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Preference and Ordinary Shareholders Assignment | Top Universities

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February 13th, 2020

Cash dividends LO3, 4 Chen Company declares a $90 000 dividend. Chen has 80 000 ordinary shares issued. Chen's 20 000 preference shares are cumulative, 5 percent and had a $12 per share issue price. Chen has not paid dividends in the past three years. REQUIRED a Determine how the $90 000 in dividends should be allocated to preference and ordinary shareholders.

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b, Prepare the journal entry that would be recorded on the declaration date. c Determine how the $90 000 in dividends should be allocated to preference and ordinary shareholders, assuming that the preference shares are non-cumulative. Get Accounting Homework Help Today.

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