(b)Your answer is incorrect.If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders?Common Stock Dividends$I Skysong Corporation issued 102,000 shares of $19 par value, cumulative, 6% preferred stock on January 1, 2021, for $2,550,000. InDecember 2023, Skysong declared its first dividend of $800,000.(a)Your answer is correct.Prepare Skysong's journal entry to record the issuance of the preferred stock. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)Account Titles and ExplanationCashPreferred StockPaid-in Capital in Excess of Par-Preferred StockDebit2550000.Credit1938000612000

Dividend arrears are paid for cumulative preferred stockholders.Dividend arrears are not paid for…

Answered: (b) Your answer is incorrect. If the…

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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Similar questions

Which statement is false? - stock dividend increases the amount of paid in capital -Stock splits cause no change in the amount of the stockholder's equity - stock splits increase the number of shares -stock dividend increases total stockholders equity
In the above example, suppose the firm had paid $80 per share when buying back shares with its $100 in cash. (Assume that the firm can buy back fractional shares.) In this and the following two questions, fill in the blanks in the table below. Cash Other assets Total market value of stock Shares Share price Do not use $ sign. Answer to nearest whole number. The missing value for a is: Before buyback $100 $400 $500 10 $50 After buyback 0 $400 a b C
What can you expect to be different on the announcement date AND after the ex-dividend date when a stock price of a certain company drops after it declares dividends?
Please answer this one
Which of the following statements regarding preferred stock is true? a.Dividends are guaranteed to preferred stockholders. b.Preferred stockholders have a lower chance of receiving dividends than common stockholders do. c.When only one class of stock is issued, it is called preferred stock. d.Cumulative preferred stock has a right to receive regular dividends that were not declared (paid) in prior years.
Po.26. Preferred stock is listed first on a balance sheet because of its dividend and liquidation preferences over common stock. O True O False
Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common?
are my answers correct? if yes help me understand how the computation of answers were arrived at Answer 3.2.1) Calculate the number of shares in issue =240000/30 =8000shares Answer 3.2.2) The dividend per share =60000/8000 = 7.5 per shares Answer 3.2.3) The new share price IN CASE OF DIVIDEND PAYMENT share price = (240000 - 60000)/8000 = 22.5 per share IN CASE OF SHARE REPURCHASE No of shares repurchased = 60000/30 = 2000 shares new number of shares = 8000 - 2000 = 6000 shares new net worth of the company = 240000-60000 = 180000 therefore new share price = 180000/ 6000 = 30 per share 2) Earnings per share (EPS) IN CASE OF DIVIDEND PAYMENT Since the number of shares are not reducing EPS will remain same at 3 per share IN CASE OF SHARE REPURCHASE EPS = (8000*3)/6000 = 4 per share 3)…
What is the impact of treasury stock on the presentation of stockholder’s equity? Treasury stock is added to paid-in capital, subtracted from common stock, and added to retained earnings. Treasury stock is subtracted from paid-in capital, common stock, and retained earnings thereby reducing stockholder’s equity. Treasury stock is subtracted from paid-in capital, added to common stock, and retained earnings. Treasury stock is added to paid-in capital, common stock, and retained earnings thereby increasing stockholder’s equity. Stockholders’ equity can increase due to: Inventory is increased. Retained Earnings decrease. Dividends are distributed. Stock is issued and common stock is increased. The Cash Dividends Payable account incurs a liability when: On the record date. On the last day of the period. On the payment date. On the declaration date. provide the correc answer and explain what ciorrect choices
Why are dividends important in determining the present value of a share? How would you account for the positive market value of company’s share which currently pays no dividend? (300 words)ASAP
What does it mean to state that a company’s book value per share of common Q stock is less than its market value per share of common stock?

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(b) Your answer is incorrect. If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders? Common Stock Dividends $