A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows. Notice that thecompany has two classes of preferred stock with different features, in addition to common stock.Stockholders' equity:Preferred stock, 9% cumulative, $50 par, 31,000 shares authorized, issued, and outstandingPreferred stock, 12% noncumulative, $100 par, 5,700 shares authorized, issued, and outstandingCommon stock, $5 par, 360,000 shares authorized, issued, and outstandingTotal paid-in capitalAssume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During thethird year, Walland Corporation paid total cash dividends of $736,000.a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock.b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers to 2decimal places.)c. What was the average issue price of each type of preferred stock?a.Cumulative preferred stockNoncumulative preferred stockCommon stockb. Cumulative preferred stockC.$1,550,000570,0001,800,000$3,920,000Noncumulative preferred stockCommon stockCumulative preferred stockNoncumulative preferred stockper shareper shareper shareper shareper share

Answer:- Dividend meaning:- Dividend is that part of profit which is paid to the shareholders of an…

Answered: A portion of the stockholders' equity…

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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Your answer is partially correct. Try again. The stockholders' equity section of Bonita Corporation consists of common stock ($10 par) $2,400,000 and retained earnings $527,000. A 10% stock dividend (24,000 shares) is declared when the market price per share is $14. Show the before-and-after effects of the dividend on the following. (a) The components of stockholders' equity. (b) Shares outstanding. (c) Par value per share. Stockholders' equity Outstanding shares. Par value per share x ✓ Before Dividend 2927000 After Dividend
The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows: CREIGHTON COMPANY As of December 31, Year 3 Stockholders’ equity Preferred stock, $10 stated value, 7% cumulative,300 shares authorized, 50 issued and outstanding $ 500 Common stock, $10 par value, 250 shares authorized,100 issued and outstanding 1,000 Common stock, class B, $20 par value, 400 sharesauthorized, 150 issued and outstanding 3,000 Common stock, no par, 150 shares authorized,100 issued and outstanding 2,200 Paid-in capital in excess of stated value—preferred 600 Paid-in capital in excess of par value—common 1,200 Paid-in capital in excess of par value—class B common 750 Retained earnings 7,000 Total stockholders’ equity $ 16,250 Requireda. Assuming the preferred stock was originally issued for cash, determine the amount of cash collected when the stock was issued.b. Based on the class B common stock alone,…
Can you answer dividend per share (b.) The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 4% cumulative, 170,000 shares authorized, 47,000 shares issued and outstanding $ 705,000 Common stock, $12 stated value, 220,000 shares authorized, 47,000 shares issued and ?? shares outstanding 564,000 Paid-in capital in excess of par—Preferred 37,000 Paid-in capital in excess of stated value—Common 141,000 Total paid-in capital $ 1,447,000 Retained earnings 320,000 Treasury stock, 3,000 shares (33,000 ) Total stockholders’ equity $ 1,734,000 Note: The market value per share of the common stock is $26, and the market value per share of the preferred stock is $19. Required What is the dividend per share on the preferred…
The balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 shares outstanding $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding shares
Journalize transactions, post, and prepare a stockholders' equity section; calculate ratios. P11-2B The stockholders' equity accounts of Warden Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (8,000 common shares) $ 200,000 1,000,000 16,000 1,400,000 1,716,000 20,000 (LO 2, 3, 5, 7, 8), AP GLS During 2014 the corporation had these transactions and events pertaining to its stock- holders' equity. Feb. Issued 20,000 shares of common stock for $160,000. Purchased 4,000 shares of common stock for the treasury at a cost of $16,000. Declared a 9% cash dividend on preferred stock, payable December 15. Declared a $0.30 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. Nov. 10…
K Michael Corporation has the following information as of December 31 of the current year: Common Stock, $1 par value (authorized 16,261 shares) Treasury Stock (2,300 shares at cost) Common Stock Outstanding (2,600 shares) Based on the information above, how many shares of common stock are issued? A. 2,300 OB. 2,600 C. 4,900 D. 16,261 $15,000
The stockholders' equity section on the December 31 balance sheet of Chemfast Corporation reported the following amounts: Contributed Capital Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) Additional Paid-In Capital, Preferred Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,200 shares) Retained Earnings Treasury Stock, 1,000 Preferred shares at cost $108,000 15,390 632,400 32,000 (9,600) Assume that no shares of treasury stock have been sold in the past. Required: Complete the following statements. (Decreases should be indicated by a minus sign. Round per share to 2 decimal places.) 1. The number of shares of preferred stock issued was 2. The number of shares of preferred stock outstanding was 3. The average issue price of the preferred stock was per share 4. The average issue price of the common stock was 5. The treasury stock transaction increased (decreased) stockholders' equity by 6. The…
Calculate the dividends for the following: The board of directors declared preferred dividends and common dividends of $2.45 per share. The preferred stock was $200 par, 8% stock with 2,200 shares outstanding. The common stock is $5 par value stock with 5,600 shares outstanding. Show your calculations for each type of stock as well as the total of the dividends to be paid. a. Dividends for Preferred stockholders. b. Dividends for Common stockholders. c. Total cash dividends to be paid.
The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows. Stockholders' Equity Paid-in capital Preferred stock, ? par value, 6% cumulative, 110,000 shares authorized, 41,000 shares issued and outstanding Common stock, $20 stated value, 160,000 shares authorized, 41,000 shares issued and ?? shares outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated value-Common Total paid-in capital Retained earnings Treasury stock, 3,000 shares Total stockholders' equity Note: The market value per share of the common stock is $42, and the market value per share of the preferred stock is $13. Required a. What is the par value per share of the preferred stock? b. What is the dividend per share on the preferred stock? c. What is the number of common stock shares outstanding? d. What was the average issue price per share (price for which the stock was issued) of the common stock? f. If Mann Equipment Company…
Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 20Y4 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)
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The equity sections for Fairhaven Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$10 par value, 130,000 shares authorized, 58,010 shares issued, 5,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($110,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $1.20 per share cash dividend, payable on January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $1.20 per share cash dividend, payable on April 10. July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared…

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