Question

When Collum Corporation was organized in January 2011, it immediately issued 10,000 shares of $60 par, 5 percent, cumulative preferred stock and 20,000 shares of $10 par common stock. The company's earnings history is as follows: 2011, net loss of $15,000; 2012, net income of $120,000; 2013, net income of $95,000. The corporation did not pay a dividend in 2011.

Required:
(a) How much is the dividend arrearage as of January 1, 2012? (Round your "Dividend per Share" value to 2 decimal places.
(b) Assume that the board of directors declares an $80,000 cash dividend at the end of 2012 (remember that the 2011 and 2012 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Show in spreadsheet format