In: Accounting
Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020.
Preferred shares, $4.46 non-cumulative, | |||
43,000 shares authorized and issued* | $ | 2,752,000 | |
Common shares, | |||
78,000 shares authorized and issued* | 1,248,000 | ||
*All shares were issued during 2018.
During its first three years of operations, Garda World Security
Corporation declared and paid total dividends as shown in the last
column of the following schedule.
Required:
Part A
1. Calculate the total dividends paid in each year to the
preferred and to the common shareholders.
Year |
Preferred Dividend |
Common Dividend |
Total Dividend |
2018 |
$158,000 |
||
2019 |
398,000 |
||
2020 |
558,000 |
||
Total for three years |
$0 |
$0 |
$1,114,000 |
2. Calculate the dividends paid per share to both the preferred and the common shares in 2020. (Round the final answers to 2 decimal places.)
|
Part B
1. Calculate the total dividends paid in each year to the
preferred shares and to the common shareholders assuming preferred
shares are cumulative.
Year |
Preferred Dividend |
Common Dividend |
Total Dividend |
2018 |
$158,000 |
||
2019 |
398,000 |
||
2020 |
558,000 |
||
Total for three years |
$0 |
$0 |
$1,114,000 |
2. Calculate the dividends paid per share to both the preferred and the common shares in 2020 assuming preferred shares are cumulative. (Round the final answers to 2 decimal places.)
Dividends Paid per Share |
|
Preferred shares |
|
Common shares |
Note
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