Accounting for cash dividends (Learning Objective 4) 10–15 min.

The following elements of stockholders’ equity are adapted from the balance sheet of Wolfe Corporation.

Preferred Stock, cumulative, $5 par (Note 7), 60,000 shares issued and outstanding Common Stock, $0.25 par, 10,000,000 shares issued and outstanding

$ 300 2,500 Wolfe Corporation paid no preferred dividends in 2014, but paid the designated amount of cash dividends per share to preferred shareholders in all prior years.
Requirement 1. Compute the dividends to preferred and common shareholders for 2015 if total dividends are $190,000.AppendixLO1