ctions. ems: Series B ar 3: PR 13-1B Dividends on preferred and common stock OBJ.3 Black Bear Bike Corp. manufactures mountain bikes and distributes them through retail out- lets in California, Oregon, and Washington. Black Bear Bike Corp. has declared the following annual dividends over a six-year period ended December 31 of each year: Year 1, $42,500; Year 2, $18,000; Year 3, $223,500; Year 4. $178,000; Year 5. $222,000; and Year 6, $222,000. During the entire period, the outstanding stock of the company was composed of 50,000 shares of cumulative preferred 2% stock, $80 par, and 100,000 shares of common stock, $4 par. Instructions 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, Year 1. Summarize the data in tabular form, using the following column headings: (Continued) Chapter 13 Corporations: Organization, Stock Transactions, and Dividends Preferred Dividends Total Per Share Common Dividends Total Per Share Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividends $ 42,500 18,000 223,500 178,000 222,000 222,000 2. Determine the average annual dividend per share for each class of stock for the six- year period. 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. 081) PR 13-2B Stock transaction for corporate expansion Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balt ances appear in the ledger of Pulsar Optics on April 30 of the current year as follows: Preferred 1% Stock, $120 par (300,000 shares authorized, 36,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock $ 4,320,000 180,000