6:31Fargo Company's outstanding stock consists of 800 shares of noncumulative 5% preferred stock with a $10 par value and 3,400 shares of common stock with a $1 parvalue. During the first three years of operation, the corporation declared and paid the following total cash dividendsyear 1year 2year 3Dividends Declared& Paid$ 24,000$ 7,000$ 33,000The amount of dividends paid to preferred and common shareholders in year 1 is:Multiple Choice$400 preferred; $23,600 common.$24,000 preferred; $0 common.$8,000 preferred; $16,000 common.$12,000 preferred, $12,000 common.$21,000 preferred; $3,000 common.4

Dividend is the portion of profit distributed to the shareholders. It is distributed to the…

Answered: 31 Fargo Company's outstanding stock…

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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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.
Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, Year 1: 6.5% cumulative preferred stock, $100 par value; authorized, 18,000 shares; issued and outstanding, 9,000 shares Common stock, $4 par value; authorized, 340,000 shares; issued and outstanding, 204,000 shares Additional paid-in capital: preferred stock Additional paid-in capital: common stock Retained earnings Dividends have been declared and paid for Year 1. The average issue price per share of Grant's preferred stock was: Multiple Choice O $52.50. $100.00. $105.00. $ 900,000 $ 816,000 $ 45,000 $ 1,500,000 $ 920,000
On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common stock–$10 par value, 86,000 shares authorized, issued, and outstanding $ 860,000 Paid-in capital in excess of par value, common stock 286,000 Retained earnings 976,000 Total stockholders’ equity $ 2,122,000 Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,400 shares of its own common stock at $39 per share on October 11. Sold 1,350 treasury shares on November 1 for $45.
Treasury StockPomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Pomona sold 1,500 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.c. Assume that Pomona sold the remaining 500 shares of treasury stock at $20 per share. Prepare the journal entry to record the sale of this treasury stock. General Journal Ref. Description Debit Credit a. Answer Answer Answer Common stock Answer Answer Answer Answer Answer Issued shares of common stock. Answer Answer Answer 10% Preferred stock Answer Answer Answer Answer Answer Issued shares of preferred stock. Answer Answer…
Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 5% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,700 Year 2 $ 6,700 Year 3 $ 35,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is: Multiple Choice $8,500 preferred; $36,400 common. $15,200 preferred; $29,700 common. $25,500 preferred; $19,400 common. $19,700 preferred; $25,200 common. $17,000 preferred; $27,900 common.
Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,700 Year 2 $ 9,400 Year 3 $ 40,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
provide answer for A, B and C
22 Lincoln Liberty Limited issued 8,000 shares of $10 par value common stock at $36 cash per share. At the end of the year, Lincoln reported net income of $25,000 and issued dividends of $2 per share. Prepare the journal entries required for the issuances of stock and dividends.
Sweet Company’s outstanding stock consists of 1,900 shares of cumulative 5% preferred stock with a $100 par value and 10,900 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,900 Year 2 $ 6,900 Year 3 $ 36,500 The amount of dividends paid to preferred and common shareholders in year 3 is:Multiple Choice $28,500 preferred; $8,000 common. $9,500 preferred; $27,000 common. $0 preferred; $36,500 common. $18,700 preferred; $17,800 common. $36,500 preferred; $0 common.
1

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