P12-32A

P12-32A Computing dividends on preferred and common stock 

Fashonista Skincare has 10,000 shares of 3%, $20 par value preferred shares and 90,000 shares of $2 par ordinary shares outstanding. In a three-year time period, Fashionista announced and paid cash payouts as follows: 2010, $3,000; 2011, $13,000; and 2012, $17,000. 

Requirements

1. Calculate the total dividends to      preferred and to common for each of the 3 years if

a. preferred is noncumulative.

b. preferred is cumulative.

1. For requirement 1.b., journalize the      declaration of the 2012 dividends on December 22, 2012, and payment on      January 14, 2013. Use separate Dividends payable accounts for preferred      and common.