Reference no: EM132847546
Question - Following the shareholders section of the balance sheet of Wyatt Company as at October 31, 2020:
Preferred shares, cumulative and fully participating, authorized 122,000 shares, issued 35,000 shares $800,000
Common shares, authorized 500,000 shares, issued 83,000 shares $1.200.000
Total contributed capital $2.000.000
Retained earnings 1.857.500
Total shareholders ' equity $ 3.857.500
The preferred shares pay dividends of $1.10 per share. No dividends were declared or paid during the year ended October 31, 2020. The company declared a dividend of $ 175,000 on October 4, 2021, to be distributed on October 31, 2021 to the shareholders of record on October 22, 2021. No shares have been issued or repurchased since October 31, 2020.
Required - Calculate the amount of the $175,000 to be paid to each group of the shareholders (i.e preferred and common).