Homework 14-2

Sunset has 10,000 outstanding shares of 5%, $10 par preferred stock and 100,000 shares of $1.50 par common stock outstanding. During a three year period, Sunset declared and paid cash

dividend as follows: 2023 of $1,000; 2024 of $4,000 and 2025 of $25,000.

a. Compute the total dividends to preferred and common for each if the three years if

the preferred stock is:

1. Cumulative

Preferred Dividend:

2.Noncumulative

Preferred Dividend:

3.Prepare the journal entry to record the 2015 dividend declaration and payment from number 2 above.

3. Prepare the journal entry to record the 2025 dividends declaration, and payment from Number 2 above. Homework 14-2 Sunset has 10,000 outstanding shares of 5%,$10 par preferred stock and 100,000 shares of $1.50 nor mmman etund nutetandine nurine s three vear nerind Suncet derlared and naid cash