In: Accounting
The guns per share 72 inc a developer of radiology equipment has stock outstanding as follows 80000 shares of cumulative preferred 3% stock $20 park and 405000 shares of $25 par common during its 1st 4 years of operations the following amounts were distributed as dividends 1st year $33000 2nd years $76000 3rd year $90000 for theor $100000 determine the dividends per share on each class of stock for each of the 4 years
Year 1 | Year 2 | Year 3 | Year 4 | ||
Preferred Stock (dividend per share) | $ 0.41 | $ 0.60 | $ 0.60 | $ 0.60 | |
Dividend Stock (dividend per share) | 0 | $ 0.07 | $ 0.10 | $ 0.13 | |
Workings: | |||||
Dividend for preference shareholders | = | 80000 shares X $20 X 3% | |||
= | 48000 | ||||
Preferred Stock | Dividend Stock | Total | Arrears | ||
(i) | (ii) | ||||
Year 1 | $ 33,000 | 0 | $ 33,000 | 15000 | |
Year 2 | $ 48,000 | $ 28,000 | $ 76,000 | ||
Year 3 | $ 48,000 | $ 42,000 | $ 90,000 | ||
Year 4 | $ 48,000 | $ 52,000 | $ 1,00,000 | ||
Preferred Stock | Dividend Stock | ||||
(i) / 80000 | (ii) / 405000 | ||||
Year 1 | $ 0.41 | 0 | |||
Year 2 | $ 0.60 | $ 0.07 | |||
Year 3 | $ 0.60 | $ 0.10 | |||
Year 4 | $ 0.60 | $ 0.13 |