Sun Life Financial Inc. disclosed the following information in a press release:
TORONTO – (May 8, 2013) – The Board of Directors of Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced a quarterly dividend of $ 0.36 per common share, payable June 28, 2013, to shareholders of record at the close of business on May 29, 2013. This is the same amount as paid in the previous quarter. The Board also announced that the following quarterly dividends on its Class A Non- Cumulative Preferred Shares are payable on June 28, 2013, to shareholders of record at the close of business on May 29, 2013:
Series 1 ............$ 0.296875 per share
Series 2 ............$ 0.30 per share
Series 3 ............$ 0.278125 per share
Series 4 ............$ 0.278125 per share
Series 5 ............$ 0.28125 per share
Series 6R ..........$ 0.375 per share
Series 8R ..........$ 0.271875 per share
Series 10R ..........$ 0.24375 per share
Series 12R ..........$ 0.26563 per share
Required:
1. Prepare the journal entries to record the declaration and payment of dividends to common shareholders. Assume that there were 590 million common shares outstanding on May 8, 2013.
2. Prepare the journal entries to record the declaration and payment of dividends to the holders of 8 million Series 10R preferred shares.
3. All the preferred shares were issued on different dates between 2005 and 2011 at $ 25 per share. Why does Sun Life pay different dividend amounts for the different series?