Question

Dividends Per Share Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $160 par, and 67,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $64,400; second year, $137,600; third year, $171,250; fourth year, $198,510. Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

Answer 1

1-
Year	1	2	3	4
total dividend	64400	137600	171250	198510
preferred dividend-Paid	64400	127600	96000	96000
preferred dividend Accumulated	31600	0	0	0
common dividend	0	10000	75250	102510
Year	1	2	3	4
Preferred dividend-paid	64400	127600	96000	96000
no. of preferred stock outstanding	20000	20000	20000	20000
preferred dividend per share = preferred dividend paid/no. of preferred stock outstanding	3.22	6.38	4.8	4.8
Year	1	2	3	4
common dividend paid	0	10000	75250	102510
no. of common stock outstanding	67000	67000	67000	67000
common dividend per share = common dividend paid/no.of common stock outstanding	0.00	0.15	1.12	1.53
2-
Date	explanation	debit	credit
1-	retained earning	21700
	stock dividend distributable		21700
2-	stock dividend distributable	21700
	common stock		17500
	additional paid in capital		4200
before the stock dividend was declared
total paid in capital	175000+35000	210000
total retained earning		1925000
total stockholders equity		2135000
After the stock dividend was declared
total paid in capital	(175000+17500)+(35000+4200)	231700
total retained earning	1925000-21700	1903300
total stockholders equity		2135000
3-
Earning		401700
preferred dividend	3900*6	23400
earning to common stock holders		378300
no. of common stock		39000
basic earning per share	378300/39000	9.7
4-
Dakota
Year	1	2
EPS = net income/common share outstanding	6.29	3.66
net income	3765	2172
common shares outstanding	599	594
Jersey
Year	1	2
EPS = net income/common share outstanding	8.71	5.70
net income	3162	1905
common shares outstanding	363	334
1-	Jersey
2-	Dakota
3-	Declined
4-	decrease
5-	Jersey