Question #2 (3 points ) The stockholders’ equity section of the XYZ Corporation’
ID: 2581429 • Letter: Q
Question
Question #2 (3 points) The stockholders’ equity section of the XYZ Corporation’s balance sheet shows these balances in the capital stock accounts:
Preferred Stock 5% $100 par cumulative $100,000.
Common Stock $1 Par $ 1,000,000.
The board of directors made the following dividend declarations and payments:
2013 $ 0
2014 $120,000
2015 $200,000
Required: Prepare a schedule showing the distribution of the dividends between preferred and common stockholders for all three years. Also indicate the dividend per share as well.
Explanation / Answer
Dividend Dividend Declared Preferred Stock Dividend Per Share Preferred Common Stock Dividend Per Share Common Stock Arrears on Preferred Stock 2013 0 0 0 0 0 5000 2014 120000 10000 10 110000 0.11 0 2015 200000 5000 5 195000 0.20 0