10. Ultimate Sportswear has $100,000 of 8% noncumulative, preferred stock outstanding. Ultimate Sportswear also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $30,000. This dividend should be distributed as follows:A. $8,000 preferred; $22,000 common B. $16,000 preferred; $14,000 common C. $7,500 preferred; $22,500 common D. $15,000 preferred; $15,000 common E. $0 preferred; $30,000 common

Non-cumulative preferred shares are a form of preferred stock that corporations issue. This type of…

Answered: 10. Ultimate Sportswear has $100,000 of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A 120. Subject:- accounting
The Chester Company has issued 10%, nonparticipating, cumulative preferred stock with a total par value of $400,000 and common stock with a total par value of $800,000. No dividends are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $180,000 are distributed?
p/ 102. Down River Express has 5,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is $390,000. The balance sheet shows a paid in surplus account value of $122,000 and retained earnings of $216,000. The company just announced a 2-for-1 stock split. What will the paid in surplus account balance be after the split?  A. $61,000 B. $112,000 C. $122,000 D. $183,000 E. $244,000
Wildcat, Inc. declared a 10% stock dividend when it had 250,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to: O Common Stock $250.000. O Retained Earnings $250,000. O Retained Earnings $25,000. O Additional Paid in Capital $250,000. O None of the above.
Torino Company has 10,000 shares of $5 par value, 4% cumulative preferred stock and 100,000 shares of $10 par value commo outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid preferred stockholders in the second year before any dividend is paid to common stockholders is: Multiple Choice $2,000. $0. $3,000. $1,000.
Just prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock ($0.20 par value) Additional paid-in capital $ 70,000 2,000,000 900,000 Retained earnings Treasury stock Cash flows from financing activities Required: Complete the table below for each of the three following independent cases: Note: Round "Par per share" answers to 2 decimal places. Case 1: The board of directors declared a cash dividend of $0.02 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $12 per share. Case 3: The board of directors announced 2-for-1 stock split. The market price prior to the split was $20 per share. Items After Stock Dividend Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 0 24,000 70,000 $ 0.2 2,000,000 900,000 24,000 After Cash…
17. Graniel Couture has $260,000 of 8% noncumulative, preferred stock outstanding. Graniel Couture also has $80,000 of common stock outstanding. The company paid cash dividends of $56,000 during the year. This dividend should be distributed as follows: a. $20,800 common; $35,200 preferred; b. $56,000 preferred; $0 common. c. $20,800 preferred; $35,200 common. d. $0 preferred; $56,000 common. e. $28,000 preferred; $28,000 common.
4a. Torino Company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $3,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: $7,800. $3,900. $4,300. $3,500. $400. 4b. The following data were reported by a corporation: Authorized shares 40,000 Issued shares 35,000 Treasury shares 13,500 The number of outstanding shares is: Multiple Choice 53,500. 35,000. 26,500. 21,500. 40,000.
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1.Comfort Mattresses, Inc. sold 26,000 shares of its P1 par value common stock at a cash price of 12 per share. The entry to record this transaction would be? 2.Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a 10 par value and 3,000 shares of common stock with a 1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 P 20,000 year 2 P 6,000 year 3 P 32,000 The amount of dividends paid to preferred and common shareholders in year 1 is:
E11-1B. Dividend Distribution Bowen Corporation has the following shares outstanding: 15,000 shares of $50 par value, six percent preferred stock and 50,000 shares of $5 par value common stock. During its first three years in business, the firm declared no dividends in the first year, $140,000 of divi- dends in the second year, and $60,000 of dividends in the third year. a. If the preferred stock is cumulative, determine the total amount of dividends paid to each class of stock in each of the three years. If the preferred stock is noncumulative, determine the total amount of dividends paid to each class of stock in each of the three years.

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