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

Tri State Supply, Inc., has the following stockholders’ equity:

Tri State Supply, Inc.

Stockholders’ Equity Paid-in Capital:

Preferred Stock, 8%, $12 par, 100,000 shares authorized, 25,000 shares issued and outstanding Common Stock, $1.00 par, 500,000 shares authorized, 280,000 shares issued and outstanding Paid-in Capital in Excess of Par-Common Total Paid-in Capital Retained Earnings Total Stockholders’ Equity

$ 300,000 280,000 410,000 990,000 216,000

$1,206,000 Requirement 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2014 and 2015 if total dividends are

$18,600 in 2014 and $42,800 in 2015.

AppendixLO1