Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions: 1. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000. 2. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P88,000.
The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31, 2019 follows:
8%
P100,000
Ordinary Shares, P2 par , 10,000,000 shares authorized, 250 shares issued and outstanding
500,000
Total Preference and Ordinary Shares
P600,000
Required:
Calculate the amount of dividends received by preference and ordinary shareholders, respectively, under each of the following assumptions:
1. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P66,000.
2. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total dividend of P88,000.
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