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

Lawver Electronics Inc. has 8,000 shares of \(\$ 150\) par, \(12 \%\) cumulative preferred stock outstanding and 15,000 shares of \(\$ 2\) par value common stock outstanding. The company began operations on January 1, 2007. The cash dividends declared and paid during each of the first 3 years of Lawver's operations are shown below. Calculate the amounts that went to the preferred shareholders and the common shareholders (SHs) each year.

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Year Total Dividends Dividends to Paid Preferred SHS Dividends to Common SHs 2007 $150,000 2008 125,000 2009 176,000