Sir Win – Accounting Lectures

 Jokes  Tagalog
 Stories  Legit Professor
 Life Lessons

--------------------------------------------------------------------------------------
-------------------
Lecture 14: Dividends on Preference Share
--------------------------------------------------------------------------------------
-------------------
Lovely Incorporated has the following selected accounts in its
shareholder’s equity:

12% Preference Shares, P100 par,

authorized 20,000 shares, 2,000 shares
issued and outstanding 200,000
Ordinary Shares, P100 par, authorized
10,000 shares, 3,000 shares issued and
Outstanding 300,000
Share Premium – ordinary 100,000
Share Premium – preference 150,000
Retained Earnings 700,000

The board failed to declare dividends for the past two years. The
current year’s results of operations gave the board reasons to declare
cash dividends of 200,000.

Required: Compute for dividends per share for preference share

and ordinary share assuming that preference share is:

1. Non-Cumulative and Non-Participating

2. Cumulative and Non-Participating

3. Non-Cumulative and Participating

4. Cumulative and Participating