Preferred and common stockholders based problem


The stockholders' equity section of lemay corporation shows the following on Dec 31,2011

Preferred stock -6%, $100 par 4000 shares outstanding $400,000

Common stock ------$10 par, 60,000 shares outstanding $600,000

paid in capital in excess of par 200,000

Retained Earnings 114,000

Total Stockholder equity 1,314,000

Instructions:

Assuming that all of the company's retained earning are to be paid out in dividends in 12/31/2011 and that preferred dividends were last paid on 12/31/2009, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

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Accounting Basics: Preferred and common stockholders based problem
Reference No:- TGS068503

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