Dividends on Preferred and Common Stock Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $40,000; Year 2, $50,000; Year 3, $80,000; Year 4, $230,000; Year 5, $280,000; and Year 6, $360,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of 4% preferred stock, $100 par, and 100,000 shares of common stock, $5 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1 $ 40,000 $fill in the blank 1 $ fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Year 2 50,000 fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Year 3 80,000 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Year 4 230,000 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Year 5 280,000 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 Year 6 360,000 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 $fill in the blank 25 $fill in the blank 26

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 8SPA

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Dividends on Preferred and Common Stock

Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $40,000; Year 2, $50,000; Year 3, $80,000; Year 4, $230,000; Year 5, $280,000; and Year 6, $360,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of 4% preferred stock, $100 par, and 100,000 shares of common stock, $5 par.

Instructions:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0".

Preferred Dividends

Common Dividends

Year

Total Dividends

Total

Per Share

Total

Per Share

Year 1

$ 40,000

$fill in the blank 1

$ fill in the blank 2

$fill in the blank 3

$fill in the blank 4

Year 2

50,000

fill in the blank 5

fill in the blank 6

fill in the blank 7

fill in the blank 8

Year 3

80,000

fill in the blank 9

fill in the blank 10

fill in the blank 11

fill in the blank 12

Year 4

230,000

fill in the blank 13

fill in the blank 14

fill in the blank 15

fill in the blank 16

Year 5

280,000

fill in the blank 17

fill in the blank 18

fill in the blank 19

fill in the blank 20

Year 6

360,000

fill in the blank 21

fill in the blank 22

fill in the blank 23

fill in the blank 24

$fill in the blank 25

$fill in the blank 26

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