Distribute dividend between preferred and common shareholders. (LO 2)

Framer Company has 4,000 shares of \(9 \%, \$ 100\) par, cumulative preferred stock outstanding and 10,000 shares of \(\$ 1\) par value common stock outstanding. The company began operations on January 1, 2008. The cash dividends declared and paid during each of the first 3 years of Framer's operations are shown. Calculate the amounts that went to the preferred and the common shareholders (SHs) each year.

Transcribed Image Text:

Year 2008 2009 Total Dividends Paid $120,000 60,000 2010 80,000 Dividends to Preferred SHs Dividends to Common SHS