On January 1, Year 1, a company had the following transactions: Determine the dividends per share for preferred & common stock for each year and show the dividend in arrears every year.

Issued 10,000 shares of $2 par common stock for $12 per share.

Issued 3,000 shares of $50 par, 6% cumulative preferred stock for $70 per share. Purchased 1,000 shares of previously issued common stock for $15 per share. The company had the following dividend information available:

Year 1 No dividend paid

Year 2 Paid $2,000 total dividends

Year 3 Paid $20,000 total dividends

Year 4 Paid $25,000 total dividends