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Exercise 11-10 (Part Level Submission) Oriole Company was organized on January 1, 2021. During its first...

Exercise 11-10 (Part Level Submission)

Oriole Company was organized on January 1, 2021. During its first year, the corporation issued 2,300 shares of $50 par value preferred stock and 120,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,600; 2022, $11,700; and 2023, $30,000.

(a)

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative. (Do not leave any answer field blank. Enter 0 for amounts.)
2021 2022 2023
Total dividend $ $ $
Allocation to preferred stock
Remainder to common stock $ $ $
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Ans:

2021 2022 2023
Total Dividend $5,600 $11,700 $30,000
Allocation to preferred stock $5,600 $5,750 $5,750
Remainder to common stock $0 $5,950 $24,250

Note: It's a general practice, preferred stock dividend paid earlier to the common stock dividend.

Workings:

Preferred stock dividend: 2,300 shares x $50 par value x 5% = $5,750

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