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Chicago Company reported the following information at the end of the current year: Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ($10 par value; 9,100 shares outstanding) Retained earnings $460,000 91,000 286,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $36,500. Case B: The preferred stock is cumulative; the total amount of all dividends is $40,950. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Chicago Company issued a 30 percent common stock dividend on the outstanding shares when the market value per share was $24. Fill in the table below to show how this stock dividend would compare to Case C. (Leave no cells blank - be certain to enter "0" wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Item Assets Liabilities Cash Dividend-Case C Stock Dividend Stockholders' equity < Required 1 Required 2 >

Chicago Company reported the following information at the end of the current year: Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ($10 par value; 9,100 shares outstanding) Retained earnings $460,000 91,000 286,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $36,500. Case B: The preferred stock is cumulative; the total amount of all dividends is $40,950. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Chicago Company issued a 30 percent common stock dividend on the outstanding shares when the market value per share was $24. Fill in the table below to show how this stock dividend would compare to Case C. (Leave no cells blank - be certain to enter "0" wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Item Assets Liabilities Cash Dividend-Case C Stock Dividend Stockholders' equity < Required 1 Required 2 >

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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Chicago Company reported the following information at the end of the current year: Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ($10 par value; 9,100 shares outstanding) Retained earnings $460,000 91,000 286,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $36,500. Case B: The preferred stock is cumulative; the total amount of all dividends is $40,950. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Chicago Company issued a 30 percent common stock dividend on the outstanding shares when the market value per share was $24. Fill in the table below to show how this stock dividend would compare to Case C. (Leave no cells blank - be certain to enter "0" wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Item Assets Liabilities Cash Dividend-Case C Stock Dividend Stockholders' equity < Required 1 Required 2 >
Transcribed Image Text:Chicago Company reported the following information at the end of the current year: Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ($10 par value; 9,100 shares outstanding) Retained earnings $460,000 91,000 286,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $36,500. Case B: The preferred stock is cumulative; the total amount of all dividends is $40,950. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Chicago Company issued a 30 percent common stock dividend on the outstanding shares when the market value per share was $24. Fill in the table below to show how this stock dividend would compare to Case C. (Leave no cells blank - be certain to enter "0" wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Item Assets Liabilities Cash Dividend-Case C Stock Dividend Stockholders' equity < Required 1 Required 2 >
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