Question

of the cash dividend. BE14.2 (LO 1) M. Bot Corporation has 10,000 shares of 8% , $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bot wants to pay $375,000 of dividends in 2020, what amount of dividends will common stockholders receive? Determine dividends paid to common stockholders BE14.3 (LO 1) Langley Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $16. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend Prepare entries for a s Show before-and-aft stock dividend. section of Pretzer Corporation consists of common stock 4(20.000 shares) is

Answer 1

a) Dividend distribution

Preferred dividend = 10000*100*8% = 80000

	Total	Preferred	Common
2020	375000	80000*3 = 240000	375000-240000 = 135000

b) Journal entry

Date	account and explanation	Debit	Credit
Dec 1	Stock dividend (50000*15%*16)	120000
	Common Stock dividend distributable		75000
	Paid in Capital in excess of par value-Common Stock		45000
Dec 31	Common Stock dividend distributable	75000
	common Stock		75000