Question

ment Exercise 14-02-c Cullumber Corporation was organized on January 1, 2019. During its first year, the corporation issued 1,900 shares of $50 par value preferred stock and 104,000 shares $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $5,850; 2020, 513,500; and 2021, 529,000. Show the allocation of dividends to each dass of stock, assuming the preferred stock dividend is 7 and noncumulative. 2019 2020 2021 Allocation to preferred stock Allocation to common stock Show the allocation of dividends to each class of stock, assuming the preferred stock vidend and cumulative 2019 2020 2021 Allocation to preferred stock Allocation to common stock LINK TO TEXT

Answer 1

Part 1
	Par value per	Divdiend	Dividend per	Number of	Preferred Dividend
	Preferred share	Rate	Preferred share	Preferred share	for 1 year
Calculation of Preferred Dividend	$50	7%	$3.50	1,900	$6,650
	2019	2020	2021
Total Cash Dividend	$5,850	$13,500	$29,000
Allocation to Preferred stock	$5,850	$6,650	$6,650
Allocation to Common stock(Remainder)	$0	$6,850	$22,350
Part 2
	Par value per	Divdiend	Dividend per	Number of	Preferred Dividend
	Preferred share	Rate	Preferred share	Preferred share	for 1 year
Calculation of Preferred Dividend	$50	9%	$4.50	1,900	$8,550
	2019	2020	2021
Total Cash Dividend	$5,850	$13,500	$29,000
Allocation to Preferred stock(Current Year)	$5,850	$8,550	$8,550
Allocation to Preferred stock(Arrear)	$0	$2,700	$0
Allocation to Preferred stock(Total)		$11,250	$8,550
Allocation to Common stock(Remainder)	$0	$2,250	$20,450