Question

Janeek Enterprise

[Preferred shareholders]

Please show all work and answer promptly.

Question 1 0.5 points Save Answer The shareholders' equity of Janeek Enterprises includes $234,500 of no par common stock and $438,400 of 9% cumulative preferred stock. The board of directors declared cash dividends of $86,100 in 2016 after paying $31,100 cash dividends in 2015. What is the amount of dividends in arrears for preferred shareholders in 2015?

Answer 1

	Par value	Divdiend	Preferred Dividend
	Preferred share	Rate	for 1 year
Calculation of Preferred Dividend	$4,38,400	9%	$39,456
	Total cash dividend paid	Paid to preferred	Paid to common	Dividend in arrears
2015	$31,100	$31,100	0	$8,356
2016	$86,100	$47,812	$38,288	$0
Totals	$1,17,200	$78,912	$38,288
	So Dividend in arrears for 2015 was $8,356($39,456 - $31,100)