Eastern Communications has the following shareholders equity: Eastern Communications Shareholders Equity Share Capital: Preferred Shares, 15%, unlimited
Question:
Eastern Communications has the following shareholders’ equity:
Eastern Communications Shareholders’ Equity
Share Capital:
Preferred Shares, 15%, unlimited number of shares authorized
28,000 shares issued and outstanding.......... $ 280,000
Common Shares, 500,000 shares authorized
320,000 shares issued and outstanding........ 710,000
Total Share Capital................. 990,000
Retained Earnings................. 160,000
Total Shareholders’ Equity..............$1,150,000
Requirement
Assume the preferred shares are cumulative. Compute the amount of dividends to preferred and common shareholders for 2014 and 2015 if total dividends are $36,000 in 2014 and $51,000 in 2015.
Step by Step Answer:
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper