ABC Inc had 10,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding 2021. Assuming that total dividends declared in 2021 were $80,000 and that the 2 points preferred stock is cumulative with two years' preferred dividends in arrears on December 31, 2020, the preferred & common stockholders should receive 2021 dividends totaling: $48000 $36000 $44000 $8000 $80,000

ABC Inc had 10,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding 2021. Assuming that total dividends declared in 2021 were $80,000 and that the 2 points preferred stock is cumulative with two years' preferred dividends in arrears on December 31, 2020, the preferred & common stockholders should receive 2021 dividends totaling: $48000 $36000 $44000 $8000 $80,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sarasota Rock Inc. has 7670 shares of 5%, $100 par value, cumulative preferred stock and 46020…

A: Cumulative Preference Stock Includes That If In Any Year Dividends Not Paid Then They Must Give The…

Q: On December 31, 2020, Berclair Inc. had 340 million shares of common stock and 3 million shares of…

A: The weighted average shares are calculated on the basis of the time period outstanding for the…

Q: The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following:…

A: The stock dividend can be defined as the distribution of common shares to shareholders instead of…

Q: On January 1, 2021, Tonge Industries had outstanding 760,000 common shares ($1 par) that originally…

A: Answer:- Formula:- Earnings per share = (Net income - Preferred dividends) / Weighted average of…

Q: What dividends are the preferred stockholders entitled to receive in the current year before any…

A: Answer: $464,000

Q: The shareholders' equity of Broncos Corporation includes $300,000 of $1 par common stock and…

A: Dividend per share: Dividend per share is calculated for Preferred stock as well as Common Stock.…

Q: 1. At January 1, 2019, Marion Company had 400,000 shares of common stock issued and outstanding,…

A: Earnings per share are the amount that is earned by the equity shareholder on each share in which…

Q: Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of…

A: A dividend represents the distribution of profit among the shareholders.

Q: On January 2, 2017, Marigold Corporation issued 76000 shares of 6% preferred stock at $100 par…

A: A dividend is part of a company's profit which is the distribution of a part of a corporation's…

Q: Skysong Corporation began business in 2020 by issuing 79000 shares of $5 par common stock for $6 per…

A: The statement of shareholders equity defines the total outstanding shares and other stock related to…

Q: Sirap Co. has 10000 shares of 6% $100 par preferred stock outstanding. The company also has 100000…

A: Lets understand the basics.Stocks are divided into mainly two types which are,(1) common shares(2)…

Q: Sheffield, Inc. has 2000 shares of 6%, $50 par value, cumulative preferred stock and 40000 shares of…

A: Dividend means the amount of money paid by the entity to the shareholders of the entity out of…

Q: Common stock, $2 par, 200,000 shares issued and outstanding On October 1, 2020, the company…

A: Stock Dividend distribution is a method of capitalizing the retained earning. Stock dividend value…

Q: Waterway Inc., has 3700 shares of 5%, $50 par value, cumulative preferred stock and 99400 shares of…

A: Introduction Preferred dividends are paid before the payment of dividends on common stock.…

Q: The following information was extracted from MSU Inc.'s 2020 annual report: Common stock -100…

A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…

Q: ABC Corp has cumulative 10% has 10,000 preferred shares at par value $30 and also has 15,000 common…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Coronado, Inc. has 1080 shares of 7%, $10 par value, cumulative preferred stock and 49600 shares of…

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: Bridgeport Corporation has outstanding 10,700 shares of $100 par value, 6% preferred stock and…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Outstanding stock of the Tamarisk, Inc. included 44000 shares of $5 par common stock and 20000…

A: Preferred dividends are the financial payments that an organization makes to its preferred…

Q: Flint Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common.…

A: Stockholders’ Equity: The amount of assets remaining in a business after all liabilities have been…

Q: Cullumber Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par…

A: Calculation of retained earnings: Beginning retained earnings 4,431,000 Add: Net income…

Q: At January 1, 2020, Teal Company’s outstanding shares included the following. 276,000 shares of…

A: Notes: 1) Net income available for common shareholders = Net Income - Preferred Share Dividend =…

Q: At January 1, 2020, Wildhorse Company's outstanding shares included the following. 300,000 shares of…

A: Earnings Per Share: A financial ratio called earnings per share (EPS) shows how much net income a…

Q: Texas, Inc. has net income for 2019 of $555,000. At January 1, 2019, the company had outstanding…

A: Earning per share refers to the amount of net earnings attributable to one unit of common shares.…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

ABC Inc had 10,000 shares of 6%, $20 par value preferred stock and
15,000 shares of $25 par value common stock outstanding 2021.
Assuming that total dividends declared in 2021 were $80,000 and that the
2 points
preferred stock is cumulative with two years' preferred dividends in
arrears on December 31, 2020, the preferred & common stockholders
should receive 2021 dividends totaling:
$48000
$36000
$44000
$8000
$80,000
Preferred
Dividend in
2021
Common
Stock
Dividend in
2021

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sheffield Inc., has 2300 shares of 5%, $50 par value, cumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $4000 dividend in 2019. In 2020, $21900 of dividends are declared and paid. What are the dividends received by the common stockholders in 2020? $5750 $11500 $14400 $7500
On January 1, 2020, Windsor Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,040,000. The company issued 235,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Windsor Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $535,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 19 Dec 15 Debit
On December 31, 2020, Berclair Inc. had 420 million shares of common stock and 15 million shares of 9%, $100 par value cumulativepreferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stockBerclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for theyear ended December 31, 2021, was $750 million.Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2016. Theoptions were exercisable as of September 13, 2020, for 63 million common shares at an exercise price of $60 per share. During 2021,the market price of the common shares averaged $70 per share.The options were exercised on September 1, 2021.Required:Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e.,10,000,000 should be entered as 10). Do not round…
XYZ CO. had 200 shares of common stock outstanding 12 31, 2020. July 1, 2021 xyz issued 52 shares for cash. On January 1, 2021 xyz issued 22 shares of convertible preferred stock. The preferred stock had a par value of shares $100 per share and paid 6% dividend. Each share of preferred stock is convertible into 9 shares of common. During 2021 xyz paid regular dividend on the preferred and common stock. Net income was 320 Calculate xyz basic and diluted earning per share 2021.
dave inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of $5 per share) on september 10 2021. the stock was trading for $35 at the declaration date. the stock were distributed in the form of dividends on october 20 2021. prepare journal entries on september 10 and october 20. what is the equivalent stock split of this 40% stock dividend?
Indicate the amount of annual dividend on each issue of the preferred shares by completing the last column of the above table Assume that there are one year of dividends in arrears at the beginning of 2020, and Essex declared total dividends of $40,000 in 2020. What is the amount of dividends that the common shareholders will receive in 2020?
Splish Brothers Inc. has 10,800 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021.If Splish Brothers wants to pay $395,000 of dividends in 2022, what amount of dividends will common stockholders receive? Dividends allocated to common stock $enter Dividends allocated to common stock in dollars
Company B had net income for the fiscal year ended December 31, 2020 of $5 million. There were 500,000 common shares outstanding throughout 2020. The average market price of the common shares for the entire fiscal year was $50. Company tax rate was 25% for 2020. Company B had the following potential common shares outstanding during 2020: • Options to buy 100,000 common shares at $45 per share. • 100,000 convertible preferred shares entitled to a cumulative dividend of $10 per share. Each preferred share is convertible into 1.5 common shares. • 4% convertible bonds with a principal amount of $30 million, issued at par. Each $1,000 bond is convertible into 25 common shares. For the fiscal year ended December 31, 2020, what is the basic and diluted EPS using IFRS?
During 2021 if Anya Corporation has issued common stock equal to 30% ofthe outstanding common stock at a price of 120% of the par value, the number of shares issued and outstanding would be________ and the total paid-in capital would be $_________
Required:1. Indicate the amount of annual dividend on each issue of the preferred shares by completingthe last column of the above table 2. Assume that there are one year of dividends in arrears at the beginning of 2020, and Essexdeclared total dividends of $40,000 in 2020. What is the amount of dividends that thecommon shareholders will receive in 2020?
Marigold, Inc. has 10500 shares of 4%, $100 par value, noncumulative preferred stock and 105000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $49300 dividend in 2019. In 2020, $111000 of dividends are declared and paid, What are the dividends received by the preferred and common shareholders in 2020? Preferred Common $42000 $69000 $0 $111000 $79500 $31500 $55500 $55500 96 5 6 7 d
Bramble, Inc. has 10700 shares of 5%, $100 par value, noncumulative preferred stock and 107000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $50500 dividend in 2019. In 2020, $109300 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020? Preferred Common $109300 $60800 $48500 $53500 $55800 $54650 $54650