BBY Corporation had both common stock and preferred stock outstanding. Information about each class of stock is as follows:

Preferred $100 Par Value 20,000 Outstanding 7% Non -Cumulative

Common 10 Par Value 600,000 Outstanding

The company paid $ 70,000, $ 400,000 and $ 550,000 in dividends in the years

2017, 2018 and 2019.

Determine the total dividends paid to the common and preferred shareholders each year.

Repeat the computations with the assumptions that the preferred stock was

cumulative and prepare the journal entry for the dividends declared and paid in 2019.

How do you show Dividends in Arrears, if any, on the Financial statements ?