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Northern Communications has the following stockholders' equity on December 31, 2018: Stockholders' Equity Paid-In Capital: Preferred Stock5%, $11 Par Value; 150,000 shares authorized, 20,000 shares
Northern Communications has the following stockholders' equity on December 31, 2018:
Stockholders' Equity
Paid-In Capital:
Preferred Stock5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding
$220,000
Common Stock$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding
760,000
Paid-In Capital in Excess of ParCommon
680,000
Total Paid-In Capital
1,660,000
Retained Earnings
200,000
Total Stockholders' Equity
$1,860,000
PAY NO MIND TO THE NUMBERS ALREADY INPUTTED. They are most likely wrong.
Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $9,000 in 2018 and $45,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "O" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) Northern's 2018 dividend would be divided between preferred and common stockholders in this manner: 9000 Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders 8800 (9000) Dividend to common stockholdersStep by Step Solution
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