Problem #3Dividends on Preference and Ordinary SharesThe preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31, 2019follows:8% Preference Shares, P10 par, cumulative, participating,40,000 shares authorized, 10,000 shares issuedand outstandingP100,000Ordinary Shares, P2 par, 10,000,000 shares authorized,250,000 shares issued and outstanding500,000P600,000Total Preference and Ordinary SharesRequired:Calculate the amount of dividends received by preference and ordinary shareholders,respectively, under each of the following assumptions:1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declareda total dividend of P56,000.2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividendww wwwof P66,000.3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzadadeclared a total dividend of P88,000.

Dividend on equity shares is paid, when it is declared by the company but dividend on accumulated…

1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P56,000. 2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000. 3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P88,000.

1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P56,000. 2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000. 3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P88,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...

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