Cariyon Company listed the following items in its December 31, 2015, financial statements: Investment in Man Company bonds $25,000 Dividends payable: proferred 4,000 Dividends payable: common 40,000 Preferred stock, 8%, $100 par 100,000 Common stock, $10 par 400,000 Addtional paid-in capital on preferred stock 20,000 Adational paid-in capital on common stock 210,000 Retained earnings 270,000 During 2016, the following transactions occurred: Feb. 2 Paid the semiannual dividends declared on December 15, 2015. 5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. Mar. The bonds (which have a book value of $25,000) have a current market value of $31,000. Apr. 5 Paid the property dividend. July Declared a 54 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17. Aug 17 Paid the cash dividends. Oct 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share. Dec. 3 Issued the stock dividend. 28 Declared a 54 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017.
Cariyon Company listed the following items in its December 31, 2015, financial statements: Investment in Man Company bonds $25,000 Dividends payable: proferred 4,000 Dividends payable: common 40,000 Preferred stock, 8%, $100 par 100,000 Common stock, $10 par 400,000 Addtional paid-in capital on preferred stock 20,000 Adational paid-in capital on common stock 210,000 Retained earnings 270,000 During 2016, the following transactions occurred: Feb. 2 Paid the semiannual dividends declared on December 15, 2015. 5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. Mar. The bonds (which have a book value of $25,000) have a current market value of $31,000. Apr. 5 Paid the property dividend. July Declared a 54 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17. Aug 17 Paid the cash dividends. Oct 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share. Dec. 3 Issued the stock dividend. 28 Declared a 54 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Carlyon Company listed the following items in its December 31, 2015, financial statements:
Investment in Man Company bonds
$25,000
Dividends payable: preferred
4,000
Dividends payable: common
40,000
Preferred stock, 8%, $100 par
100,000
Common stock, $10 par
400,000
Additional paid-in capital on preferred stock
20,000
Additional paid-in capital on common stock
210,000
Retained earnings
270,000
During 2016, the following transactions occurred:
Feb.
Paid the semiannual dividends declared on December 15, 2015.
Mar.
5
Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity.
The bonds (which have a book value of $25,000) have a current market value of $31,000.
Ar.
Paid the property dividend.
July
6
Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on
common stock, to be paid on August 17.
Aug.
17
Paid the cash dividends.
Oct
15
Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
Dec.
Issued the stock dividend.
28
Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on
February 15, 2017.
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