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Cash Dividends Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600...

Cash Dividends
Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2013. Since 2013, Kerry has declared and paid dividends as follows:
2014 $0
2015 9,200
2016 19,800
2017 24,800
1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero, enter "0".
Year Preferred Dividends Common Dividends
2015 9200 0
2016
2017
If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?
Year Preferred Dividends Common Dividends
2015
2016
2017
Business   Accounting   
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Answer #1

1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero, enter "0".

Year Preferred dividends Common dividends
2015 9200 0
2016 16000 3800
2017 8400 16400

If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year

Year Preferred Dividends Common Dividends
2015 8400 800
2016 8400 11400
2017 8400 16400

Annual preferred dividend = 1200*100*7% = 8400

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