When H Corp was organized in 1/14, it immediately issued 5,300 shares of $47 par, 7 percent, cumulative preferred stock and 9,500 shares of $8 par common stock. The companys earnings history is as follows: 2014, net loss of $16,400; 2015, net income of $59,500; 2016, net income of $111,100. The corporation did not pay a dividend in 2014.

How much is the dividend arrearage as of 1/1/15?

Assuming a $48,874 dividend is declared at the end of 2015, what is the amount of 2014 Arrearage? What is the 2015 Preferred dividends amount?

Chapter 8 HW