Homework Answers
a. Non cumulative and non participating meaning the shareholders do not receive any prior year dividend.
Preferred stock dividend = 250,000 *6% = 15000
Common shareholders = 90,000 - 15,000 = 75,000
b. Cumulative and non participating means that the shareholders receive prior year dividend but do not get to participate in the residual income.
Preferred stock dividend = (250,000 *6%)* 2 = 30000
Common shareholders = 90,000 - 30,000 = 60,000
c. Cumulative and participating means that the shareholders receive prior year dividend and get to participate in the residual income.
Preferred stock dividend before pro rata basis= (250,000 *6%)* 2 = 30000
Common stock before pro rata basis = (250,000 * 6%) = 15000
Allocating balance dividend of $45,000 on a pro rata basis between common stock holders and preferred stockholders i.e. [ 25:40]
Preferred stock dividend = 45,000 * 25/ 65= 17308
Common stock dividend = 45,000 * 45/ 65= 27692
Total preferred dividend = 30,000 +17308 = 47308
Total common dividend = 15000 + 27692 = 42692
Add Answer to:
The stockholders' equity section of Joshua Company shows the following on December 31, 2019 Preferred stock,...
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock—5%,...
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock—5%, $100 par, 4,500 shares outstanding $450,000 Common stock—$10 par, 58,000 shares outstanding 580,000 Paid-in capital in excess of par 210,000 Retained earnings 115,200 Total stockholders' equity $1,355,200 Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred and common stockholders should receive if...
please show work The stockholders' equity section of Lemay Corporation shows the following on December 31,...
please show work
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: $500,000 Preferred stock-5%, $100 par, 5,000 shares outstanding 590,000 Common stock-$10 par, 59,000 shares outstanding 180,000 Paid-in capital in excess of par 123,100 Retained earnings $1,393,100 Total stockholders' equity Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred and common stockholders...
The Stockholders' Equity category of Rausch Company's balance sheet as of December 31, 2017, appeared as...
The Stockholders' Equity category of Rausch Company's balance sheet as of December 31, 2017, appeared as follows: Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding $200,000 Common stock, $10 par, 40,000 shares issued and outstanding 400,000 Additional paid-in capital 500,000 Total contributed capital $1,100,000 Retained earnings 900,000 Total stockholders' equity $2,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2015 or 2016. Rausch wants to declare a dividend of...
GUY Inc., has $820,000 of 4% preferred stock and $1,150,000 of common stock outstanding, each having a par value of $10...
GUY Inc., has $820,000 of 4% preferred stock and $1,150,000 of
common stock outstanding, each having a par value of $10 per share.
No dividends have been paid or declared during 2019 and 2020. As of
December 31, 2021, it is desired to distribute $282,300 in
dividends.
How much will the preferred and common stockholders receive under
each of the following assumptions:
(a)
The preferred is noncumulative and nonparticipating.
(b)
The preferred is cumulative and nonparticipating.
(c)
The preferred is...
The records of Hoffman Company reflected the following balances in the stockholders’ equity accounts at December...
The records of Hoffman Company reflected the following balances in the stockholders’ equity accounts at December 31, 2018: Common stock, par $12 per share, 46,500 shares outstanding. Preferred stock, 8 percent, par $12.5 per share, 7,210 shares outstanding. Retained earnings, $233,000. On January 1, 2019, the board of directors was considering the distribution of a $63,300 cash dividend. No dividends were paid during 2017 and 2018. Required: Determine the total and per-share amounts that would be paid to the common...
The shareholders' equity of Davis Industries includes the data shown below. During 2019, cash dividends of...
The shareholders' equity of Davis Industries includes the data shown below. During 2019, cash dividends of $22,000 were declared. Shares authorized Shares issued & outstanding Par value Common stock 15,000 600 12,000 500 $ 2 100 Preferred stock 8% Required: Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following assumptions regarding the characteristics of the preferred stock. Assumption A-The preferred stock is noncumulative and nonparticipating. Assumption B-The preferred stock is noncumulative,...
View Policies Current Attempt in Progress The stockholders' equity section of Lemay Corporation shows the following...
View Policies Current Attempt in Progress The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock-5%, $100 par, 5,100 shares outstanding $510,000 Common stock-$10 par, 62,000 shares outstanding 620,000 Paid-in capital in excess of par 200,000 Retained earnings 104,600 Total stockholders' equity $1,434,600 Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred...
Bonita Company's ledger shows the following balances on December 31, 2017. 6% Preferred Stock-$10 par value,...
Bonita Company's ledger shows the following balances on December 31, 2017. 6% Preferred Stock-$10 par value, outstanding 21,500 shares Common Stock-$100 par value, outstanding 29,100 shares Retained Earnings $215,000 2,910,000 647,000 Assuming that the directors decide to declare total dividends in the amount of $398,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating....
Sarasota Company's ledger shows the following balances on December 31, 2017. 4% Preferred Stock-$10 par value,...
Sarasota Company's ledger shows the following balances on December 31, 2017. 4% Preferred Stock-$10 par value, outstanding 20,700 shares Common Stock-$100 par value, outstanding 27,700 shares Retained Earnings $ 207,000 2,770,000 569,000 Assuming that the directors decide to declare total dividends in the amount of $336,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Blue Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value,...
Blue Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value, outstanding 20,700 shares $ 207,000 Common Stock—$100 par value, outstanding 30,300 shares 3,030,000 Retained Earnings 654,000 Assuming that the directors decide to declare total dividends in the amount of $332,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
please show work
The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: $500,000 Preferred stock-5%, $100 par, 5,000 shares outstanding 590,000 Common stock-$10 par, 59,000 shares outstanding 180,000 Paid-in capital in excess of par 123,100 Retained earnings $1,393,100 Total stockholders' equity Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred and common stockholders...
GUY Inc., has $820,000 of 4% preferred stock and $1,150,000 of
common stock outstanding, each having a par value of $10 per share.
No dividends have been paid or declared during 2019 and 2020. As of
December 31, 2021, it is desired to distribute $282,300 in
dividends.
How much will the preferred and common stockholders receive under
each of the following assumptions:
(a)
The preferred is noncumulative and nonparticipating.
(b)
The preferred is cumulative and nonparticipating.
(c)
The preferred is...
The shareholders' equity of Davis Industries includes the data shown below. During 2019, cash dividends of $22,000 were declared. Shares authorized Shares issued & outstanding Par value Common stock 15,000 600 12,000 500 $ 2 100 Preferred stock 8% Required: Determine the amount of dividends payable to preferred shareholders and to common shareholders under each of the following assumptions regarding the characteristics of the preferred stock. Assumption A-The preferred stock is noncumulative and nonparticipating. Assumption B-The preferred stock is noncumulative,...
View Policies Current Attempt in Progress The stockholders' equity section of Lemay Corporation shows the following on December 31, 2018: Preferred stock-5%, $100 par, 5,100 shares outstanding $510,000 Common stock-$10 par, 62,000 shares outstanding 620,000 Paid-in capital in excess of par 200,000 Retained earnings 104,600 Total stockholders' equity $1,434,600 Assuming that all of the company's retained earnings are to be paid out in dividends on 12/31/18 and that preferred dividends were last paid on 12/31/16, show how much the preferred...
Bonita Company's ledger shows the following balances on December 31, 2017. 6% Preferred Stock-$10 par value, outstanding 21,500 shares Common Stock-$100 par value, outstanding 29,100 shares Retained Earnings $215,000 2,910,000 647,000 Assuming that the directors decide to declare total dividends in the amount of $398,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating....
Sarasota Company's ledger shows the following balances on December 31, 2017. 4% Preferred Stock-$10 par value, outstanding 20,700 shares Common Stock-$100 par value, outstanding 27,700 shares Retained Earnings $ 207,000 2,770,000 569,000 Assuming that the directors decide to declare total dividends in the amount of $336,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Most questions answered within 3 hours.
-
C - Language
Write a loop that sets each array element to the sum of itself...
asked 54 minutes ago -
(63
#14)
which of the following statments best describes how chamging
the concentration of the substances...
asked 4 hours ago -
In the following reaction, which element is undergoing
oxidation: Na2SO3 + N2O --> N2 + Na2SO4...
asked 5 hours ago -
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 7 hours ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 8 hours ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 8 hours ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 9 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 9 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 9 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 9 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 9 hours ago -
Suppose there were three masses at the corner of uniform
equilateral triangle. The masses are m1...
asked 9 hours ago