Homework Answers
| In the case of cumulative preferred stock, if for any previous years the dividend is not paid then it will be considered as arrears of dividend and it will be paid later. | |
| Dividend per year of preferred stock = Preferred shares outstanding * Par value * Dividend % = 5000 * 75 * 9% | 33750 |
| Dividend allocated to preferred stockholders = Dividend for current year + One year's arrears of dividend = 33750 + 33750 | 67500 |
| Dividend allocated to common stockholders = Total cash dividend declared - Dividend allocated to preferred stockholders = 175000 - 67500 | 107500 |
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Can i get help solving allocating the cash dividend b/w
preferred and common stockholders?
A corporation...
A corporation had the following stock outstanding when the company's board of directors declared a $95,000...
A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year: Preferred stock, $100 par, 6% 5,000 shares issued $500,000 Common stock, $10 par, 70,000 shares issued 700,000 Total $1,200,000 Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.
Please write the steps to get the answers. P15.7 (LO 3) (Cash Dividend Entries) The books...
Please write the steps to get the answers.
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2020. Cash 195,000 Preferred Stock (6% cumulative, 300,000 nonparticipating, $50 par) Common Stock (no-par value, 300,000 1,500,000 shares issued) Paid-in Capital in Excess of Par-Preferred 150,000 Stock Treasury Stock (common 2,800 shares at 33,600 cost) Retained Earnings 105,000 The company decided not to pay any dividends in 2020. The board of directors,...
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances...
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2020. $ 195,000 Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 300,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Treasury Stock (common 2,800 shares at cost) Retained Earnings 300,000 1,500,000 150,000 33,600 105,000 The company decided not to pay any dividends in 2020. The board of directors, at their annual meeting on December 21,...
P15.7 (LO 3) (Cash Dividend Entries) account balances as of December 31, 2020. The books of...
P15.7 (LO 3) (Cash Dividend Entries) account balances as of December 31, 2020. The books of Conchita Corporation carried the following Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 300,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Treasury Stock (common 2,800 shares at cost) Retained Earnings $ 195,000 300,000 1,500,000 150,000 33,600 105,000 The company decided not to pay any dividends in 2020. The board of directors, at their annual meeting on December 21,...
26 HWIT#26: CASH DIVIDENDS PREFERRED STOCK and COMMON STOCK: Listed below we ens found in the...
26 HWIT#26: CASH DIVIDENDS PREFERRED STOCK and COMMON STOCK: Listed below we ens found in the stockholders' equity section of the Garland's Corporation Balance Sheet. The Grand Corporation declared cash dividends of $500.000 on September I payable to stockholders of record on December 1, 2018 8% Preferred stock. $100 par value. cumulative, 50,000 shares authorized 25,00 shares issued and outstanding Common stock, S10 stated value, 400,000 shares authorized, 100,000 issued and outstanding Instructions: Assume each is an independent transaction. a....
Problem 15-07 The books of Bonita Corporation carried the following account balances as of December 31,...
Problem 15-07
The books of Bonita Corporation carried the following account
balances as of December 31, 2020.
Cash
$ 191,000
Preferred Stock (6% cumulative, nonparticipating, $50 par)
300,000
Common Stock (no-par value, 317,000 shares issued)
1,585,000
Paid-in Capital in Excess of Par—Preferred Stock
162,000
Treasury Stock (common 2,800 shares at cost)
32,700
Retained Earnings
110,000
The company decided not to pay any dividends in 2020.
The board of directors, at their annual meeting on December 21,
2021, declared the following:...
STEINER CORPORATION Partial Balance Sheet December 31, 2018 Stockholders’ equity 8% Preferred stock, $100 par value,...
STEINER CORPORATION Partial Balance Sheet December 31, 2018 Stockholders’ equity 8% Preferred stock, $100 par value, cumulative, 5,000 shares issued ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ$500,000 In excess of par value— preferred stock ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ $280,000 Common stock, $5 par value, 440,000 shares issued ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ$2,200,000 In excess of par value—common stock ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ $800,000 Total paid-in capital ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ $3,780,000 Retained earnings ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ $1,334,000 Total paid-in capital and retained earnings ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ$5,114,000 Less: Treasury stock (10,000 common shares) ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ($120,000) Total stockholders’ equity ˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑˑ $4,994,000 On December 1, 2018, the...
Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2015: Common Stock...
Tower Corp. had the following stock outstanding and Retained
Earnings at December 31, 2015:
Common Stock (par $8; outstanding, 23,000
shares)
$
184,000
Preferred Stock, 7% (par $10; outstanding, 5,300
shares)
53,000
Retained Earnings
273,000
On December 31, 2015, the board of directors
is considering the distribution of a cash dividend to the common
and preferred stockholders. No dividends were declared during 2013
or 2014, and none have been declared yet in 2015. Three independent
cases are assumed:
Case A:...
Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred...
Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, $30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: 1....
Assume CGM Corp has issued and outstanding 22,000 shares of 5%, $25 par value preferred stock...
Assume CGM Corp has issued and outstanding 22,000 shares of 5%, $25 par value preferred stock and issued and outstanding 15,000 shares of $15 stated value common stock. The board of directors declares dividends of $50,000, the preferred stock is cumulative, and $17,500 dividends is in arrears. What amount is allocated to common stockholders?
Please write the steps to get the answers.
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2020. Cash 195,000 Preferred Stock (6% cumulative, 300,000 nonparticipating, $50 par) Common Stock (no-par value, 300,000 1,500,000 shares issued) Paid-in Capital in Excess of Par-Preferred 150,000 Stock Treasury Stock (common 2,800 shares at 33,600 cost) Retained Earnings 105,000 The company decided not to pay any dividends in 2020. The board of directors,...
P15.7 (LO 3) (Cash Dividend Entries) The books of Conchita Corporation carried the following account balances as of December 31, 2020. $ 195,000 Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 300,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Treasury Stock (common 2,800 shares at cost) Retained Earnings 300,000 1,500,000 150,000 33,600 105,000 The company decided not to pay any dividends in 2020. The board of directors, at their annual meeting on December 21,...
P15.7 (LO 3) (Cash Dividend Entries) account balances as of December 31, 2020. The books of Conchita Corporation carried the following Cash Preferred Stock (6% cumulative, nonparticipating, $50 par) Common Stock (no-par value, 300,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Treasury Stock (common 2,800 shares at cost) Retained Earnings $ 195,000 300,000 1,500,000 150,000 33,600 105,000 The company decided not to pay any dividends in 2020. The board of directors, at their annual meeting on December 21,...
26 HWIT#26: CASH DIVIDENDS PREFERRED STOCK and COMMON STOCK: Listed below we ens found in the stockholders' equity section of the Garland's Corporation Balance Sheet. The Grand Corporation declared cash dividends of $500.000 on September I payable to stockholders of record on December 1, 2018 8% Preferred stock. $100 par value. cumulative, 50,000 shares authorized 25,00 shares issued and outstanding Common stock, S10 stated value, 400,000 shares authorized, 100,000 issued and outstanding Instructions: Assume each is an independent transaction. a....
Problem 15-07
The books of Bonita Corporation carried the following account
balances as of December 31, 2020.
Cash
$ 191,000
Preferred Stock (6% cumulative, nonparticipating, $50 par)
300,000
Common Stock (no-par value, 317,000 shares issued)
1,585,000
Paid-in Capital in Excess of Par—Preferred Stock
162,000
Treasury Stock (common 2,800 shares at cost)
32,700
Retained Earnings
110,000
The company decided not to pay any dividends in 2020.
The board of directors, at their annual meeting on December 21,
2021, declared the following:...
Tower Corp. had the following stock outstanding and Retained
Earnings at December 31, 2015:
Common Stock (par $8; outstanding, 23,000
shares)
$
184,000
Preferred Stock, 7% (par $10; outstanding, 5,300
shares)
53,000
Retained Earnings
273,000
On December 31, 2015, the board of directors
is considering the distribution of a cash dividend to the common
and preferred stockholders. No dividends were declared during 2013
or 2014, and none have been declared yet in 2015. Three independent
cases are assumed:
Case A:...
Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, $30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: 1....
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