Exercise 14-2 (Part Level Submission) Knudsen Corporation was organized on Janua

Question

Exercise 14-2 (Part Level Submission) Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 110,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2016, $6,325; 2017, $13,900; and 2018, $28,500 (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 9% and cumulative. 2016 2017 2018 Allocation to preferred stock Allocation to common stoclk SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

preferred stock dividend = 50*9%*1950 8775 2016 2017 2018 Allocation to preferred stock 6,325 11,225 8,775 allocation to common stock 2675 19725 8775 8775 -6325 2,450 Arrear 2450 total paid 11225

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