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)$250,000Common shares (outstanding. 30,000 shares)600,000Retained earnings281,000The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declaredduring the previous two years. Three independent cases are assumed:Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,000.Case B: The preferred shares are cumulative; the total amount of dividends is $60,000.Case C: Same as case B, except the amount is $96,000.Required:1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. Showcomputations.2. Assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value pershare was $24. Complete the following comparative schedule for common shares only, including explanation of the differences.ItemAssetsLiabilitiesShareholders' equityAmount of Dollar Increase (Decrease)Cash Dividend-Case C Stock Dividend$

Stock Dividend is the issuance of Shares by the company in the form of dividend to the existing…

Answered: Calgate Company had the following…

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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Ivanhoe Corporation has 10.50 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 83 cents per share cash dividend to stockholders of record as of June 14, payable June 30. (a) Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation ◄► A n Debit Credit
Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $18 par value, 12,700 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,300 shares of common stock for cash at $36 per share. b. Sold 2,300 shares of common stock for cash at $41 per share. c. At year-end, the company reported net income of $7,200. No dividends were declared. E11-5 Part 2 2. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated by a minus sign. Stockholders' equity Contributed capital: TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Total contributed capital Total stockholders' equity $ 0 0
Coronado Corporation began its latest fiscal year on January 1, 2021, with 520,000 common shares outstanding. During the year, the following events occurred: On February 1, Coronado sold 15,400 additional common shares. The company declared and issued a 25% stock dividend on March 1. On June 1, Coronado repurchased and cancelled 3,850 common shares. ● ● ● . . An additional 4,700 common shares were issued on July 1. On September 1, Coronado declared and issued a three-for-one stock split. On December 1, Coronado issued an additional 14,400 shares. Following the fiscal year, Coronado declared and issued a two-for-one stock split on February 1, 2022. The company issued its 2021 financial statements on April 30, 2022. Calculate the weighted average number of common shares that Coronado should use for calculating its EPS numbers for 2021. Weighted average number of common shares:
The shareholders’ equity of Tru Corporation includes $680,000 of $1 par common stock and $1,280,000 par value of 7% cumulative preferred stock. The company paid $68,000 cash dividends in Year 1 and another $68,000 cash dividends in Year 2. The board of directors of Tru declared cash dividends of $158,000 during Year 3. What is the amount of the cash dividends that will be paid to the common shareholders in Year 3? dividends to common shar
At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 217,600 Preferred shares, 8,000 shares outstanding, no-par Common shares, 181,900 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 472,940 111,500 557,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,700 common shares bought and retired at $4 per share 16 March 4,700 preferred shares bought and retired at $30.50 per share 20 May 10,000 common shares bought and retired at $1 per share 25 May 2,400 preferred shares bought and retired at $16.70 per share 30 May 11,500 common shares issued at $8.70 per share 15 Nov. 5,500 common shares bought and retired at $22 per share Required: 1. Give journal entries to record each share retirement transaction. (Round intermediate calculations to 2 decimal places and Round your final answers to the nearest whole dollar. If no entry is required for a…
At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 228,750 Preferred shares, 7,500 shares outstanding, no-par Common shares, 181,400 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 477,082 111,100 555,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,400 common shares bought and retired at $4 per share 16 March 4,300 preferred shares bought and retired at $32.90 per share 20 May 9,500 common shares bought and retired at $1 per share 25 May 1,900 preferred shares bought and retired at $18.30 per share 30 May 11,000 common shares issued at $10.30 per share 15 Nov. 5,100 common shares bought and retired at $30 per share
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
Nowell Incorporated had the following stock issued and outstanding at January 1, Year 2: 1. 106,000 shares of no-par common stock. 2.36,000 shares of $50 par, 5 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1.) On March 8, Year 2, Nowell declared a $208,000 cash dividend to be paid March 31 to shareholders of record on March 20. Required What amount of dividends will be paid to the preferred shareholders versus the common shareholders? Total dividend declared Preferred arrearage Current preferred dividend Available for common Distributed to common Total Distributed to Shareholders Preferred Common
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 138,000 shares of $7 par common stock. 2. 9,500 shares of $90 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. b. Prepare general journal entries to record the declaration and payment of the cash dividends. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. Preferred stock Common stock Total dividend Required A Required B >
During its first year of operations, Bramble Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 81,500 shares for cash at $6 per share. Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $36,200 for services rendered in helping the company to incorporate. July 1 Issued 33,300 shares for cash at $8 per share. Sept. 1 Issued 62,400 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement.)
A. Overall, how much did shareholders' equity increase or decrease as a result of the two treasury share transactions? B. Overall, shareholders' equity ______ by $ ______ million.

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