Accounting- Shares and Dividends

[Ivanthedumbfck]

Hey I'm back :-D from semester break and back in class. I'm struggling with this 1 problem.

At the beginning of its first year of operations, Northwoods Limited has 5,000, $4 preferred shares and 50,000 common shares. Using the format shown below, allocate the total dividend paid in each year to the preferred and common shareholders, assuming that the preferred shares are (a) noncumulative, and (b) cumulative.

I have the answers filled in, but I'm struggling to get the answers. They were all blank at first except the entries under Dividend Paid.

		(a)		(b)
Year	Dividend Paid	Noncumulative Preferred	Common		Cumulative Preferred	Common
1.	$20,000	$ 20,000	$ 0		$ 20,000	$ 0
2.	15,000	15,000	0		15,000	0
3.	30,000	20,000	10,000		25,000	5,000
4.	35,000	20,000	15,000		20,000	15,000

For 1. i got Regular dividend is $4 × 5,000 = $20,000 then i couldn't find the rest.

The homework gave vague solutions:

1. Regular dividend is $4 × 5,000 = $20,000
2b. Arrears = $20,000 − $15,000 = $5,000
3b.Preferred dividend = $20,000 (regular) + $5,000 (arrears) = $25,000

 

[Ivanthedumbfck]

Nobody missed you

I know, the only person that misses me is my professor who wants to torture me with 3 hour homework every night lol. I go to starbucks to get a coffee to chill out.


Actually under dividend paid, the entries were filled in. Everything under noncumulative preferred(a), common(a), cumulative preferred(b), common(b) were blank.

The homework gave vague solutions:

1. Regular dividend is $4 × 5,000 = $20,000
2b. Arrears = $20,000 − $15,000 = $5,000
3b.Preferred dividend = $20,000 (regular) + $5,000 (arrears) = $25,000

 

[Ivanthedumbfck]

Hey i got help from my professor, so i know how to do it