Cullumber Holding's accounting records show the following balances on December 31, 2020.12% Preferred stock-$100 par value, outstanding 19,000 sharesCommon stock-$1 par value, outstanding 45,000 sharesRetained earningsAssuming that the directors decide to declare total dividends in the amount of $500,000, determine how much each class of stockshould receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.Preferred(a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Roundanswers to O decimal places, e.g. $38,487.)$PreferredCommon$1,900,000(b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.)$45,000Common1,550,000(c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock.(Round the rate of participation to 4 decimal places, e.g.1.4278 %. Round answers to O decimal places, e.g. $38,487.)PreferredCommon

Cumulative preference shares are those shares that are paid a dividend every year. If any dividend…

Answered: Cullumber Holding's accounting records…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3%…
3M CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions) Accumulated Additional Other Total Common Paid-in Treasury Retained Comprehensive Stockholders' Stock Capital $ 4,295 Stock Equity $ 11,622 Earnings Income Balance, December 31, 2017 $ 9 $ (23,572) $ 38,699 (7,809) Net income 5,363 5,363 Stock issued 485 485 Stock-based compensation 302 302 Stock repurchased (4,870) (4,870) (3,193) (23) Cash dividends (3,193) Currency & pension adjustments (23) Other, net 162 162 Balance, December 31, 2018 $ 9 $ 5,082 $ (28,442) $ 40,869 $ (7,670) $ 9,848 Net income 4,582 4,582 Stock issued 547 547 Stock-based compensation 278 278 Stock repurchased (1,407) (1,407) Cash dividends (3,316) (3,316) Currency & pension adjustments (349) (349) Other, net (57) (57) Balance, December 31, 2019 $ 9 $ 5,907 $ (29,849) $ 42,135 $ (8,076) $ 10,126
Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc. authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on August 20, 2019? Select one: O a. Dr. Dividends Payable $500,000. Cr. Cash $500,000 O b. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 Oc. Dr. Dividends Payable $33,000. Cr. Cash $33,000 Od. No entry is necessary Oe. None of the above Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc, authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on July 31, 2019? Select one: Oa. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 O b. Dr. Dividends Payable $500,000. Cr. Cash Dividends $500,000 Oc. No entry is necessary Od. Dr.…
Presented below is information related to Alligator Corporation for 2019. 1. On March 1, Alligator Corporation issued 95,000 shares (authorized to issue 1,000,000 shares of $10 par value, Issued 100,000 shares till February, 2019) of common stock at $30 per share. 2. A dividend is declared on May 1, 2010, and paid on May 27, 2019, in equity held as an investment. The equity have a book value of $150,000 and a fair value of $190,000. 3. On June 1, Alligator Corporation replaced one of its’ used machines costed $200,000 with an accumulated depreciation of $110,000 with Labor company and received additional $27,000 cash. Fair value of Alligator’s machine at the time of exchange was $105,000. The cost, accumulated depreciation and fair value of Labor Company’s machine at the time of exchange were $125,000, $45,000 and $78,000 respectively. The exchange lacks commercial substance for both the parties. 4. On September 4, Alligator Corporation sold the 1,000 treasury shares that they had…
The shareholders' equity of Blue Corporation includes OMR 500,000 of OMR 1 par common stock and OMR 100,000 of 6% cumulative preferred stock. The board of directors of Blue declared cash dividends of OMR4,000, OMR3000, and OMR24,000 as cash dividends in each of 2017, 2018 and 2019 respectively. What is the amount of dividends that common stockholders will receive in 2019? Select one: a. OMR 11,000 b. OMR 7,000 c. OMR 6,000 d. OMR 13,000
The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows: Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000 Share premium, P1,500,000 Accumulated profits, P1,000,000 Treasury shares, 2,000 shares at cost, P360,000 On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225 On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share. The entry to record the sale on the books of Image should include: Group of answer choices Debit to Share premium at P6,250 Credit to Share premium at P50,000. Debit to accumulate profits at P6,250. Credit to Share premium at P27,500. The property was transferred to shareholders on January 31 when the prevailing fair value was at P800,000. What is the gain or loss to be recognized in the profit or losses as a result of the distribution of the property dividends on January 31? Group of answer choices…
Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: Мay 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized, 74,000 shares issued and outstanding Common stock, $6 par value, 600,000 shares authorized, 420,000 and 400,000 shares issued, respectively Additional paid-in capital Retained earnings $ 8,880,000 $ 8,880,000 2,400,000 14,140,000 11,794,000 ? 14,670,000 12,070,000 Less: Treasury common stock, at cost; 21,000 shares and 19,500 shares, respectively (1,932,000) (1,872,000) Total stockholders' equity $ $35,342,000 b. The only transaction affecting additional paid-in capital during the month of May was the sale of additional common stock. At what price per share were the additional shares sold? (Round your answer to 2 decimal places.) Price per share
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c. On July 12, 2022, the corporation declared and distributed a 4 %…
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 50 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018. Prepare the journal entry.
Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 105,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,000; 2022, $13,900; and 2023, $27,000.
The JHONG Corporation had the following balances in its Shareholders' Equity accounts as of December 31, 2019: Ordinary Share Capital, P10, par, 20,000 shares issued P200,000; Additional Paid In Capital P80,000; Retained Earnings P100,000; Treasury Shares at cost (2,000 shares) P24,000. The following shareholders' equity transactions took place in 2020 and 2021: 1. Dividends declared in 2020 were P22,000 and in 2021 were P 35,000. 2. Sold 1,000 Treasury shares at P15 per share in 2020 and 600 shares at P28 per share in 2021. 3. Issued an additional 1,500 new shares at P18 per share in 2021. 4. Net profit for 2020 was P80,000 and for 2021 was P98,000. How much is the balance of the Treasury Shares account as of December 31, 2021? *
Prepare the stockholders’ equity section of the balance sheet for Wiley Corporation on December 31, 2021. Assume that net income for the year was $1,100,000.

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