I. Cajun Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10 par value common. The schedule below shows the amount of dividends paid out over the last 4 years.

Allocate the dividends to each type of stock under assumptions (a) and (b).

Year	Dividend Paid	(a) Preferred stock is non-cumulative & non-participating	(b) Preferred stock is cumulative & non participating
Pref	Comm	Pref	Comm.
20x1	13,000
20x2	26,000
20x3	57,000
20x4	76,000

II. Some of the account balances of Mali Company at December 31, 20x0 are shown below:

6% Preferred Stock ($100 par, 2,000 shares authorized) $ 20,000

PCIEP, Preferred 3,000

Common Stock ($10 par, 100,000 shares authorized) 500,000

PCIEP, Common 100,000

Retained Earnings 304,000

Treasury Stock-Preferred (50 shares at cost) 5,500

Treasury Stock-Common (1,000 shares at cost) 16,000

The price of the companys common stock has been increasing steadily on the market; it was $21 on January 1, 20x1, advanced to $24 by July 1, and to $27 at the end of the year 20x1. The preferred stock was not openly traded, but was appraised at $120 per share during 20x1.

• Give the proper journal entries for each of the following occurred in 20x1:

The company declared a property dividend on April 1. Each common stockholder was to receive one share of Washington for every 10 shares outstanding. Mali had 8,000 shares of Washington (2% of total outstanding stock) which was purchased a few weeks ago for $68,400. The market value of Washington stock was $16 per share on April 1. Record appreciation only on the shares distributed.

(2) The company resold the 50 shares of preferred stock held in the treasury for $116 per share.

On July 1, the company declared a 5% stock dividend to the common stockholders.

On October 1, the company incurred a fire loss of $7,000 to its warehouse (ordinary loss).

On October 15, the company declared a cash dividend of $100,000. Assume the preferred stock is non-cumulative.

2) Prepare the stockholders equity section of the balance sheet at December 31, 20x1