2. Analyzing Cash Dividends on Preferred and Common StockPotter Company has outstanding 10,000 shares of $50 par value, 6%preferred stock and 80,000 shares of $5 par value common stock.During its first three years in business, it declared and paid no cashdividends in the first year, $240,000 in the second year, and $100,000in the third year.a) If the preferred stock is cumulative, determine the total amount ofcash dividends paid to each class of stock in each of the three years.Preferred StockCommon StockDividendDividendYear 1Year 2Year 3Show your calculations:(b) If the preferred stock is noncumulative, determine the total amountof cash dividends paid to each class of stock in each of the three years.Preferred StockCommon StockDividendDividendYear 1Year 2Year 3Show your calculations:

Answer with all calculations are as follows. Please find the answer in below pages.

Answered: 2. Analyzing Cash Dividends on…

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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Subject: accounting
[The following information applies to the questions displayed below.] Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 4 total cash dividends York's outstanding stock consists of 60,000 shares of cumulative 7.5% preferred stock with a $5 par value and also 170,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: Note: Round your "Dividend per Preferred Share" answer to 3 decimal places. Annual Preferred Dividend: Year 1 Year 2 Year 3 Year 4 Totals Par Value per Preferred Share Total Cash Dividend Paid $ $ $10,700 20,500 290,000 440,000 Dividend Rate 10,700 20,500 290,000 440,000 761,200 $ Paid to Preferred Dividend per Preferred Share 0 $ Paid to Common 0 Number of Preferred Shares Dividends in Arrears at year-end Preferred Dividend
Lenore, Inc. declared a cash dividend of $90,000 in 2021 when the following stocks were outstanding: Common stock 30,000 shares, $5 par value $150,000 Preferred stock, 6%, 6,000 shares, $50 par value $300,000 No dividends were declared or paid during the prior two years. Required: Compute the amount of dividends that would be paid to each stockholder group if the preferred stock is noncumulative. Compute the amount of dividends that would be paid to each stockholder group if the preferred stock is cumulative.
Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $20 par, and 25,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $4,600; second year, $7,600; third year, $43,050; fourth year, $77,500. Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, leave it blank. Preferred stock (dividend per share) Common stock (dividend per share) $ 1st Year 2nd Year 3rd Year $ 4th Year
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.
Sagar
Calculate the annual cash dividends required to be paid for each of the following preferred stock issuances: a. $2.40 cumulative preferred, no par value; 600,000 shares authorized, 470,000 shares issued, 28,000 shares held as treasury stock. b. 10 percent, $50 par value preferred; 200,000 shares authorized, 124,000 shares issued and outstanding. c. 12.5 percent cumulative preferred, $40 stated value, $42 liquidating value; 140,000 shares authorized, 92,000 shares issued, 88,000 shares outstanding
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:
s
Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 2% stock, $25 par, and 25,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $3,800; second year, $6,400; third year, $41,800; fourth year, $84,750. Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, leave it blank. 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Common stock (dividend per share) $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 $fill in the blank 8
The following is the abstract of the shareholders' equity of Shake Corporation before declaration of cash dividends 12% Preference Share Capital, par P80, 30,000 shares all issued and outstanding P3,000,000 Ordinary Share Capital, par P40, 20,000 shares all issued and outstanding P1,000,000 Retained Earnings 5,500,000 The Board declared dividends of P1,200,000. No dividends were distributed last year. Required: Determine how much dividends the preference and ordinary shares will receive given the following independent situations: d. The Preference share is cumulative and fully participating

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