19) Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company declares a total dividend of $35,000, how much will be distributed to common shareholders?
20) Aztec Industries has 100,000 common shares outstanding and 10,000 $2 cumulative preferred shares. If the company does not declare any dividends in Year 1 but declares a total dividend of $45,000 in Year 2, how much will be distributed to preferred and common shareholders?
21) Explain the difference between cumulative and non-cumulative preferred shares.
22) ABC Company declares a $50,000 cash dividend to its shareholders. The company has 40,000 outstanding common shares and 15,000 $3 noncumulative preferred shares. Record the journal entry.
23) Are dividends in arrears a liability? Explain.
24) Hancock Enterprise has 30,000 $2 noncumulative preferred shares. It did not pay any dividends for the current year. How much, if any, are the dividends in arrears?