Question

CALCULATOR PRINTER VERSION BACK NEXT Exercise 14-02 a-c (Part Level Submission) Sheridan Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,100 shares of $50 par value preferred stock and 107,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $5,000; 2020, $13,500; and 2021, $27,000. (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative. 2019 2020 2021 Allocation to preferred stock Allocation to common stock Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above. MacBook Pro

Answer 1

2019 annual dividend entitlement of preferred stock = 2,100 * $50 * 6% = $6,300 2019 $5,000 2020 $13,500 2021 $ 27,000 total dividends paid allocation to preferred stock | allocation to common stock 2019 $5,000 $0 2020 $ 6,300 $ 7,200 2021 $ 6,300 $ 20,700

for formulas and calculations, refer to the image below -

04 1 x fc 2019 A C D E F annual dividend entitlement of preferred stock = 2,100 * $50 * 6% = $6,300 2019 5000 2020 13500 2021 27000 total dividends paid 2020 2019 allocation to preferred stock 5000 allocation to common stock =C5-C8 6300 =D5-D8 2021 6300 =E5-E8

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