What is the total amount of dividends payable to preferred


ROK Corporation had the following shares of stock outstanding on December 31, 2010:

Common Stock, $25 par value, 200,000 shares outstanding

Preferred stock, 7%, $100 par value, cummulative, 20,000 shares outstanding

Dividends were in arrears for 2008 and 2009. On December 31, 2010, total cash dividends of $500,000 were declared.

1. What is the total amount of dividends payable to preferred stockholders in 2010?

2. What is the total amount of dividends payable to common stockholders in 2010?

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Accounting Basics: What is the total amount of dividends payable to preferred
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