Southern Star Inc. manufactures and sells surfboards in Florida, Georgia and the Alabama. A publicly owned corporation, the company's outstanding stock consisted of 50,000 shares of 2%, $50 par cumulative, nonparticipating Preferred Stock and 500,000 shares of $10 par Common Stock in the years 2008 - 2013. Southern Star has declared the following annual dividends over the six-year period: 2008 none; 2009 $ 100,000; 2010 $ 150,000; 2011 $ 120,000; 2012
$ 35,000; and 2013 $ 900,000. Calculate the total dividends and the per-share dividends for each class of stock for each of the six years. Include a column for dividends in arrears.
Preferred stock Common stock
Year Dividend Dividend DPS Arrears Dividend DPS
- 2008 0 0 0 50,000 0 0
- 2009 100,000 100,000 1.00 0 0 0
- 2010 150,000 50,000 1.00 0 100,000 .20
- 2011 120,000 50,000 1.00 0 20,000 .04
- 2012 35,000 35,000 .70 15,000 0 0
- 2013 900,000 65,000 1.30 0 835,000 1.67