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Computation of Common stock dividend.
Reiner Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2008. These data apply to each of the independent situations below.
Assuming that total dividends declared in 2008 were $45,000, that the cumulative preferred stock was issued on January 1, 2007, and that $10,000 of preferred dividends were declared and paid in 2007, the common stockholders should receive 2008 dividends totaling.
Preparation of financial statements
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