Homework Answers
Answer to Question 1.
Annual Preferred Stock Dividend= 9,400 * $100 * 3% = $28,200
As Preferred stock are non- cumulative, Dividend for year 2017 wouldn't be paid.
Dividend Declared in 2018 = $121,500
Dividend paid to Preferred stockholders = $28,200
Dividend paid to Common Stockholders = $121,500 - $28,200
Dividend paid to Common Stockholders = $93,300
Answer to Question 2.
Common Stock Outstanding = 860,000
Stock Dividend Declared = 15%
Number of Common stock declared as Dividend = 860,000 * 15%= 129,000 stocks
The journal entry to record Stock Dividend Declared:
| Date | General Journal | Debit | Credit |
| Mar 31 | Retained Earnings (129,000 * $15) | 1,935,000 | |
| Common Stock Distributable | 1,290,00 | ||
| Paid-in capital in excess of par | 645,000 | ||
| (Record Stock Dividend Declared) |
Common Stock Distributable = 129,000 * $10 = $1,290,000
Paid-in capital in excess of par = 129,000 * $5 = $645,000
The correct Option is
1 i.e. Concord Paid-in capital in excess of par increased by
$645,000.
Answer to Question 3.
Annual Dividend on Preferred Stock = 1,010 * $100 * 4%
Annual Dividend on Preferred Stock = $4,040
As Preferred stock are cumulative, the Dividend unpaid for any year will be arrear and will be paid cumulatively.
As no dividend in paid in year 2017 and 2018, so
Dividend in arrear at December 31, 2018 = $4,040 * $2
Dividend in arrear at December 31, 2018 = $8,080
Answer to Question 4.
Number of Treasury Stock purchased = 41,000 Shares
Cost of Treasury Stock purchased = 41,000 * $43
Cost of Treasury Stock purchased = $1,763,000
The purchase of Treasury Stock would decrease Cash and Total Stockholder's equity by $1,763,000.
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Multiple Choice Question 57
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Multiple Choice Question 57
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preferred stock and 72800 shares of $1 par value common stock
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in 2019. The board of directors declares and pays a $120600
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Click if you would like to
Show Work for this question:
Open Show...
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