... preference dividend) 7,000 Ordinary dividend (50 % of earnings) 3 ,50 0 Retained profit (also 50 % of earnings) 3 ,50 0 The ordinary dividend is cents per share ($3 ,50 0 ÷ 50 ,000 ordinary shares) The appropriation ... managers wish to pay a dividend of $5, 000, they may propose either: (a) a dividend of 5c per share (100,000 × 5c = $5, 000); or (b) a dividend of 10% (10% × $50 ,000 = $5, 000) Revision Accounting process ... after tax 8,400 Dividends: preferred 1,400 ordinary 3 ,50 0 4,900 Retained profit 3 ,50 0 Garden Gloves Co has issued 50 ,000 ordinary shares of 50 cents each and 20,000 7% preference shares of $1 each...