Problem - Cash Dividends
Kerry Company has 1,000 shares of $100 par value, 8% preferred stock and 11,200 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2010. Since 2010, Kerry has declared and paid dividends as follows:
2011 $ 0
2012 10,000
2013 17,600
2014 22,400
Required:
1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2012 to 2014. If an amount is zero, enter "0".
2. If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?