Question

Dividends Per Share Seacrest Company has 20,000 shares of cumulative preferred 3% stock, $100 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year 1 $150,000 Year 2 30,000 Year 3 180,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter 'o'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) Common stock (Dividends per share)

The chart is for the 3rd question.

Answer 1

Solution 1]

		DIVIDEND YIELD				dividend per year
pref share	20,000.00	3%	par value	100.00	20,00,000.00	60,000.00
common stock	50,000.00	-	par value	10.00	5,00,000.00	-
			TOTAL DIVIDEND	TOTAL DIVIDEND		DIVIDEND PER SHARE	DIVIDEND PER SHARE
	Revenue		pref share	common stock		pref share	common stock
year 1	1,50,000.00		60,000.00	90,000.00		3.00	1.8
year 2	30,000.00		30,000.00	-		1.50	0
year 3	1,80,000.00		90,000.00	90,000.00		4.50	1.8

Solution 2]

DATE	PARTICULARS	DEBIT AMT	CREDIT AMT
Jan-22	CASH A/C	10,80,000.00
	TO COMMON STOCK		10,80,000.00
	[BEING COMMON STOCK ISSUED @ 40$ PER SHARE]
Feb-14	CASH A/C	6,00,000.00
	TO 6% PREF SHARES		6,00,000.00
	[BEING 6% PREF SHARES ISSUED @ 60$ PER SHARE]
Aug-30	CASH A/C	15,18,000.00
	TO 6% PREF SHARES		13,80,000.00
	TO SECURITIES PREMIUM A/C		1,38,000.00
	[BEING 6% PREF SHARES ISSUED AT PREIMUM OF 6$ AND A PAR VALUE OF 60$]

Solution 3]

STOCK HOLDER'S EQUITY
Paid-in capital:
Common stock, 70$ par ( 40000 authorised, 24000 issued)	16,80,000
Excess over par	3,84,000
Paid-in capital, common sttock		20,64,000
From sale of treasury stock		84,000
Total paid-in capital			21,48,000
Retained earnings			9,07,000
Total			30,55,000
Treasury stock			41,000
TOTAL STOCK HOLDER'S EQUITY			30,96,000