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
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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...
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Question
![2. Assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value
per share was $22. Complete the following comparative schedule for common shares only. (Enter any decreases to account balances
with a minus sign.)
Item
Assets
Liabilities
Shareholders' equity
Amount of Dollar Increase (Decrease)
Stock Dividend
Cash Dividend-Case C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b705b43-f340-437c-8aa2-d0e605827dee%2Fbc41f74c-8365-4ccb-899b-f39e526eab96%2Fhro9fy_processed.png&w=3840&q=75)
Transcribed Image Text:2. Assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value
per share was $22. Complete the following comparative schedule for common shares only. (Enter any decreases to account balances
with a minus sign.)
Item
Assets
Liabilities
Shareholders' equity
Amount of Dollar Increase (Decrease)
Stock Dividend
Cash Dividend-Case C
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b705b43-f340-437c-8aa2-d0e605827dee%2Fbc41f74c-8365-4ccb-899b-f39e526eab96%2Fixbnaz_processed.png&w=3840&q=75)
Transcribed Image Text: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
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