Falcon Company Has 1,000 Shares of $100 Par Value, 9

Essay

Falcon Company has 1,000 shares of $100 par value, 9% preferred stock and 10,000 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2012. Since 2012, Falcon has declared and paid dividends as follows:
Required
1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2014 to 2016.
2. If the preferred stock had been noncumulative, how much would have been allocated to the preferred and common stockholders each year?