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  • May 27, 2008, 06:26 PM
    Elaine09
    Accounting for stocks
    Capital Stock Structure is as follows:

    Preferred Stock-10% cumulative; participating to the extent of 3% above preference rate; par value $100; authorized, 50,000 shares, issued, 10,000 shares.

    Common stock-Par value $100;authorized, 100,000 shares; issued, 10,000 shares.

    Total dividend payments made during the first 5 years:
    Year 1 $210,000 Total Dividend payment
    Year 2 280,000 Total Dividend payment
    Year 3 40,000 Total Dividend payment
    Year 4 370,000 Total Dividend Payment
    Year 5 250,000 Total Dividend Payment

    The total preferred dividend payment in year one was: $100,000: $105,000: $110,000: or $130,000.

    In year 5 the common dividend paid was:

    $100,000: $125,000: $120,000: or $150,000

    A preferred dividend arrearage was paid in:

    Year 1: Year 2: Year 3 or Year 4

    The 3% participation dividend paid on preferred stock in year 2 was:

    $10,000: $30,000: $20,000 or $40,000.

    If you can show me the calculations to arrive at the answers for these questions, it would be greatly appreciated.

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