Question

In: Accounting

Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of...

Sandpiper Company has 15,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends:

Year 1 $67,500
Year 2 36,000
Year 3 135,000

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) $ $ $

Solutions

Expert Solution

Interest @ 2% Per year on preferred shares
Peferred Capital = 15,000 Cumulative pref Shares of $ 150 Each = $           22,50,000 $                      45,000
Common Share Capital = 50,000 Shares of $ 30 = $           15,00,000
Cumulative means the if the preference dividend is not paid in the last year then that shoul be accumulate
in next years payment ot it will carry forward as unpaid dividend
Year total Cash Dividend Paid (A) Paid to Preferred Stock (B) Paid to Common Shares (A -B) Dividend in the arreas for 2 year Remarks
Year1 $               67,500.00 $                                     45,000.00 $           22,500.00 $                               -   No Arreas of dividend for preference shares because pais full amount
Year2 $               36,000.00 $                                     36,000.00 $                          -   $                  9,000.00 Ther eis partly paid only in preference dividend so there is arreas of $ 9000
Year3 $            1,35,000.00 $                                     54,000.00 $           81,000.00 $                               -   Preference Dividend = $ 45000 current dividend + $ 9000 arrears
Dividend per share = Dividend/ Total outstanding shares
Preferred   Common
Total Outstanding shares = 15000 50000
Dividend per share for Year 1= $                                               3.00 $                     0.45
Dividend per share for Year 2= $                                               2.40 $                          -  
Dividend per share for Year 3 = $                                               3.60 $                     1.62

Related Solutions

Sandpiper Company has 25,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of...
Sandpiper Company has 25,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends: 20Y1 $150,000 20Y2 30,000 20Y3 225,000 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'.
Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of...
Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $37,500 Year 2 12,000 Year 3 45,000 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...
Sandpiper company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares a...
Sandpiper company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares a $15 par common stock. the following amounts were distributed as dividends year 1. 20,000 year 2. 8000 year 3. 30000 preferred stock. common stock dividends per share. dividends per share year 1 year 2 year 3
Dividends Per Share Sandpiper Company has 30,000 shares of cumulative preferred 3% stock, $150 par and...
Dividends Per Share Sandpiper Company has 30,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: Year 1 $337,500 Year 2 67,500 Year 3 405,000 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) $ $ $...
Dividends Per Share Sandpiper Company has 30,000 shares of cumulative preferred 2% stock, $100 par and...
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) $ $ $...
Seacrest Company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of...
Seacrest Company has 10,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year 1 $20,000 Year 2 5,000 Year 3 30,000 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'. Preferred Stock (dividend per share) Common Stock (dividend per share) Year 1 $ $ Year 2 $...
Dividends Per Share Seacrest Company has 15,000 shares of cumulative preferred 2% stock, $50 par and...
Dividends Per Share Seacrest Company has 15,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: Year 1 $22,500 Year 2 7,500 Year 3 45,000 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) $ $ $...
Oceanic Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of...
Oceanic Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends: Year 1 - $50,000, Year 2 - $12,500, Year 3 - $75,000. 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'.
Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 2% stock, $150 par and...
Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $150,000 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'. Preferred Stock (dividends per share) Common Stock (dividends per share) Year 1 $ $...
Zero Calories Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 100,000 shares...
Zero Calories Company has 15,000 shares of cumulative preferred 1% stock, $50 par and 100,000 shares of $10 par common stock. The following amounts were distributed as dividends: 20Y1 $28,500 20Y2 6,000 20Y3 110,000 Determine the dividends per share for preferred and common stock for each year. If an answer is zero, enter '0'. Round all answers to two decimal places.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT