine the dividends per share for preferred and common stock for the first year. a.$0.50 and $0.10 b.$2.00 and $0 c.$0.50 and $0 d.$0 and $0.10 A corporation has 49,347 shares of $38 par stock outstanding that has a current market value of $350...
KTM Company has 20,000 shares of $100 par, 3% cumulative preferred stock and 100,000 shares of...

KTM Company has 20,000 shares of $100 par, 3% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $20,000 Year 2:45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. O $60,000 $45,000 O $55,000 O $40,000 DLL

Windborn Company has 15,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of...

Windborn Company has 15,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: 20Y1 $45,000 20Y2 12,000 20Y3 90,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.
Dividends Per Share Windborn Company has 10,000 shares of cumulative preferred 3% stock, $100 par and...

Dividends Per Share Windborn Company has 10,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $45,000 Year 2 12,000 Year 3 90,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $...
Dividends Per Share Sandpiper Company has 20,000 shares of cumulative preferred 1% stock, $100 par and...

Dividends Per Share Sandpiper Company has 20,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends: Year 1 $40,000 Year 2 10,000 Year 3 60,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $...

Dividends Per Share Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $100 par and...

Dividends Per Share Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $45,000 Year 2 24,000 Year 3 90,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock (dividends per share) Common Stock (dividends per share) Year 1 $ $...

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Homework Answers

Add Answer to:
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of...

Post as a guest

Earn Coins