Lance corporation has the following shareholders equity accountsPreference share 10%, par 50 issued and outstanding 10,000 shares500,000Ordinary share, 80 par issued and outstanding 50,000 shares4,000,000Retained earnings1,500,000The company did not declare dividend for 3 years, but for the current year 1M cashdividend was declared and paid. If the preference shares are cumulative andparticipating how much would be the earning per share of each type of stockSample answer: Preference30;Ordinary25

Cumulative prefrence share : These are the shares on which dividend is payable for all the year for…

Answered: ance corporation has the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
The owners' equity accounts for Vulcano International are shown here: Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity a. Assume the company's stock currently sells for $47 per share and a stock dividend of 8 percent is declared. How many new shares will be distributed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. New shares issued $ 80,000 200,000 660,000 $ 940,000 Show the new balance for each equity account. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Common stock Capital surplus Retained earnings Total owners' equity
ABC company has the following data at year end:10% noncumulative preference shares capital, P1,000 par, P1,400 liquidation value, 500 issued and outstanding shares Ordinary share capital, P500 par, 5,000 issued and outstanding shares Total shareholders' equity of 3,600,000 No dividends in arrears. What is the book value per share - preference?"
1. ABC CO.. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000 Ordinary share, P6 par P300,000, Accumulated Profit P100,000. Dividends have not been declared for 3 years including the current year. On October 1, a cash dividend of P80,000 has been declared by the Board of Directors. Assuming that the preference share is cumulative and fully participating, compute for the dividend per share for preference share 2.ABC COrp issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par value preference shares for a total of P350,000 cash and an equipment with acquisition cost of P900, 000, book value of P450, 000 and fair value of P500, 000. On that date, the fair value of ordinary shares is P30. How much is allocated to the preference shares? (google forms) prepare the journal entry to record the issuance of the shares. 3. Company has 2,000 shares of 5%, P100 par non-cumulative preference share outstanding on December 31,…
lyah Company provided the following data at year-end: Authorized share capital 5,000,000 Unissued share capital 2,000,000 Subscribed share capital 1,000,000 Subscription receivable 400,000 Share premium 500,000 Retained earnings unappropriated 600,000 Retained earnings appropriated 300,000 Treasury shares 200,000 What total amount should be reported as shareholders' equity? Select the correct response O 5,100,000 O4,400,000 4,500,000 4,800,000 < Previous
GHI Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000 Ordinary share, P6 par P300,000, Accumulated Profit P100,000. Dividends have not been declared for 3 years including the current year. On October 1, a cash dividend of P80,000 has been declared by the Board of Directors. Assuming that the preference share is cumulative and fully participating, compute for the dividend per share for preference share (round off to two decimal places).

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