[mybubba619]

York's outstanding stock consists of (a) 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and (b) 200,000 shares of common stock with a $1 par value. During the first four years of operation the corporation declared and paid the following total cash dividends;

2006.. . $20,000
2007.. . $28,000
2008.. . $200,000
2009.. . $350,000

Determine the amount of dividends paid each year to each of the two classes of stockholders. Also determine the total dividends paid to each class for the four years combined.

[Gator1087]

.075 x 5 x 80,000= 30,000 -preferred dividends per year
2006: 20,000 - Preferred 10,000 in arrears
2007: 28,000- preferred 12,000 in arrears
2008: 30,000+12,000+10,000= 52,000 Preferred
148,000 Common
2009: 30,000 Preferred
320,000 common
Total=120,000 preferred and 478,000 common