The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. 29.The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (a) P27,000 (b) P25,000 (c) P22,000 (d) P21,000 30.The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 31.The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000
The Merry Corporation has the following classes of stock outstanding: Common stock, par value P100 6% preferred stock, par value P100 P300,000 100,000 Retained earnings of P48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding two years. 29.The total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating, would be: (a) P27,000 (b) P25,000 (c) P22,000 (d) P21,000 30.The total dividends to be given to common stock, if preferred stock is cumulative and fully participating, would be: (a) P23,000 (b) P26,000 (c) P29,000 (d) P27,000 31.The total dividends to be given to preferred stock, if preferred stock is non- cumulative and fully participating, would be: (a) P15,000 (b) P14,000 (c) P11,000 (d) P12,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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Answer 29-31
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