Splish Company's ledger shows the following balances on December 31, 2025.
7% Preferred stock -$10 par value, outstanding 21,200 shares $212,000
Common stock -$100 par value, outstanding 32,100 shares ,3,210,000
Retained earnings
651,000
Assuming that the directors decide to declare total dividends in the amount of $396,000, determine how much each stass
should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.
a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278.
Round answers to 0 decimal places, e.g. 38,487 .)
Preferred
$
$
b. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487 .)
Common
$
Preferred
$
Common
$
c. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock.
Splish Company's ledger shows the following balances on December 31,2025
7%Preferred stock-$10par value,outstanding21,200 shares
$212,000
Common stock-$100 par value,outstanding 32,100 shares
3,210,000
Retained earnings
651,000
Assuming that the directors decide to declare total dividends in the amount of $396,000,determine how much each class of stock
should receive under each of the conditions stated below.One year's dividends are in arrears on the preferred stock
a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to 0 decimal places, e.g. 38,487.)
Preferred
Common
$
52374
326688
b. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.)
Preferred
Common
14840
381160
c. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock
