Distribute dividend between preferred and common shareholders.
Framer Company has 4,000 shares of 9%, $100 par, cumulative preferred stock outstand ing and 10,000 shares of $1 par value common stock outstanding. The company began op erations on January 1, 2008. The cash dividends declared and paid during each of the first 3 years of Framer's operations are shown. Calculate the amounts that went to the preferred and the common shareholders (SHs) each year.
|
Year
|
Total Dividends Paid
|
Dividends to Preferred SHs
|
Dividends to Common SHs
|
|
2008
|
$120,000
|
|
|
|
2009
|
60,000
|
|
|
|
2010
|
80,000
|
|
|