Dividends Keener Company has had 800 shares of 8%, $100 par preferred stock and 44,000 shares of...

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Accounting

Dividends
Keener Company has had 800 shares of 8%, $100 par preferredstock and 44,000 shares of $5 stated value common stock outstandingfor the last 3 years. During that period, dividends paid totaled$5,400, $31,000, and $35,400 for each year, respectively.
Required:
Compute the amount of dividends that Keener must have paid topreferred shareholders and common shareholders in each of the 3years, given the following 3 independent assumptions:
If an amount is zero, enter "0".
1. Preferred stock is nonparticipating and noncumulative.
Keener Company
Schedule of Dividends
Preferred Common Total
Year 1 $ $ $
Year 2 $ $ $
Year 3 $ $ $
2. Preferred stock is nonparticipating and cumulative.
Keener Company
Schedule of Dividends
Preferred Common Total
Year 1 $ $ $
Year 2 $ $ $
Year 3 $ $ $
3. Preferred stock is fully participating and cumulative.
Keener Company
Schedule of Dividends
Preferred Common Total
Year 1 $ $ $
Year 2 $ $ $
Year 3 $ $ $

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3.8 Ratings (409 Votes)

If the preferred stock is cumulative dividends not paid in earlier years must also be paid before anything is paid out to common stockholders If the preferred stock is participating after both preferred and common stock holders receive a See Answer

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Keener Company
Schedule of Dividends

	Preferred	Common	Total
Year 1	$	$	$
Year 2	$	$	$
Year 3	$	$	$