Lynn Company has outstanding 60,000 common shares of $10 par value and 25,000 preferred shares of...

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Lynn Company has outstanding 60,000 common shares of $10 par value and 25,000 preferred shares of $20 par value (8 percent).

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Answer 1

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		Cash Dividend on Preferred	Stock Dividend
		[25000 shares x $ 20 x 8%]	[60000 shares x $ 10 x 10%]
a	*Through Dec 31, 2017*
	Assets	$0	$0
	Liabilities	$40,000	$60,000
	Shareholders' Equity	($40,000)	($60,000)
b	*On Feb 15, 2018*
	Assets	($40,000)	($60,000)
	Liabilities	($40,000)	($60,000)
	Shareholders' Equity	$0	$0
c	*Overall effect from Dec 1, 2017 through Feb 15 2018*
	Assets	($40,000)	($60,000)
	Liabilities	$0	$0
	Shareholders' Equity	($40,000)	($60,000)

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Lynn Company has outstanding 60,000 common shares of $10 par value and 25,000 preferred shares of...

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