Cash Dividends
Shares of common stock outstanding = Total common dividends/Per share common dividend = $36000/$0.09 = 400000
Shares of preferred stock outstanding = Total preferred dividends/Per share preferred dividend = $40000/$0.20 = 200000
Preferred dividend as a percent of par = $0.30/$30 = 1%
Stock Dividend
Total paid-in capital before the stock dividend* | 21000000 |
Total retained earnings before the stock dividend | 33500000 |
Total stockholders' equity before the stock dividend | 54500000 |
Total paid-in capital after the stock dividend** | 21208000 |
Total retained earnings after the stock dividend** | 33292000 |
Total stockholders' equity after the stock dividend | 54500000 |
*Total paid-in capital before the stock dividend = (400000 x $20) + (200000 x $30) + $7000000 = $21000000
**Total paid-in capital after the stock dividend:
Number of shares of stock dividend = 2% x 400000 = 8000
Total paid-in capital after the stock dividend = $21000000 + (8000 x $26) = $21208000
Total retained earnings after the stock dividend = $33500000 - (8000 x $26) = $33292000
Determining Cash Payments to Stockholders
Cash payments to stockholders during the year = $40600 + $150300 - $36500 = $154400
Reporting Issuance and Retirement of Long-Term Debt
Items | Section of Statement of Cash Flows | Added or Deducted | Amount | |
Retire bonds | Financing activities section | Deducted | 84640 | ($92000 - $7360) |
Issue bonds | Financing activities section | Added | 257500 | ($276000 - $18500) |
Amortization of discount | Operating activities section, if indirect method used | Added | 1590 |
PLEASE HELP!!!! Please read the information very carefully. Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends...
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Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be...
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution...
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution...
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Assignment 2 Homework Calculator Mastery Problemi CorporationsOrganization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year, the current year. It is declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a constant to assist with this process, and also to help determine whether some missing information can be...
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Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 20Y6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has...
Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 2016, and is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be calculated before the distribution of the stock dividend is made. The company has two classes of...
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two...
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 20Y6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes...
Number of common shares authorized800,000Number of common shares issued650,000Par value of common shares$20Par value of cumulative preferred shares$30Paid-in capital in excess of par-common stock$7,000,000Paid-in capital in excess of par-preferred stock$0Total retained earnings before the stock dividend is declared$33,500,000No treasury share have been reissued.Stock DividendsThe company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $24 on December 1, and is...
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