12. In 2024 a company has 2,300,000 outstanding shares of its 1 par value common stockoutstanding. The company also has 20,000 shares of 5% $10 noncumulative preferred stockoutstanding. The company paid no dividend in 2022 and 2023. If the company declares a 5.60per share dividend, how much will go to the preferred shareholders and how much will go thecommon shareholders?13. A company issues a $15,000,000 bond with a price of 102.3. Write the entry to record thebond.14. Write the entry if the company in # 13 above sold the bond at a price of 94.3.15. A company issued $10,000,000 bonds with a rate of 7% for 15 years. If the company recorded a$350,000 discount when they issued the bonds and they pay interest semi-annually, write theentry to record the six month interest payment.

12. To calculate the dividend distribution for preferred and common shareholders, we'll follow these…

Answered: 12. In 2024 a company has 2,300,000…

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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8. On December 31st, 2022 Czervik Construction had 60,000 shares of $50 par value common stock outstanding. On January 1st, 2020, Czervik issued 30,000 shares of $100 par value, 4% cumulative preferred stock. Czervik did not declare dividends in 2020. Czervik declared $220,000 of total dividends in 2021. Czervik declared $220,000 of total dividends in 2022. What was the amount of dividends received by common shareholders in 2022? $100,000 You Answered None of the other answers $160,000 Correct Answer • $80,000
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1. Rahman Company began 2022 with 690,000 shares of common stock outstanding. On September 1, 2022 there was a 2 for 1 stock split. On November 1, 2022, the company repurchased 270,000 shares of treasury stock. 2. Net Income for 2022 was $18,990,000 and the corporate tax rate is 25%. 3. 4% convertible preferred stock was outstanding all year. Each share has a par value of $100 and the total par value is $18,000,000. Each preferred share is convertible into 3 shares of common stock. 4. In 2015, 8% bonds (maturing in 10 years) were issued at 98. The discount is being amortized on a straight-line basis. The bonds have a $1,000 par value each for a total par value of $12,000,000. Each bond is convertible into 2 shares of common stock. 5. On March 1, 2022, Rahman had a second issuance of convertible bonds at their stated rate of 9%. Each $1,000 bond is convertible into 6 shares of common stock. The total par is $15,000,000. 6.…
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Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?
Suppose a corporation has the following shares outstanding: 1. $800,000 in 6% Preferred Stock ($100 par value) 2. $3,200,000 in Common Stock ($10 par value) No dividends were declared for the years 2020 and 2021. Two scenarios are presented below and each is independent of each other. Scenario 1: As of December 31, 2022, a dividend of $250,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating (cumulative and non-participating). Answer: Scenario 2: As of December 31, 2022, a dividend of $800,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating up to 11% in total (cumulative and non-participating). Answer:
Indigo Company's net income for 2025 is $641,000, and 79,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 27,000 executive stock options issued during 2024, each exercisable for one share at $19.50; none of these have been exercised. The average market price of Indigo's stock during 2025 was $25. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2025, with an exercise price of $26 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Crane, Inc. has $500,000, $0.80, no par value preferred shares (50,000 shares) and $1,000,000 of no par value common shares outstanding (80,000 shares). No dividends were paid or declared during 2021 and 2022. The company wants to distribute $582,500 in dividends on December 31, 2023. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Preferred Common Total dividends $ $ Save for Lat
7. At December 31, 2024, DEF Corporation had outstanding 200,000 shares of common stock. Also outstanding were 80,000 shares of preferred stock convertible into 64,000 common shares and $2,000,000 of 10% bonds convertible into 30,000 common shares. DEF's net income for the year ended December 31, 2024, is $1,140,000. The income tax rate is 25%. DEF paid dividends of $3 per share on its preferred stack during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024, considering possible antidilutive effects.
10. Wantage, Inc. had beginning retained earnings of $280,000 on January 1, 2025. During the year, Wantage, Inc. declared and paid $120,000 of cash dividends and earned $170,000 of net income. In addition, the company reports on January 1, 2025, 18,000 shares of common stock at a par value of $6 per share. The company issued this stock at par value, and there were no additional changes in common stock throughout the year. Prepare a statement of retained earnings and statement of stockholders' equity for Wantage, Inc. for the year ended December 31, 2025. Start by preparing a statement of retained earnings for Wantage, Inc. for the year ended December 31, 2025. (Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal.) Wantage, Inc. Statement of Retained Earnings Year Ended December 31, 2025
Sheridan Corporation has outstanding 10,500 shares of $100 par value, 6% preferred stock and 63,400 shares of $10 par value common stock. The preferred stock was issued in January 2025, and no dividends were declared in 2025 or 2026. In 2027, Sheridan declares a cash dividend of $304,000. (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 would receive $ (b) Assume that the preferred are cumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would receive $ How much dividend will the common stockholders receive? Common stockholders would receive $
8. Andy Farmer Publications had the following results for the year ended December 31, 2022; Net Income - $1,500,000 Average Common Shares Outstanding - 1,000,000 On January 1, 2022 Andy Farmer Publication's issued 400,000 Stock Options with a two-year vesting period and a strike price of $10. The Company also had Convertible debt with a Face Value of $7,500,000 and an interest rate of 10% outstanding for all of 2022. Each $1,000 bond was convertible in to 40 shares of common stock. The tax rate was 30% and the average Fair Value of the Common Stock was $40 during the year. What amount should Andy Farmer Publications report as Diluted Earnings Per Share for the year ended December 31, 2022 (Round to the nearest penny)? $1.19 $1.27 $1.07 $1.15

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