York’s outstanding stock consists of 46,000 shares of noncumulative 7.20% preferred stock with a $10 par value and also 115,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:

York’s outstanding stock consists of 46,000 shares of noncumulative 7.20% preferred stock with a $10 par value and also 115,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 
2015    $    26,000  
2016         31,120  
2017         110,000  
2018         192,000  
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.)

Explanation:

	Non-Cumulative Preferred		Common
2015 ($26,000 paid)
Preferred*	$	26,000
Common—remainder			$	0
Total for the year	$	26,000	$	0
2016 ($31,120 paid)
Preferred*	$	31,120
Common—remainder			$	0
Total for the year	$	31,120	$	0
2017 ($110,000 paid)
Preferred*	$	33,120
Common—remainder			$	76,880
Total for the year	$	33,120		76,880
2018 ($192,000 paid)
Preferred*	$	33,120
Common—remainder			$	158,880
Total for the year	$	33,120	$	158,880
2015-2018 ($359,120 paid)
Total for four years	$	123,360	$	235,760

  
 

* The holders of the noncumulative preferred stock are entitled to no more than $33,120 of dividends in any    one year (7.20% × $10 × 46,000 shares).

York’s outstanding stock consists of 49,000 shares of cumulative 7.50% preferred stock with a $10 par value and also 122,500 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. 
2015    $    29,000  
2016         31,125  
2017         74,250  
2018         111,750  
 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.)
 

Explanation:

	Cumulative Preferred		Common
2015 ($29,000 paid)
Preferred*	$	29,000
Common—remainder			$	0
Total for the year	$	29,000	$	0
(Note: $7,750 in preferred stock dividends in arrears.)
2016 ($31,125 paid)
Preferred—arrears from 2015	$	7,750
Preferred*	$	23,375
Common—remainder			$	0
Total for the year	$	31,125	$	0
(Note: $13,375 in preferred stock dividends in arrears.)
2017 ($74,250 paid)
Preferred—arrears from 2016	$	13,375
Preferred*	$	36,750
Common—remainder			$	24,125
Total for the year	$	50,125		24,125
(Note: $0 in preferred stock dividends in arrears.)
2018 ($111,750 paid)
Preferred*	$	36,750
Common—remainder			$	75,000
Total for the year	$	36,750	$	75,000
(Note: $0 in preferred stock dividends in arrears.)
2015-2018 ($246,125 paid)
Total for four years	$	147,000	$	99,125

  
 

* The holders of the cumulative preferred stock are entitled to no more than $36,750 of dividends declared in    any year (7.50% × $10 × 49,000 shares) plus any dividends skipped in prior years.