Transcribed Image Text: Dividends on Preference and Ordinary Shares The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31 2019 follows: 8% Preference Shares, P10 par,

Transcribed Image Text: Dividends on Preference and Ordinary Shares
The preference and ordinary shares outstanding of R. Dela Calzada, Inc. on Dec. 31
2019 follows:
8% Preference Shares, P10 par, cumulative,
participating, 40,000 shares authorized, 10,000
shares issued and outstanding
P100,000
Ordinary Shares, P2 par, 10,000,000 shares authorized,
250,000 shares issued and outstanding
Total Preference and Ordinary Shares
500,000
P600,000
Required:
Calculate the amount of dividends received by preference and ordinary shareholders,
respectively, under each of the following assumptions:
1. Preference dividends for 2018 are in arrears. On Dec. 31, 2019, R. Dela Calzada
declared a total dividend of P56,000.
2. No dividends are in arrears. On Dec. 31, 2019, R. Dela Calzada declared a total
dividend of P66,000.
3. Preference dividends for 2017 and 2018 are in arrears. On Dec. 31, 2019, R. Dela
Calzada declared a total dividend of P88,000.

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