A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding $ 1,700,000 Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding 540,000 Common stock, $5 par, 490,000 shares authorized, issued, and outstanding 2,450,000 Total paid-in capital $ 4,690,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third 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 2 decimal places.) c. What was the average issue price of each type of preferred stock? A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding $ 1,700,000 Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding 540,000 Common stock, $5 par, 490,000 shares authorized, issued, and outstanding 2,450,000 Total paid-in capital $ 4,690,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third 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 2 decimal places.) c. What was the average issue price of each type of preferred stock? a. Cumulative Preffered Stock Non-Cum Preffered Stock Common Stock b. Cumulative Preffered Stock per share Non-Cum Preffered Stock per share Common Stock per share c. Cumulative Preffered Stock per share Non-Cum Preffered Stock per share

A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding $ 1,700,000 Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding 540,000 Common stock, $5 par, 490,000 shares authorized, issued, and outstanding 2,450,000 Total paid-in capital $ 4,690,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third 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 2 decimal places.) c. What was the average issue price of each type of preferred stock? A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding $ 1,700,000 Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding 540,000 Common stock, $5 par, 490,000 shares authorized, issued, and outstanding 2,450,000 Total paid-in capital $ 4,690,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third 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 2 decimal places.) c. What was the average issue price of each type of preferred stock? a. Cumulative Preffered Stock Non-Cum Preffered Stock Common Stock b. Cumulative Preffered Stock per share Non-Cum Preffered Stock per share Common Stock per share c. Cumulative Preffered Stock per share Non-Cum Preffered Stock per share

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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Question

A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows.


Stockholders' equity:
Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding	$	1,700,000
Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding		540,000
Common stock, $5 par, 490,000 shares authorized, issued, and outstanding		2,450,000
Total paid-in capital	$	4,690,000

Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third 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 2 decimal places.)

c. What was the average issue price of each type of preferred stock?

A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows.


Stockholders' equity:
Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstanding	$	1,700,000
Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding		540,000
Common stock, $5 par, 490,000 shares authorized, issued, and outstanding		2,450,000
Total paid-in capital	$	4,690,000

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 2 decimal places.)

c. What was the average issue price of each type of preferred stock?

a.	Cumulative Preffered Stock
	Non-Cum Preffered Stock
	Common Stock
b.	Cumulative Preffered Stock	per share
	Non-Cum Preffered Stock	per share
	Common Stock	per share
c.	Cumulative Preffered Stock	per share
	Non-Cum Preffered Stock	per share

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