Prepare a schedule showing the distribution of dividends

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Reference no: EM131975593

Problem

The shareholders' equity section of Crystal Company's balance sheet includes the items shown below.

Preferred stock, 6%, $100 par, 1,000,000 shares outstanding

Common stock, $1 par, 50,000,000 shares outstanding

The board of directors of Crystal declared cash dividends of $3 million, $6 million, and $50 million in each of its first 3 years of operation: 2013, 2014, 2015, respectively.

Required: Prepare a schedule showing the distribution of dividends by amount and per share of preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating.

Reference no: EM131975593

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