Exercise 10-5 (Algo) Determine the amount of dividends on preferred stock (LO10-3)Anthony's Athletic Apparel has 1,200 shares of 7%, $100 par value preferred stock the company issued at the beginning of 2023. Allremaining shares are common stock. The company was not able to pay dividends in 2023, but plans to pay dividends of $18,000 in2024.Required:1. & 2. How much of the $18,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholdersin 2024, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?Preferred dividends in arrears for 2023Preferred dividends for 2024Remaining dividends to common stockholdersTotal dividendsCumulative$NonCumulative0 $0

Annual Dividend to Preferred shareholders = Number of preferred share outstanding x Par value per…

Answered: Anthony's Athletic Apparel has 1,200…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Nathan's Athletic Apparel has 1,100 shares of 6%, $100 par value preferred stock the company issued at the beginning of 2020. All remaining shares are common stock. The company was not able to pay dividends in 2020, but plans to pay dividends of $15,000 in 2021.1. & 2. How much of the $15,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2021, assuming the preferred stock is cumulative? What if the preferred stock were noncumulative?
8. On December 31st, 2022 Czervik Construction had 60,000 shares of $50 par value common stock outstanding. On January 1st, 2020, Czervik issued 30,000 shares of $100 par value, 4% cumulative preferred stock. Czervik did not declare dividends in 2020. Czervik declared $220,000 of total dividends in 2021. Czervik declared $220,000 of total dividends in 2022. What was the amount of dividends received by common shareholders in 2022? $100,000 You Answered None of the other answers $160,000 Correct Answer • $80,000
At the beginning of 2023, Barnes & Noble had 240,000 shares of $5 par value common stock outstanding. On August 1, Barnes & Noble issued another 120,000 shares. The Company’s 2023 Net Income was $524,000. In addition, you are given the following portion of Barnes & Noble’s 12/31/2023 Stockholders’ Equity section of its Balance Sheet: Preferred Stock ( 4%, $10 par, 72,000 shares issued and outstanding) $720,000 Calculate Barnes & Noble’s Earnings per Share for 2023 (round to the nearest cent). Select one: a. $1.38 b. $2.06 c. $1.71 d. $1.46 e. $1.81 PreviousSave AnswersFinish attempt ...
Outstanding stock of the Nash's Trading Post, LLC included 30000 shares of $5 par common stock and 8000 shares of 5%, $10 par non-cumulative preferred stock. In 2019, Nash's declared and paid dividends of $3000. In 2020, Nash's declared and paid dividends of $9000. How much of the 2020 dividend was distributed to preferred shareholders? $5000. $7000. $4000. None of these answer choices are correct.
Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $1; outstanding, 400,000 shares) Preferred Stock, 9% (par $10; outstanding, 18,100 shares) Retained Earnings $ 400,000 181,000 957,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017. Three independent cases are assumed: The preferred stock is noncumulative; the total amount of 2018 dividends would be $18,000. The preferred stock is cumulative; the total amount of 2018 dividends would be $15,000. Dividends were not in arrears prior to 2016. Same as Case B, except the amount is $58,000. Case A: Case B: Case C: Required: 1-a. Compute the amount of 2018 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of 2018 dividends per share payable to…
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On Oct. 1, 2022, the board of directors of Purple Inc. declared a $3.00 per share cash dividend on 95,000 shares of $1 par value common stock. The dividend will be paid to stockholders who own shares on Dec. 31, 2022. The dividend will be paid on Feb. 1, 2023. What journal entry, if any, is required on each of the following dates? a. Oct. 1, 2022 b. Dec. 31, 2022 c. Feb. 1, 2023
Wildhorse Appliance Company has 5100 shares of 6%, $50 par value, cumulative preferred stock and 102000 shares of $1 par value common stock outstanding at December 31, 2025, and December 31, 2024. The board of directors declared and paid a $13300 dividend in 2024. In 2025, a total of $60,000 in dividends are declared and paid. What are the dividends received by the preferred stockholders in 2025? O $15300. O $43900. O $30600. O $17300.
Whispering Corporation has 8,700 shares of $100 par value, 9%, preferred stock and 48,300 shares of $10 par value common stock outstanding at December 31, 2020. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2017, what are the dividends in arrears on December 31, 2020, balance sheet? The amount of dividends in arrears on the December 31, 2020
Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on January 1, 2021, for $2,590,000. In December 2023, Sunland declared its first dividend of $770,000. If the preferred stock is cumulative, how much of the $770,000 would be paid to common stockholders?
Crane, Inc. has $500,000, $0.80, no par value preferred shares (50,000 shares) and $1,000,000 of no par value common shares outstanding (80,000 shares). No dividends were paid or declared during 2021 and 2022. The company wants to distribute $582,500 in dividends on December 31, 2023. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Preferred Common Total dividends $ $ Save for Lat
The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 240 1,680 1 1,100 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On Feb ary 5, 2021, TNL Systems purchased 6 million shares at $10 per share. On July 9, 2021, the corporation sold 2 million shares at $12 per share. On November 14, 2023, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to…

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