Kimmel, Accounting, Se view 11.3 Ayayai Corp. has 4,200 shares of8%, $100 par va

Question

Kimmel, Accounting, Se view 11.3 Ayayai Corp. has 4,200 shares of8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a 128,000 cash dividend Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. L. The preferred stock is noncumulative, and the company has not missed any dividends in previous yeers The dividend paid to preferred stockholder, The dividend paid to common stockholders 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years The dividend paid to preferred stockholders The dividend paid to common stockholders 1. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockhoiderss The dividend paid to cemmon stockolders s Click i you would like to Show Work for this question: Oen Show Work

Explanation / Answer

Preferred dividend :4200*100*8%= 33600

33600 current + (33600*2 )previous years

100800

IN CASe of cummulative preference shares, dividend in arrear and current year dividend is first paid to preferred stockholders and then to common stockholders.

Preferred common stock 1) 33600 128000-33600= 94400 2) 33600 94400 3)

33600 current + (33600*2 )previous years

100800

128000-100800= 27200

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