Question
Sandhill Corporation was organized on January 1, 2019. During its first year, the company issued 2,000 shares of HK$50 par value preference shares and 125,000
Sandhill Corporation was organized on January 1, 2019. During its first year, the company issued 2,000 shares of HK$50 par value preference shares and 125,000 shares of HK$10 par value ordinary shares. On December 31, the company declared the following cash dividends: 2019, HK$5,000; 2020, HK$14,200; and 2021, HK$29,700 (HK$ in thousands).
Show the allocation of dividends to each class of shares, assuming the preference share dividend is 7% and non-cumulative.
2019 | 2020 | 2021 | |
Allocation to preferred shares | HK$ enter a dollar amount | HK$ enter a dollar amount | HK$ enter a dollar amount |
Remainder to ordinary shares | HK$ enter a dollar amount | HK$ enter a dollar amount | HK$ enter a dollar amount |
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
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