Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021 Common Stock (par $1; issued and outstanding, 490,000 shares) Preferred Stock, 8%; (par $10; issued and outstanding, 19,000 shares) Retained Earnings $ 490,000 190,000 966,000 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed:
Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021 Common Stock (par $1; issued and outstanding, 490,000 shares) Preferred Stock, 8%; (par $10; issued and outstanding, 19,000 shares) Retained Earnings $ 490,000 190,000 966,000 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
Transcribed Image Text:Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021
Common Stock (par $1; issued and outstanding, 490,000 shares)
Preferred Stock, 8%; (par $10; issued and outstanding, 19,000 shares)
Retained Earnings
On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred
stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed:
Case A: The preferred stock is noncumulative; the total amount of 2021 dividends would be $24,000.
Case B: The preferred stock is cumulative; the total amount of 2021 dividends would be $24,000. Dividends were not in arrears prior
to 2019.
Case C: Same as Case B, except the amount is $67,000.
Required:
1-a. Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were declared as
described in each case.
1-b. Compute the amount of 2021 dividends per share payable to each class of stockholders for each case
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Compute the amount of 2021 dividends per share payable to each class of stockholders for each case. (Round your answers
to 2 decimal places.)
Preferred
Common
Case A
1.26
S 1.92 $
$ 490,000
190,000
966,000
Case B
Case C
1.26
1.92 $
3.53
1.83
Transcribed Image Text:Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021
Common Stock (par $1; issued and outstanding, 490,000 shares)
Preferred Stock, 8%; (par $10; issued and outstanding, 19,000 shares)
Retained Earnings
On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred
stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed:
Case A: The preferred stock is noncumulative; the total amount of 2021 dividends would be $24,000.
Case B: The preferred stock is cumulative; the total amount of 2021 dividends would be $24,000. Dividends were not in arrears prior
to 2019.
Case C: Same as Case B, except the amount is $67,000.
Required:
1-a. Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were declared as
described in each case.
1-b. Compute the amount of 2021 dividends per share payable to each class of stockholders for each case.
Complete this question by entering your answers in the tabs below.
$ 490,000
190,000
966,000
Req 1A
Req 18
Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were
declared as described in each case.
Preferred
Common
Total
Case A
Case B
$ 24,000$ 24,000
942,000 942,000
$ 966,000 $ 966,000
Case C
$ 67,000
899,000
$ 966,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education