Reference no: EM133674902
Question
Aylmer Enterprises Inc. reported the following shareholder's equity at December 31, Y4: Preferred Shares, $4, no par value, 100,000 shares authorized, $1,367,499 cumulative and fulling participating, 20,000 shares issued and outstanding. Common Shares, no par value, 100,000 shares authorized, 833,928 80,000 shares issued and outstanding. Contributed Surplus (retirement of Common Shares) 120,000 XXXX Retained Earnings 2,218,248 The following transactions took place in Y5: 2/28/Y5 Retired 9,000 common shares at $15 per share 3/3/Y5 Declared and distributed a 3% common stock dividend. The market value of the shares at that time was $12.00 per share. 4/30/Y5 The company decided to sell additional shares through a subscription basis. The offering was 5,000 common shares at $12 per share with 40% down. The balance is due on May 31st. All shares were subscribed for during the offering period. 7/10/Y5 The board voted for a 3-for-1 common stock split. 11/30/Y5 Aylmer declared a total dividend of $233,500 to be split between the preferred and common shareholders The dividend will be paid January 14, Y6. In your entry, show the calculation of how the dividend should be split between preferred and common shareholders. Other Information: Net income for Y5 was $583,900 No dividends were declared.