Bonita, Inc., has 5500 shares of 5%, $100 par value, noncumulative preferred stock and 55000 shares of $1 par value common stockoutstanding at December 31, 2020. If the board of directors declares a $99700 dividend, theO preferred stockholders will receive 1/10th of what the common stockholders will receive.O $27500 will be held as restricted retained earnings and paid out at some future date.O preferred stockholders will receive $27500 and the common stockholders will receive $72200.O preferred stockholders will receive the entire $99700.

Lets understand the basics.Share types are divided into mainly two types which are,(1) Equity…

Answered: Bonita, Inc., has 5500 shares of 5%,…

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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On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par value P10]:[authorized 30,00Oshares); [issued and outstanding 9,000 shares P 90,000]: [Paid-in Capital in Excess of Par 16,000]; [Retained Earnings P146,000]. On March 1, 2021 DEF declared a 10% share capital dividend and accordingly 900 additional shares were issued. DEF shares were trading at P16 per share at the stock market on March 31,2021. For the three months ended March 31,2021, DEF sustained a net loss of P32,000. The balance of DEF retained earnings as of March 31, 2021 should be: * P99,600 P108,600 P114,000 P105,000
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What are the effects on the books of Heaven Inc. upon the cash sale of additional ordinary shares? A. Cash will increase by P900,000.B. Cash will increase by P900,000 and ordinary share capital will increase by P900,000.C. Cash will increase by P900,000, ordinary share capital will increase by P500,000 and share premium will increase P400,000.D. Cash will increase by…
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Marigold Corp. had 307000 shares of common stock issued and outstanding at December 31, 2020. During 2021, no additional common stock was issued. On January 1, 2021, Marigold issued 395000 shares of nonconvertible preferred stock. During 2021, Marigold declared and paid $174000 cash dividends on the common stock and $154000 on the nonconvertible preferred stock. Net income for the year ended December 31, 2021, was $959000. What should be Marigold's 2021 earnings per common share, rounded to the nearest penny? $2.62 $3.12 $1.07 $2.06
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Question-based on, "common stockholders". I have tried it but no answer yet.
On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2021, for $45 per share. Net income for 2021 was $180,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2021. Compute Brisbane's basic and diluted earnings per share (rounded to 2 decimal places) for 2021.
Question-based on, "Common stockholders". I have tried it but not correct. Any help would be appreciated.
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. How much the total shareholders' equity on December 31, 2021? A. 9,650,00B. 11,150,000C. 6,650,000D. 8,150,000
G.Swifty Corporation was organized on January 1, 2020, with authorized capital of 1060000 shares of $10 par value common stock. During 2020, Swifty issued 55000 shares at $11 per share, purchased 5500 shares of treasury stock at $12 per share, and sold 5500 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2020? O $55000 O $0 O $66000 O $11000
Outstanding stock of the Marigold Corporation included 39800 shares of $5 par common stock and 19900 shares of 6%, $10 par noncumulative preferred stock. In 2019, Marigold declared and paid dividends of $8900. In 2020, Marigold declared and paid dividends of $24400. How much of the 2020 dividend was distributed to preferred shareholders? O $15920 $8900 O $11940 O None of these answer choices are correct

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