Archer, Inc., has 10,000 shares of 8%, Pioopar value, noncumulative preferred stockand 40,000 shares of Pi par value commonstock outstanding at December 31, 2008.There were no dividends declared in 2007.The board of directors declares and pays aP120,000 dividend in 2008. What is theamount of dividends received by thecommon stockholders in 2008? *POP80,000O P120,000O P40,000

In this question we need to calculate the dividend for common shares and preferred shares…

Answered: Archer, Inc., has 10,000 shares of 8%,…

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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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.
On January 1st, 2023, Jackson Corporation had 15,000, $2.60 cumulative preferred shares and 20,000 common shares. Jackson did not pay any cash dividends during the previous fiscal year-ended December 31st, 2022. The company pays $45,000 of cash dividends during 2023. Which of the following amounts represents the cash dividends that the preferred shareholders would receive in 2023? $39,000 $45,000 $15,000 $6,000 None of the above. please answer do not image.
Ace Corporation pays its cumulative preferred stock $1.95 per share. There are 40,000 shares of preferred and 80,000 shares of common. In 2016, 2017, and 2018, because of slowdowns in the economy, Ace paid no dividends. Now, in 2019, the board of directors has decided to pay out $600,000 in dividends. The common stockholders receive: Multiple Choice $288,000 $312,000 $444,000 $366,000 3:14 acer
A company issues 10,000 shares of its own $10 par value common stock to the public for $19 per share. Later, 1, 000 of these shares are bought for $21 per share as treasury stock. Which of the Losses on the resale of these shares would impact reported net income for the year although gains would not The par value method and the cost method have the same total impact on stockholders equity Because this is a stock transaction, retained earnings cannot be affected by a re - issuance of these shares
On January 1, 2010, the accounts of Mac Corporation showed the following: Common stock, par SI, authorized 100.000 shares Capital in excess of par value ($2 per share) Retained carnings 60,000 140,000 During 2010, the following transactions occurred affecting stockholders' equity (in the order given) A B. C. D. Issued a 100° stock dividend when the market price was at $5 per share. Purchased treasury stock, 1.000 shares at a total cost of $8.000. Declared and paid cash dividends. SI5.000. Net income for 2010. S25.000
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
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Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (800,000 shares authorized; 460,000 shares issued), $4 par, $1,840,000; Paid-in capital in excess of par—common stock, $800,000; and Retained earnings, $31,940,000. The board of directors declared a 2% stock dividend when the market price of the stock was $12 a share. Healthy Life reported no income or loss for the current year. Required: a. Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates. b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders’ equity. c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital, (2) total retained…

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