Cumulative Preferred Dividends Capital stock of Barr Company Includes: Common stock, $5 par, 630,000 shares outstanding $3,150,000 Preferred stock, 15% cumulative, $60 par, 12,000 shares outstanding 720,000 As of December 31, 2024, 2 years' dividends are in arrears on the preferred stock. During 2025, Barr plans to pay dividends that total $424,000. Required: 1. Determine the amount of dividends that will be paid to Barr's common and preferred stockholders in 2025, Total dividend to preferred stockholders Total dividend to common stockholders 2. If Barr paid $339,000 of dividends, determine how much each group of stockholders would receive. Total dividend to preferred stockholders Total dividend to common stockholders
Q: Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $137,700 paid to…
A: Any company with employees is subject to a payroll tax under the Federal Unemployment Tax Act, and…
Q: The controller of Manufacturing Co. has collected the following data on drilling machines: Month…
A: Variable Cost and Fixed Cost using the High-Low MethodThe high-low method is a method of separating…
Q: At December 31, 2023, Concord Corporation had the following shares outstanding: 6% cumulative…
A: Net income is the income after all the expenses. It is calculated after deducting all the expenses…
Q: The two employees of Silver Company receive various fringe benefits. Silver Company provides…
A: Amounts that are withheld from the employee paychecks are regarded as liabilities until they are…
Q: AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing…
A: Answer:- MACRS meaning:- In the United States, the depreciation method utilized for tax reasons is…
Q: Chapter 2 Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with…
A: There are mainly three methods to account for investment in subsidiary :1. Fair Value Method2.…
Q: Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing…
A: Manufacturing costs may vary based on factors such as production volume, production methods,…
Q: E3-20 (Algo) Reconcile the Total Cost of Work in Process [LO 3-4] Required: 1. Reconcile the total…
A: Process costing is one of the cost accounting method which is used for those businesses, under which…
Q: The master budget process usually begins with the: Multiple Choice O production budget. operating…
A: Master Budget helps in forming overall financial planning of the Business Entity.It contains the…
Q: Question Content Area Department G had 1,920 units 25% completed at the beginning of the period,…
A: Answer:- FIFO method of inventory meaning:- The first things acquired are presumed to be the first…
Q: Tamarisk Company purchased Machine #201 on May 1, 2020. The following information relating to…
A: Business entities are required to compute the depreciation expense so that in the balance the assets…
Q: Cost Flow Relationships The following information is available for the first year of operations of…
A: Cost of goods sold often abbreviated as COGS is an important element in the income statement in…
Q: Discuss the implications of fair value accounting in financial reporting and the challenges it poses…
A: Fair value accounting is an approach used in financial reporting that values assets, liabilities, or…
Q: Cullumber Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4…
A: Under periodic inventory system, updates to the inventory records are made on a periodic basis.Under…
Q: Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small.…
A: Contribution margin statement is the one which reports the earnings of the entity after the variable…
Q: Identify the source document for NDX Company in each of the following accounting processes.…
A: It is a document in which transaction is recorded for the first time. It is the basis for…
Q: QUESTION 3 Always-online (Pty) Ltd took out a policy on the life of James. Always-online (Pty) Ltd…
A: Corporate Ownership of Life Insurance (COLI) refers to a practice where a corporation purchases life…
Q: Blue Spruce Cafeteria operates cafeteria food services in public buildings in the Midwest. Blue…
A: Lets understand the basics.Degree of operaring leverage shows how much net income is changed as…
Q: Dandan Ltd, a commercial port operator, is uncertain how to account for the following entries in its…
A: International Financial Reporting Standards is IFRS. It is a set of accounting standards and…
Q: The following are excerpts from Hamburg Company’s Statement of Cash Flows and other financial…
A: AnswerFree cash flow is the amount of cash flow available after paying the…
Q: Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products…
A: Estimated cost of activity = Sum of (Cost categories *% allocation to activity)Activity rate is…
Q: Determine which of the following statements are correct regarding the difference between physical…
A: The physical flow, the physical movement of goods and services. Physical flow means flows of…
Q: The trial balance columns of the worksheet for Sarasota Roofing at March 31, 2022, are as follows…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: Consider making an investment of $10,000 each year. If the first $10,000 investment is made at the…
A: Future value refers to an amount of a current asset at some future date effected by interest rates,…
Q: Greenland Company applies manufacturing overhead to jobs using a predetermined overhead rate of 125%…
A: Total manufacturing costs :— It is the sum of direct materials costs, direct labor costs and…
Q: Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes…
A: Net Present value is present value of cash flow minus initial investment.
Q: The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The…
A: A bank reconciliation statement is a summary of cash balance as per Bank and as per Books that…
Q: Record the issue of the bonds on July 31,2024. (List debit entry before credit entry. Record the…
A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government &…
Q: Trevor Mills produces agricultural feed at its only plant. Materials are added at the beginning of…
A: Equivalent units refer to a concept used in managerial accounting to measure the output of a…
Q: how did you find the total unit cost 1. The following balances were taken from the accounts of…
A: COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Number of Units Sold…
Q: Haffner Corporation uses the weighted average method in its process costing system. Data concerning…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: The following information was drawn from the accounting records of Jones Company. Net sales Net…
A: Answer:- Formula:- Asset turnover ratio = Net sales / Average total assets
Q: The following information applies to the questions displayed below.] Baron Company prepared the…
A: Income Statement: It is a part of the financial statement of a company in which revenue and expenses…
Q: Date Account Titles and Explanation April 30 April 30 (To record collection of note receivable and…
A: A statement which is prepared to help the differences between the bank balance and company's cash…
Q: Byford Inc. produces a product that passes through two processes. During November, equivalent units…
A: The weighted average method, also known as the weighted average cost method or the average cost…
Q: Best Windows is a small company that installs windows. Its cost structure is as follows: Selling…
A: Desired Revenue -Desired Net Income is a costing method where using this technique one can calculate…
Q: On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions…
A: Financial Statement -Financial Statements includes Income Statement, Statement of Retained Earnings…
Q: Mills Corporation acquired as an investment $260 million of 5% bonds, dated July 1, on July 1, 2024.…
A: The company can make investments in bonds. The company invests to increase earnings. The company…
Q: Lendrum Servicing's four employees are paid every two weeks. Atkins runs the office and the…
A: Net pay refers to an amount that is to the employees of the company after deducting all the expenses…
Q: PROBLEM 14-18 Net Present Value Analysis LO14-2 Oakmont Company has an opportunity to manufacture…
A: Net present value is capital budgeting concept. It is calculated by deducting present value of cash…
Q: Question #2 Use the information below and complete the following: • Absorption costing income…
A: The income statement is one of the important financial statements of the business. It can be…
Q: Limonade produced 10,000 cases of powdered drink mix and sold 9,000 cases in April. The sales price…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: Kitty Company began operations in the current year and acquired short-term debt investments in…
A: Debt investment meaning:- The acquisition of a significant amount of debt with the intention of…
Q: In its first year of operations a company produced and sold 70,000 units of Product A at a selling…
A: Activity Based CostingActivity-depending Costing (ABC) is a costing approach that firms use to…
Q: Using the data in the tables below, compute Net Cash Flow Activities for Auburn Tangerine, Inc. for…
A: The amount of cash flows (including both inflow as well as outflow) from continuous, regular…
Q: Green Grow Incorporated (GGI) manufactures lawn fertilizer. Because of the product’s very high…
A: Total relevant cost of filling the special sales order: The relevant costs include the variable…
Q: The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: (b) Sharon has proposed a plan to get the partnership "out of the red" and improve its…
A: Break-even point refers to the point at which company is earning no profits or bearing no losses…
Q: Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor…
A: Labor cost variance also referred to as labor spending variance is the difference between the…
Q: Determine the missing amounts. $ Total Manufacturing Costs $332,800 $ $347,200 Work in Process (Jan.…
A: Cost of Goods Manufactured (COGM) refers to the total cost incurred by a company to produce or…
Please do not give solution in image format thanku
Step by step
Solved in 4 steps
- Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.
- Stock Dividend The balance sheet of Cohen Enterprises includes the following stockholders equity section: Required: On April 15, 2019, when its stock was selling for $18 per share, Cohen Enterprises issued a small stock dividend. After making the journal entry to recognize the stock dividend, Cohens total capital stock increased by $270,000. In percentage terms, what was the size of the stock dividend? Ignoring the small stock dividend discussed in Requirement 1, assume that on June 1, 2019, when its stock was selling for $22 per share, Cohen issued a large stock dividend. After making the journal entry to recognize the stock dividend, Cohens retained earnings decreased by $75,000. In percentage terms, what was the size of the stock dividend?On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholders