Part A

Pheasant Corporation has 2,500 shares of 5%, $100 par value preferred stock that the company issued at the beginning of 2030. All remaining shares outstanding are common stock. The company was not able to pay dividends in 2030 or 2031, but it plans to pay dividends of $57,000 in 2032.

1. Assuming the preferred stock is noncumulative, how much of the $57,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2032?
2. Assuming the preferred stock is cumulative, how much of the $57,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2032?

Part B

Cardinal Company has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2030, its first year of operations:

January 1 Issue 100,000 shares of common stock for $15 per share. February 6 Issue 1,100 shares of preferred stock for $13 per share. October 10 Purchase 11,000 shares of its own common stock for $15 per share. November 12 Resell 5,000 shares of treasury stock at $24 per share.

Record each of these transactions.