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The records of Hollywood Company reflected the following balances in the stockholders equity accounts at...

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Accounting

The records of Hollywood Company reflected the following balances in the stockholders equity accounts at December 31, 2013:

Common stock, par $12 per share, 50,000 shares outstanding
Preferred stock, 10 percent, par $10 per share, 5,000 shares outstanding
Retained earnings, $216,000

On September 1, 2014, the board of directors was considering the distribution of a $85,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):

a. The preferred stock is noncumulative.
b. The preferred stock is cumulative.

Required:
1.

Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under the two independent assumptions. (Round "per share" to 2 decimal places.)

image

Commorn Preferred Noncumulative Total Per share Cumulative: Total Per share

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