Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of January 1, 2020, Bickle's shareholders' equity section of the balance sheet reported the following: Common shares (outstanding: 30,000 shares ) $360,000 During 2020, the following transactions related to shareholders' equity occurred, in the order given: Feb 14: Reacquired and canceled 5,000 common shares at $12 cash per share from shareholders. Apr 2: Declared and paid a 10% stock dividend when the market price per share was $13 per share. May 15: Declared a cash dividend of $5 per share to all shareholders of record on May 31. The dividend is payable June 15. June 15: Paid the dividend from May 15. Required: Provide the journal entries to record the above transactions, using the table below to record your answers. NOTE: USE FULL, PROPER ACCOUNT NAMES AS USED IN CLASS AND IN THE TEXTBOOK - NO ABRREVIATIONS. ENTER DOLLAR AMOUNTS IN WHOLE DOLLARS ONLY: NO COMMAS, NO DOLLAR SIGN, NO DECIMALS. Date Account Name(s) Debit Credit Feb 14 Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Apr 2 Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. May 15 Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11. Fill in the blank, read surrounding text. Blank 12. Fill in the blank, read surrounding text. Jun 15 Blank 13. Fill in the blank, read surrounding text. Blank 14. Fill in the blank, read surrounding text. Blank 15. Fill in the blank, read surrounding text. Blank 16. Fill in the blank, read surrounding text. Part B Hugs 'n Mugs Corporation had the following share capital at the beginning of their 2020 fiscal year: Common shares (outstanding, 22,000 shares) $220,000 Preferred shares (5% dividend; outstanding, 5,000 shares) $50,000 At the 2020 fiscal year-end, the board of directors decided to declare a total dividend of $10,000. No dividends were declared in 2019 or 2018. Determine the breakdown in total dividends distributed between preferred shareholders and common shareholders, assuming: 1) the preferred shares are non-cumulative 2) the preferred shares are cumulative. Record your answers in this table (ENTER WHOLE NUMBERS ONLY WITH NO DOLLAR SIGN, NO DECIMALS, AND NO SPECIAL CHARACTERS) : Total Paid to Preferred Shareholders Total Paid to Common Shareholders Scenario 1): Blank 17. Fill in the blank, read surrounding text. Blank 18. Fill in the blank, read surrounding text. Scenario 2): Blank 19. Fill in the blank, read surrounding text

Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of January 1, 2020, Bickle's shareholders' equity section of the balance sheet reported the following: Common shares (outstanding: 30,000 shares ) $360,000 During 2020, the following transactions related to shareholders' equity occurred, in the order given: Feb 14: Reacquired and canceled 5,000 common shares at $12 cash per share from shareholders. Apr 2: Declared and paid a 10% stock dividend when the market price per share was $13 per share. May 15: Declared a cash dividend of $5 per share to all shareholders of record on May 31. The dividend is payable June 15. June 15: Paid the dividend from May 15. Required: Provide the journal entries to record the above transactions, using the table below to record your answers. NOTE: USE FULL, PROPER ACCOUNT NAMES AS USED IN CLASS AND IN THE TEXTBOOK - NO ABRREVIATIONS. ENTER DOLLAR AMOUNTS IN WHOLE DOLLARS ONLY: NO COMMAS, NO DOLLAR SIGN, NO DECIMALS. Date Account Name(s) Debit Credit Feb 14 Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Apr 2 Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. May 15 Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11. Fill in the blank, read surrounding text. Blank 12. Fill in the blank, read surrounding text. Jun 15 Blank 13. Fill in the blank, read surrounding text. Blank 14. Fill in the blank, read surrounding text. Blank 15. Fill in the blank, read surrounding text. Blank 16. Fill in the blank, read surrounding text. Part B Hugs 'n Mugs Corporation had the following share capital at the beginning of their 2020 fiscal year: Common shares (outstanding, 22,000 shares) $220,000 Preferred shares (5% dividend; outstanding, 5,000 shares) $50,000 At the 2020 fiscal year-end, the board of directors decided to declare a total dividend of $10,000. No dividends were declared in 2019 or 2018. Determine the breakdown in total dividends distributed between preferred shareholders and common shareholders, assuming: 1) the preferred shares are non-cumulative 2) the preferred shares are cumulative. Record your answers in this table (ENTER WHOLE NUMBERS ONLY WITH NO DOLLAR SIGN, NO DECIMALS, AND NO SPECIAL CHARACTERS) : Total Paid to Preferred Shareholders Total Paid to Common Shareholders Scenario 1): Blank 17. Fill in the blank, read surrounding text. Blank 18. Fill in the blank, read surrounding text. Scenario 2): Blank 19. Fill in the blank, read surrounding text

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of January 1, 2020, Bickle's shareholders' equity section of the balance sheet reported the following:

Common shares (outstanding: 30,000 shares ) $360,000

During 2020, the following transactions related to shareholders' equity occurred, in the order given:

Feb 14: Reacquired and canceled 5,000 common shares at $12 cash per share from shareholders.
Apr 2: Declared and paid a 10% stock dividend when the market price per share was $13 per share.
May 15: Declared a cash dividend of $5 per share to all shareholders of record on May 31. The dividend is payable June 15.
June 15: Paid the dividend from May 15.

Required:

Provide the journal entries to record the above transactions, using the table below to record your answers. NOTE: USE FULL, PROPER ACCOUNT NAMES AS USED IN CLASS AND IN THE TEXTBOOK - NO ABRREVIATIONS. ENTER DOLLAR AMOUNTS IN WHOLE DOLLARS ONLY: NO COMMAS, NO DOLLAR SIGN, NO DECIMALS.

Date	Account Name(s)	Debit	Credit
Feb 14	Blank 1. Fill in the blank, read surrounding text.	Blank 2. Fill in the blank, read surrounding text.
	Blank 3. Fill in the blank, read surrounding text.		Blank 4. Fill in the blank, read surrounding text.


Apr 2	Blank 5. Fill in the blank, read surrounding text.	Blank 6. Fill in the blank, read surrounding text.
	Blank 7. Fill in the blank, read surrounding text.		Blank 8. Fill in the blank, read surrounding text.


May 15	Blank 9. Fill in the blank, read surrounding text.	Blank 10. Fill in the blank, read surrounding text.
	Blank 11. Fill in the blank, read surrounding text.		Blank 12. Fill in the blank, read surrounding text.


Jun 15	Blank 13. Fill in the blank, read surrounding text.	Blank 14. Fill in the blank, read surrounding text.
	Blank 15. Fill in the blank, read surrounding text.		Blank 16. Fill in the blank, read surrounding text.

Part B

Hugs 'n Mugs Corporation had the following share capital at the beginning of their 2020 fiscal year:

Common shares (outstanding, 22,000 shares) $220,000
Preferred shares (5% dividend; outstanding, 5,000 shares) $50,000

At the 2020 fiscal year-end, the board of directors decided to declare a total dividend of $10,000. No dividends were declared in 2019 or 2018.

Determine the breakdown in total dividends distributed between preferred shareholders and common shareholders, assuming:

1) the preferred shares are non-cumulative
2) the preferred shares are cumulative.

Record your answers in this table (ENTER WHOLE NUMBERS ONLY WITH NO DOLLAR SIGN, NO DECIMALS, AND NO SPECIAL CHARACTERS) :

	Total Paid to Preferred Shareholders	Total Paid to Common Shareholders
Scenario 1):	Blank 17. Fill in the blank, read surrounding text.	Blank 18. Fill in the blank, read surrounding text.
Scenario 2):	Blank 19. Fill in the blank, read surrounding text.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.