Vogue Skincare has 5,000 outstanding shares of 5%, $20 par preferred stock and 100,000 shares of...

Question

Vogue Skincare has 5,000 outstanding shares of 5%, $20 par preferred stock and 100,000 shares of $1.50 par common stock outstanding. During a three year period,
 Vogue declared and paid cash dividends as follows: 2010 of $4, XXXXXXXXXXof $10,000; and 2012 of $20, XXXXXXXXXXCompute the total dividends to preferred and common for
 each of the three years if the preferred stock is: a. Cumulative b. Non cumulative 2. For case 1a, journalize the declaration of the 2012 dividend on December 22,
 2012, and payment on January 14, 2013.

David · Accepted Answer

Calculation of Dividend, If the Preferred stock is Non - Cumulative
	Calculation of Dividend, If the Preferred stock is Non - Cumulative
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	Total Dividend on Pref Stock = 5,000*20*0.05
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	Year
	Total Div Declared
	Pref Div
	Equity Dividend
	
	
	
	
	
	
	
	
	
	
	2010
	$                4,000.00
	$          4,000.00
	$                     -  
	
	
	
	
	
	
	
	
	
	
	2011
	$              10,000.00
	$          5,000.00
	$           5,000.00
	
	
	
	
	
	
	
	
	
	
	2012
	$              20,000.00
	$          5,000.00
	$          15,000.

Vogue Skincare has 5,000 outstanding shares of 5%, $20 par preferred stock and 100,000 shares of $1.50 par common stock outstanding. During a three year period, Vogue declared and paid cash dividends...

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