Analyzing Cash Dividends on Preferred and Common StockPotter Company has outstanding 17,000 shares of $50 par value, 8% preferred stock and 60,000 shares of $5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $292,000 in the second year, and $68,000 in the thirdyear.(a) If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.Distibution toPreferred Common StockYear 1$Year 2$Year 3 $$$$(b) If the preferred stock is noncumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.Distibution toPreferred Common StockYear 1$Year 2 $Year 3 $$$$

The objective of the question is to calculate the total amount of cash dividends paid to each class…

Answered: Analyzing Cash Dividends on Preferred…

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
Sandpiper Company has 20,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 20Y1 $60,000 20Y2 24,000 20Y3 90,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock(dividends per share) Common Stock(dividends per share) 20Y1 fill in the blank fill in the blank 20Y2 fill in the blank fill in the blank 20Y3 fill in the blank fill in the blank
[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
A-7
Identifying and Analyzing Financial Statement Effects of Stock TransactionsMelo Company reports the following transactions relating to its stock accounts in the current year. Use the financial statement effects template to indicate the effects from each of these transactions.(a) Mar. 2 Issued 7,000 shares of $1 par value common stock at $30 cash per share.(b) Apr. 14 Issued 10,500 shares of $100 par value, 8% preferred stock at $250 cash per share.(c) June. 30 Purchased 2,100 shares of its own common stock at $22 cash per share.(d) Sep. 25 Sold 1,050 shares of its treasury stock at $26 cash per share.Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.Note: Indicate a decrease in an account category by including a negative sign with the amount.
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
Green Planet Corporation has 5,400 shares of noncumulative 13% preferred stock with a $2 par value and 21, 700 shares of common stock with a $0.01 par value. During its first two years of operation, Green Planet declared and paid the following total cash dividends. Year 1 total cash dividends $ 800 Year 2 total cash dividends 2,170 Compute the dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative.
Dividends Per Share Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative preferred 3% stock, $25 par, and 38,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $8,700; second year, $14,100; third year, $72,440; fourth year, $116,740. 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) 0.29 0.47 0.75 V Common stock (dividend per share) $ $ 2.48 Feedback
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

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