Exercise 14-02 a-c

Crane Corporation was organized on January 1, 2019. During its first year, the corporation issued2,050shares of $50par value preferred stock and100,000shares of $10par value common stock. At December 31, the company declared the following cash dividends: 2019, $6,075; 2020, $13,900; and 2021, $28,000.

1. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is7% and noncumulative.
2. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is8% and cumulative.
3. Journalize the declaration of the cash dividend at December 31, 2021, under part (b)