Kommeri Consulting, Inc., has 9,000 shares of $6, no-par preferred stock and 60,000 shares of no-par common

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Kommeri Consulting, Inc., has 9,000 shares of $6, no-par preferred stock and 60,000 shares of no-par common stock outstanding for 2016–2018. Kommeri Consulting, Inc., declared and paid the following dividends during a three-year period: 2016, $22,000; 2017, $100,000; and 2018, $225,000.


Requirements

1. Compute the total dividends to preferred stockholders and to common stockholders for each of the three years if

a. preferred is noncumulative.

b. preferred is cumulative.

2. For requirement 1(b), journalize the declaration of the 2018 dividends on December 28, 2018, and the payment of the dividends on January 17, 2019. Use separate Dividends Payable accounts for preferred and common stock.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Financial Accounting

ISBN: 978-0134727790

5th edition

Authors: Robert Kemp, Jeffrey Waybright

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