ACCT Problems

Question 5

(Preferred Dividends)

Martinez Company's ledger shows the following balances on December 31, 2012.

	5% Preferred stock-$10 par value, outstanding 22,280 shares	$222,800
	Common stock-$100 par value, outstanding 33,420 shares	3,342,000
	Retained earnings	701,820

Assuming that the directors decide to declare total dividends in the amount of $296,324, 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.

Preferred

Common

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