Cash Dividends Sanders Corporation has the following shares outstanding: 9,000 shares of $50 par value, 3% preferred stock and 60,000 shares of $1 par value common stock. The company has $246,000 of retained earnings. At year-end, the company declares its regular $1.50 per share cash dividend on the preferred stock and a $1.65 per share cash dividend on the common stock. Three weeks later, the company pays the dividends. a. Determine the financial statement effect of the declaration of the cash dividends. b. Determine the financial statement effect of the payment of the cash dividends Balance Sheet Income Statement Assets = Liabilities + Equity Revenues - Expenses = Net Income a. 0 Answer Answer 0 0 0 b. Answer Answer 0 0 0 0
Cash Dividends Sanders Corporation has the following shares outstanding: 9,000 shares of $50 par value, 3% preferred stock and 60,000 shares of $1 par value common stock. The company has $246,000 of retained earnings. At year-end, the company declares its regular $1.50 per share cash dividend on the preferred stock and a $1.65 per share cash dividend on the common stock. Three weeks later, the company pays the dividends. a. Determine the financial statement effect of the declaration of the cash dividends. b. Determine the financial statement effect of the payment of the cash dividends Balance Sheet Income Statement Assets = Liabilities + Equity Revenues - Expenses = Net Income a. 0 Answer Answer 0 0 0 b. Answer Answer 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cash Dividends
Sanders Corporation has the following shares outstanding: 9,000 shares of $50 par value, 3%
stock
At year-end, the company declares its regular $1.50 per share cash dividend on the preferred stock and a
$1.65 per share cash dividend on the common stock. Three weeks later, the company pays the dividends.
a. Determine the financial statement effect of the declaration of the cash dividends.
b. Determine the financial statement effect of the payment of the cash dividends
| Balance Sheet | Income Statement | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | = | Liabilities | + | Equity | Revenues | - | Expenses | = | Net Income | ||||
| a. | 0 |
Answer
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0 |
0 |
0 |
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| b. | Answer
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Answer
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0 |
0 |
0 |
0 |
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