Question

Super b ​Manufacturing, Inc., reported the following at December​ 31,2018​, and December​ 31, 2019​:

Super b Manufacturing has paid all preferred dividends only through 2015.

Requirement

1.	Calculate the total amounts of dividends to both preferred and common stockholders for 2018 and 2019 if total dividends are $50,000 in 2018 and $150,000 in 2019.

Begin with 2018. Calculate the total amounts of dividends to both preferred and common stockholders for

2018 if total dividends are $50,000.

Data Table

Stockholders' Equity
	Preferred stock, cumulative, $5.00 par, 4%, 80,000 shares issued	$400,000
	Common stock, $0.60 par, 9,080,000 shares issued	5,448,000

Answer 1

Paticulars	2018	2019
Preference Dividend Paid	50,000.00	30,000.00
Common stock dividend	-	120,000.00
Statementshowing Computations
Paticulars	2018	2019
Total Dividend Paid	50,000.00	150,000.00
Preference Dividend to be paid for Current year = 80,000*5*4%	16,000.00	16,000.00
Arrears for preference Dividend 2018=16000*3	48,000.00	14,000.00
Total Preference dividend to be paid	64,000.00	30,000.00
Preference Dividend Paid	50,000.00	30,000.00
Arrears of preference Dividend	14,000.00	-
Common stock dividend	-	120,000.00