Preferred Stock Dividends:
Based on the following information, illustrate the distribution of both common and preferred stock dividends based on these two scenerios:
(1) Preferred stock is 7% and non-cummulative.
(2) Preferred Stock is 8% and cummulative.
(This will result in a total of 6 allocations, 2 for each of the 3 years.)
(3) Journalize the declaration of cash dividend for 2009 under part (2).
Shares of Preferred Stock 2,000
Par Value PS $50
Shares of Common Stock 100,000
Par Value of CS $10
Dividends 2007 $6,000
Dividends 2008 $12,000
Dividends 2009 vidends 2009 $28,000