Acc101 Financial Accounting: E11-4 A portion of the stockholders' equity section

Acc101 Financial Accounting

E11-4
A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows:
Stockholders' equity:
Preferred stock, 9% cumulative, $50 par, 40,000 shares authorized and issued 2,000,000
Preferred stock, 12% noncumulative, $100 par, 8,000 shares authorized and issued 800,000
Common stock, $5 par, 400,000 shares authorized and issued 2,000,000
Total paid-in capital $4,800,000

Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation.
During the third year, Walland Corporation paid total cash dividends of $736,000

Instructions:
a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock.
b. Compute the dividends paid per share during the third year for each of the three classes of stock.
c. What was the average issue price of each type of preferred stock?
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