Acc280 Financial Accounting: E14-2 Knudsen Corporation was organized on January 1, 2013

Note: There are other variation of the original textbook problem where the numbers/amounts will be different - so you need to make sure you take the time to COMPARE your requirements and what is shown in the website/below. However, if you review the solution we provided below, you can follow and understand how the answers were derived by checking the worksheet cell formulas and links as well as the notes and explanations indicated in the solution.

Acc280 Financial Accounting

E14-2
Knudsen Corporation was organized on January 1, 2013. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 109,600 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2013, $6,000; 2014, $14,500; and 2015, $28,000.

Instructions
a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and non cumulative.
b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative.
c. Journalize the declaration of the cash dividend at December 31, 2015, under part (b). Note: There are other variation of the original textbook problem where the numbers/amounts will be different - so you need to make sure you take the time to COMPARE your requirements and what is shown in the website/below. However, if you review the solution we provided below, you can follow and understand how the answers were derived by checking the worksheet cell formulas and links as well as the notes and explanations indicated in the solution.

E14-2
Knudsen Corporation was organized on January 1, 2013. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 109,600 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2013, $6,000; 2014, $14,500; and 2015, $28,000.

Instructions
a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and non cumulative.
b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 8% and cumulative.
c. Journalize the declaration of the cash dividend at December 31, 2015, under part (b).
Powered by