Question
Problem 12-5A Dividend allocation LO5 Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31,
Problem 12-5A Dividend allocation LO5
Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020.
Preferred shares, $4.47 non-cumulative,44,000 shares authorized and issued*$2,816,000Common shares,79,000 shares authorized and issued*1,264,000
*All shares were issued during 2018.
During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown in the last column of the following schedule.
Required:
Part A
1.Calculate the total dividends paid in each year to the preferred and to the common shareholders.
Year Preferred Dividend Common Dividend Total Dividend
2018 $159,0000
2019 $399,000
2020 $559,000
Total of three years $1,117,000
2.Calculate the dividends paid per share to both the preferred and the common shares in 2020.(Round the final answers to 2 decimal places.)
Dividends Paid per share
Preferred Shares
Common Shares
Part B
1.Calculate the total dividends paid in each year to the preferred shares and to the common shareholders assuming preferred shares arecumulative.
Year Preferred Dividend Common Dividend Total Dividend
2018 $159,0000
2019 $399,000
2020 $559,000
Total of three years $1,117,000
2.Calculate the dividends paid per share to both the preferred and the common shares in 2020 assumingpreferred shares are cumulative.(Round the final answers to 2 decimal places.)
Dividends Paid per share
Preferred Shares
Common Shares
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