Answer:
The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.
Paid-In Capital:
Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding
: $220,000
Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding
: 760,000
total dividends distributed:
2018: $9,000
2019: $45,000
preferred dividends = $220,000 x 5% = $11,000
Distributed dividends:
2018:
$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.
2019:
$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.
$32,000 in dividends distributed to common stockholders, $0.084 per common stock.
Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.
