Griseta Corporation was organized on January 1, 2011 During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock At December 31, the company declared the following cash dividends 2011, $6,000 2012, $12,000 and 2013, $2...

a 2011 2012 2013 Total dividend Allocation to preferred stock Remainder to common stock 6 ...

Griseta Corporation was organized on January 1, 2011. During its first year, the corporation issued 2,000 shares

Question:

Griseta was organized on January 1, 2011. During its first year, the issued 2,000 shares of $50 preferred stock and 100,000 shares of $10 common stock. At December 31, the company declared the following cash dividends: 2011, $6,000; 2012, $12,000; and 2013, $28,000.
Instructions
(a) Show the allocation of dividends to each class of stock, assuming the preferred stock is 7% and not cumulative.
(b) Show the allocation of dividends to each class of stock, assuming the preferred stock is 8% and cumulative.
(c) Journalize the declaration of the cash at December 31, 2013, under part (b).

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...