The Stockholders’ Equity category of Rausch Company’s as of December 31, 2017, appeared as follows:
Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding ……..$ 200,000
Common stock, $10 par, 40,000 shares issued and outstanding……………… 400,000
Additional paid-in capital …………………………………………………………………………500,000
Total contributed capital ……………………………………………………………………..$1,100,000
Retained earnings ……………………………………………………………………900,000
Total stockholders’ equity ………………………………………………………..$2,000,000
The notes to the indicate that dividends were not declared or paid for 2015 or 2016. Rausch wants to declare a of $118,000 for 2017.
Required
Determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions:
1. The preferred stock is noncumulative, nonparticipating.
2. The preferred stock is cumulative, nonparticipating.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com