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I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
Defined
I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
DefinedArrears
I n t h i s s e c t i o n w e w i l l c o v e r :uraccounted4accounting.com
DefinedArrearsParticipating
https://www.youtube.com/watch?v=JieWzVt_wos
Click here for the narratedversion of this deck on
Takes about 5 1/2 minutes.
PREFERRED
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DIVIDENDS
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PAIDBEFORE
COMMON
DECLARED
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DR: Dividends CR: Div Payable
DIVS IN ARREARS
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NOENTRY
DIVS IN ARREARS
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"CUMULATIVE"PREFERRED
EXAMPLE
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Par = $100Rate = 5%Div = $5
IF UNPAID
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Arrears = $5Current = $5Owed = $10
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"ARREARS"IS NOT ALIABILITY
PARTICIPATE
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EXCESSOVER
PREFERRED
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Preferred = $100,000Common = $200,000Dividends = $30,000
EXAMPLE:
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5% PFD DIVIDEND$100,000
* 5%$5,000
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BALANCE$30,000($5,000)$25,000
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5% TO COMMON$200,000
* 5%$10,000
facebook.com/uraccounted4accounting/
BALANCE$25,000($10,000)$15,000
facebook.com/uraccounted4accounting/
ALLOCATEBASED ONTOTAL PAR
facebook.com/uraccounted4accounting/
Total Par $300,000 = 100%Preferred $100,000 = 33%Common $200,000 = 67%
ALLOCATION %
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Bal of Divs = $15,000Preferred Gets $5,000Common Gets $10,000
ALLOCATION $
facebook.com/uraccounted4accounting/
Preferred $5,000 + $5,000= $10,000
Common $10,000 + $10,000= $20,000
TOTALS
R e c a p o f w h a t w e c o v e r e d :
Preferred shareholdersreceive dividends first
uraccounted4accounting.com
R e c a p o f w h a t w e c o v e r e d :
Preferred shareholdersreceive dividends firstArrears means unpaidamounts carry over
uraccounted4accounting.com
R e c a p o f w h a t w e c o v e r e d :
Preferred shareholdersreceive dividends firstArrears means unpaidamounts carry overParticipating is basedon par
uraccounted4accounting.com
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