[maricemagdolot]

ALLOCATION OF DIVIDENDS BETWEEN PREFERENCE SHARE AND ORDINARY SHARE

The shareholder's equity accounts of Lucky Corporation on Dec. 31, 2012 are as follows:

10% Preference share capital,5000 shares, 50 par 250000
Ordinary share, 100 par 500000
Additional paid in capital 100000
Retained earnings 200000

Cash dividends were declared on this date. Dividends were last declared on Dec. 31, 2010

REQUIRED:

Compute for the total dividends and dividend per share on preference share capital and ordinary share capital under each of the following independent assumptions:

(a) The preference share is cumulative and participating and the amount of dividend declared is 130000.

(b) The preference share is non-cumulative and participating and the amount of dividend declared is 60000.

(c) The preference share is non-cumulative and participating and the amount of dividend declared is 35000.

(d) The preference share is cumulative and participating and the amount of dividend declared is 60000.

(e) The preference share is non-cumulative and non-participating and the amount of dividend declared is 60000.

Please help me. Thank you.