When Crossett Corporation was organized in January Year 1, it immediately issued 4,900 shares of $52 par, 7 percent, cumulative preferred stock and 8,500 shares of $13 par common stock. Its earnings history is as follows: Year 1, net loss of $15,500; Year 2, net income of $61,900; Year 3, net income of $93,200. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $45,672 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. Required A Required B How much is the dividend arrearage as of January 1, Year 2? (Do not round your intermediate calculations.) Dividend arrearage
When Crossett Corporation was organized in January Year 1, it immediately issued 4,900 shares of $52 par, 7 percent, cumulative preferred stock and 8,500 shares of $13 par common stock. Its earnings history is as follows: Year 1, net loss of $15,500; Year 2, net income of $61,900; Year 3, net income of $93,200. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $45,672 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. Required A Required B How much is the dividend arrearage as of January 1, Year 2? (Do not round your intermediate calculations.) Dividend arrearage
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 1R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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