Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 200,000 shares of $5 par value common stock. At December 31, the company declared the following cash dividends:

December2017 $80,000

December2018 195,000

December2019 300,000

Required:

1. Show the allocation of dividends to each class of stock, assuming that the

preferred stock is 9% and not cumulative.

2. Show the allocation of dividends to each class of stock, assuming that the

preferred stock is 10% and cumulative.