Question

At December 31, 2020 and 2021, Oriole Company had outstanding 4000 shares of $100 par value 6% cumulative preferred stock and 18800 shares of $10 par value common stock. At December 31, 2020, dividends in arrears on the preferred stock were $13000. Cash dividends declared in 2021 totaled $44600. What amounts were payable on each class of stock

Answer 1

See below

Step-by-step explanation:

2020 2021

Allocation to preferred stock

Nil 44,600

Remainder to common stock

Nil 20,000