Love Theatre Inc. owns and operates movie theaters throughout New Mexico and Utah. Love Theatre has declared the following annual dividends over a six-year period: 2011, $24,000; 2012, $72,000; 2013, $114,000; 2014, $138,000; 2015, $174,000; and 2016, $210,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $25 par. Required: 1. Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2011. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".
Preferred Common
|
Year |
Total Dividend | Total | Per Share | Total | Per Share |
| 2011 | $24,000 | $24,000 | $1.2 | $0 | $0 |
| 2012 | $72,000 | $72,000 | $3.6 | $0 | $0 |
| 2013 | $114,000 | $84,000 | $4.2 | $30,000 | $0.3 |
| 2014 | $138,000 | $60,000 | $3 | $78,000 | $0.78 |
| 2015 | $174,000 | $60,000 | $3 | $114,000 | $1.14 |
| 2016 | $210,000 | $60,000 | $3 | $150,000 | $1.5 |
| $18 | $3.72 |
Working notes
2011 - ($60,000 - $24,000) = $36,000 for 2012
2012 - ($60,000 + $36,000 - $72,000) = $24,000 for 2013
2013 - ($60,0006+ $24,0002- $114,000) = $30,000 common dividend
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