Sabas company has 20,000 shares of $100 par, 1% non-cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends.

Year 1: $10,000

Year 2: $15,000

Year 3: $90,000

Determine the dividends per share for preferred and common stock for each year.

ANS:

	Year 1	Year 2	Year 3
Amount distributed
Preferred dividend (20,000 shares)
Common dividend (100,000 shares)
Dividends per share:
Preferred stock
Common stock

2. Sabas Company has 20,000 shares of $100 par, 2% non-cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:

Year 1: $10,000

Year 2: $45,000

Year 3: $90,000

Determine the dividends per share for preferred and common stock for each year.

ANS:

	Year 1	Year 2	Year 3
Amount Distributed
Preferred dividend(20,000)
Common dividend(100,000)
Dividends per share:
Preferred stock
Common stock
Current year preferred dividend in arrears