Question

Dividends Per Share

Sandpiper Company has 30,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:

Year 1	$90,000
Year 2	30,000
Year 3	180,000

Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	$	$	$
Common stock (Dividends per share)	$	$	$

Answer 1

Stock	Year 1	Year 2	Year 3
Preferred stock:
Opening liability	-	-	30,000
Current year payable	60,000	60,000	60,000
Dividend paid	60,000	30,000	90,000
Closing liability	-	30,000	-
Per share dividend	2.00	1.00	3.00
Common stock:
Total dividends	90,000	30,000	180,000
Less paid to preferred stock	60,000	30,000	90,000
Common stock dividends	30,000	-	90,000
Per share dividend	0.60	0.00	1.80