Ellie Company provided the following shareholders' equity on December 31, 2020: Preference share capital, P100 par, 96,000 shares issued, 12% cumulative and fully participating Ordinary share capital, P50 par, 240,000 shares issued Share premium Retained earnings 9,600,000 12,000,000 6,000,000 8,400,000 Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to be declared for the preference and ordinary shareholders?

Ellie Company provided the following shareholders' equity on December 31, 2020: Preference share capital, P100 par, 96,000 shares issued, 12% cumulative and fully participating Ordinary share capital, P50 par, 240,000 shares issued Share premium Retained earnings 9,600,000 12,000,000 6,000,000 8,400,000 Dividends on the preference shares are in arrears for two years including the current year. On December 31, 2020, the entity intends to pay cash dividend of P10 per share to the ordinary shareholders. What is the total amount of dividends to be declared for the preference and ordinary shareholders?

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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