Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $25; outstanding. 10,000 shares) $250,000 Common shares (outstanding. 30,000 shares) 600,000 Retained earnings 281,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed:
Q: Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd.…
A: Solution:- Preparation of the journal entries as follows under:- Note:- Error in accounting entry…
Q: Carleton Builders Ltd. recorded the following summarized transactions during the current year:a. The…
A: No violation has been identified. Correctly applied revenue accounting principle.
Q: The records of Seahawks Company reflected the following balances in the stockholders' equity…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Selected transactions completed by Primo Discount Corporation during the current fiscal year are as…
A: Journal entries refers to the systematic documentation of the financial transactions of a company in…
Q: The records of Hoffman Company reflected the following balances in the shareholders' equity accounts…
A: The preference dividend is paid to the shareholders before any other dividend. The cumulative…
Q: When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48…
A: Dividend Arrearage = Preference Share amount per share * No. of share preference shares issued *…
Q: The records of Seahawks Company reflected the following balances in the stockholders' equity…
A: Preferred Shareholders get preference of dividend over common shareholders. When the Preferred…
Q: The 2017 compaatve balance shot and income statement of Orangvile Group Inc tolows mICthe loon to…
A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…
Q: Chicago Company reported the following information at the end of the current year: Common…
A: The dividend can be paid to the shareholders from the retained earnings of the business. The…
Q: At the end of the prior annual reporting period, Barnard Corporation's balance sheet showed the…
A: Lets understand the basics.Stockholders Equity consist of the share which the shareholders has…
Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 4,500 shares of…
A: Dividend is to be distributed to the shareholders.First dividend is to be paid to the preferred…
Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…
A: Answer 1) Account Titles and Explanation Debit Credit Dividends $ 1,20,000…
Q: Martinez Corp. is authorized to issue both preferred and common stock. The par value of the…
A: The cash received in excess of the par value of shares is reported as Additional paid-in capital or…
Q: The following selected transactions occurred for Corner Corporation: Feb. 1 Purchased 420…
A: Journal entries represent the starting point in the accounting cycle, they are used to record every…
Q: When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51…
A: Lets understand the basics.Shares are basically divided into two types which are,(1) Common stock(2)…
Q: The records of Hollywood Company reflected the following balances in the stockholders' equity…
A: Dividend on Preferred stock = 9,000 shares x $10 x 10% = $9,000
Q: The records of Seahawks Company reflected the following balances in the stockholders' equity…
A: Introduction: If preferred stocks are cumulative, then all dividends in arrear will be paid to…
Q: Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the…
A: Error in accounting entry can be corrected by either reversing entry which is incorrect and entering…
Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…
A: Dividend: It is the distribution of profit earned by a company its common stock shareholders. In…
Q: Selected transactions completed by Primo Discount Corporation during the current fiscal year are as…
A:
Q: When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51…
A: Dividend is defined as the distribution of profits made by a corporation to its preferred and common…
Q: Calgate Company had the following shares outstanding and retained earnings at the end of the current…
A: Cumulative Preference Share: When a corporation goes into liquidation, cumulative preference shares…
Q: Colgate Company had the following shares outstanding and retained earnings at the end of the current…
A: The objective of the question is to calculate the amount of dividends payable to each class of…
Q: A recent annual report for Malestrom Incorporated disclosed that the company declared and paid…
A: The dividend is a method of distributing profits among the shareholders. It can be distributed by…
Q: The records of Seahawks Company reflected the following balances in the stockholders' equity…
A: Dividend Per Share (DPS) is calculated by dividing the earnings available to shareholders by the…
Q: The records of Seahawks Company reflected the following balances in the stockholders' equity…
A: Solution:- Calculation of the total and per share amounts that would be paid to the common…
Q: Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the…
A: Payment of dividend out of profits indicate that the dividends are distributed out of retained…
Q: Calgate Company had the following shares outstanding and retained earnings at the end of the current…
A: Answer - Cumulative Preference Share - Cumulative preference shares are those type of shares that…
Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…
A: 1) Date Account Journal Debit $ Credit $ 1 Dividend - Preferred stock 280,000 Dividends…
Q: Common stock ($10 par value; 48,000 shares outstanding) Preferred stock, 15% ($15 par value; 9,500…
A: Note: 1 ) Preference shareholders are eligible for the dividend to be paid first. 2 ) Cumulative…
Q: Selected transactions completed by Primo Discount Corporation during the current fiscal year are as…
A: Journal Entries are recorded chronologically following the rules of debit and credit.
Q: The records of Hollywood Company reflected the following balances in the stockholders' equity…
A: Lets understand the basics. Preferred shares can be of many types out of which some of types are as…
Q: The outstanding share capital of KTI Corporation consists of 2,950 preferred shares and 7,000 common…
A: Non-cumulative preferred shares provide preferred shareholders the right to only the current year's…
Q: When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48…
A: Formulas:
Q: n stock, 80,100 shares at $1 par $ 80,100 Paid-in capital—excess of par 168,210 Retained…
A: Event Account title Debit Credit 1 Common stock a/c Dr. $1,100 Paid in capital in excess of…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock. It is also authorized to issue 750,000 shares of $6 par value common stock. It has issued 50,000 of the common shares and 1,000 of the cumulative preferred shares. The corporation has never declared a dividend and the preferred shares are one years in arrears. Aggregate Mining has the following transactions this year: Journalize these transactions. For the stock split, show the calculation for how many shares are outstanding after the split and the par value per share after the split
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: A. Issued 15,000 shares of 20 par common stock at 30, receiving cash. B. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. C. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. D. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. E. Paid the cash dividends declared in (D). F. Purchased 8,000 shares of treasury common stock at 33 per share. G. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. Recorded the payment of semiannual interest on the bonds issued in (C) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock, 80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend?
- Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,700 shares) $ 160,500 Common shares (outstanding, 37,000 shares) 635,000 Retained earnings 316,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $52,400.Case B: The preferred shares are cumulative; the total amount of dividends is $67,000.Case C: Same as case B, except the amount is $99,500Colgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $25; outstanding, 10,500 shares) Common shares (outstanding, 35,000 shares) Retained earnings $ 262,500 625,000 306,000 The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $52,000. Case B: The preferred shares are cumulative; the total amount of dividends is $65,000. Case C: Same as case B, except the amount is $98,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Answer is complete and correct. Preferred Sharee Common Shares Case A: Total S 10,500 S 41,500 Per share $ 1.00 $ 1.19 Case B:…Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $30; outstanding, 11,500 shares) Common shares (outstanding, 45,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $54,000. Case B: The preferred shares are cumulative; the total amount of dividends is $75,000. Case C: Same as case B, except the amount is $103,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 345,000 675,000 170,000 Case C: Total Per share Preferred Shares Common Shares