The following share capital information is available for a corporation with an April 30, 2022 year-end:...
The following share capital information is available for a
corporation with an April 30, 2022 year-end:
The shares were issued when the corporation began operations on May
1, 2015. No dividends were declared during the fiscal years ended
2020 and 2021. On February 28, 2022, the board of directors
declared the required preferred share dividends and a $0.75
dividend for each of the common shares. The dividends are payable
on April 1, 2022, to the shareholders of record on March 15,
2022.
| Preferred shares, $2.75 cumulative, 25,000 shares issued | $1,000,000 | |
| Preferred shares, $4.75 noncumulative, 15,000 shares issued | 600,000 | |
| Common shares, 210,000 shares issued | 1,155,000 |
a) How much will be paid to each class of shares?
| Year | Cumulative Preferred | Non-cumulative Preferred | Common | |||
| 2020 | $ | $ | $ | |||
| 2021 | $ | $ | $ | |||
| 2022 | $ | $ | $ |
b) Assume instead that the maximum cash dividend the
company can pay is $355,500. Determine how much will be paid to the
preferred shareholders and to the common
shareholders.
| Year | Cumulative Preferred | Non-cumulative Preferred | Common | |||
| 2022 | $ | $ | $ |
Homework Answers
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The following share capital information is available for a
corporation with an April 30, 2022 year-end:...
Sage Ltd. showed the following information on its September 30, 2021 year-end financial statements: Preferred Shares,...
Sage Ltd. showed the following information on its September 30,
2021 year-end financial statements:
Preferred Shares, $8 cumulative, 500,000 shares
authorized,
214,000 shares
issued and outstanding
$3,424,000
Common Shares, no par value, unlimited shares authorized,
559,000 shares
issued and outstanding
$5,590,000
The following transactions occurred, in the order given, during
2022:
(a)
October 10, 2021: Received subscriptions and down payments for
81,000 common shares at $11 per share. The subscription contracts
calls for 40% of the subscription to be paid...
Calculate the average per share amount of the preferred and common shares at January 1, 2021....
Calculate the average per share amount of the preferred and
common shares at January 1, 2021.
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Brief Exercise 15-15 Cheyenne Corporation has outstanding 9,600 shares of $100 par value, 6% preferred stock and 57,400 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Cheyenne declares a cash dividend of $306,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would receive How much dividend will the common stockholders receive? Common stockholders...
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5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued...
5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued 2.000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31. the company declared the following cash dividends: 2020, S6,000, 2021, $13,000, and 2022 S29,000. Instructions: REQUIRED (12 points) Prepare a well-labeled schedule showing the allocation of dividends to each class of stock for each year, assuming the preferred stock dividend is 8% and cumulative....
5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued...
5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2020, $6,000, 2021, $13,000, and 2022 $29,000. Instructions: REQUIRED (12 points) Prepare a well-labeled schedule showing the allocation of dividends to each class of stock for each year, assuming the preferred stock dividend is 8% and cumulative....
5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued...
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Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 113,000 shares of $10 par common stock. 9,500 shares of $150 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $3 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount...
Sage Ltd. showed the following information on its September 30,
2021 year-end financial statements:
Preferred Shares, $8 cumulative, 500,000 shares
authorized,
214,000 shares
issued and outstanding
$3,424,000
Common Shares, no par value, unlimited shares authorized,
559,000 shares
issued and outstanding
$5,590,000
The following transactions occurred, in the order given, during
2022:
(a)
October 10, 2021: Received subscriptions and down payments for
81,000 common shares at $11 per share. The subscription contracts
calls for 40% of the subscription to be paid...
Calculate the average per share amount of the preferred and
common shares at January 1, 2021.
WileyPLUS Problem 13-3 Manion Merchandising Inc. had the following share capital and balances on January 1, 2021. $1,670,000 $2.50 cumulative preferred shares, convertible into common shares at a ratio of 4 common shares for 1 preferred share, unlimited number of shares authorized, 100,000 shares issued Common shares, unlimited number of shares authorized, 700,000 shares issued 2,450,000 The following transactions relating to shares occurred in...
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5. Fedco Corporation was organized on January 1, 2020. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2020, $6,000, 2021, $13,000, and 2022 $29,000. Instructions: REQUIRED (12 points) Prepare a well-labeled schedule showing the allocation of dividends to each class of stock for each year, assuming the preferred stock dividend is 8% and cumulative....
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