14 Sweet Company's outstanding stock consists of 1,800 shares of cumulative 4% preferred stock with a $100 par value and 10,800 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared an d the following total cash dividends. 8 02:55:00 Dividends Declared & Paid $ 2,800 $ 6,800 $36,000 Year 1 Year 2 Year 3 The amount of dividends paid to preferred and common shareholders in year 3 is: Multiple Choice O $24600 preferred. 54,400 common O $36.000 preferred so common C) 512.000 preferred: $24,000 common o oo C 2200 preferred 28.800 common 15 Ultimate Sportswear has $200,000 of 8% noncumulative, nonparticipating preferred stock outstanding. Ultimate Sportswear also has $600,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $40,000. This dividend should be distributed as follows: & one 32 Multiple Choice $0 preferred $40.000 common. 520000 preferred: 20.000 common. 521000 preferred, $10.000 comon $10000 preferred 10000 common. 2 16 - Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 31,000 shares authorized, 15,600 shares issued and 12.400 shares of common stock outstanding. The journal entry to record the dividend declaration is: 2014 O Debit Common Dividends Payable $2.800 Credit Cash $7.000 O Debit Retained Earnings $15.500 Credit Common Dividends Payable $15.500 o Debt Retained Earings 56,200, Credit Common Didends Payable 56.200 O Debit Retained Earnings $7.800Credit Common Dividends Payable $7.000 O Debit Common Dividends Payable $6.200; Credit Cash $6.200