E Sport Fitness has 750,000 shares authorized in the Charter, and they have 200,000 shares Issued and 20,000 shares in Treasury Stock. When the Company declares a $400,000 cash dividend, what is the amount of the Dividend that each shareholder will receive?

E Sport Fitness has 750,000 shares authorized in the Charter, and they have 200,000 shares Issued and 20,000 shares in Treasury Stock. When the Company declares a $400,000 cash dividend, what is the amount of the Dividend that each shareholder will receive?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: The stockholders' equity represents the issued capital and retained earnings of the business.…

Q: A corporation declares a 15% stock distribution. The shareholders have a choice between the stock or…

A: It is assumed that there are only two shareholders in the company viz. A and B. Then, Total share…

Q: Provide the journal entry that would be necessary to record the transaction.

A: A journal entry is the record of economic or non-economic transactions in the business containing…

Q: Can you also answer this? The owners are desirous of comparing serval financial transactions and…

A: In the context of the given question, we are required to prepare the journal entries and the…

Q: The board of directors of mountain hotels has declared a dividend of $1,900,000. The company has…

A: Solution:- Dividend is a part of amount of earnings distributed to shareholders. The preference…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Common stock appears to be a security that represents ownership in a company. Common investors elect…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Common stock appears to be a security that represents ownership in a company. Common investors elect…

Q: Lighthouse Inc., a software development firm, paid a total of $75,000 in dividends in fiscal year…

A: Annual preferred dividend = 3,000 x 6 = 18,000

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000…

A: 1. Stock Dividend - Stock Dividend is the type of dividend issue by the organization other than…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: The owners are desirous of comparing serval financial transactions and possible outcomes to assist…

A: Equity shares and preference shares are two types of shares issued by a company. Company pays…

Q: Your corporation currently has 200,000 shares of stock outstanding that sells for $50.00 per share.…

A: Number of shares before split = 200,000 Price per share before split = $ 50 Split ratio = five-…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Journal entries are a primary record of every business transactions.Treasury stock is also known as…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: The stockholders' equity represents the issued capital and retained earnings of the business. The…

Q: A company's board of directors votes to declare a cash dividend of $.80 per share of common stock.…

A: Dividends are payments made to shareholders from a company's earnings or profits. It is a payment…

Q: ST Corporation has a total shareholders' equity of P1,000,000, including retained earnings of…

A: Given, Balance in retained earnings = 175,000 Cash balance = 350,000

Q: A company's board of directors votes to declare a cash dividend of $.80 per share of common stock.…

A: Simply described, it is a payment provided to shareholders in appreciation for their commitment in…

Q: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of…

A: The stockholders' equity has normal credit balance. The dividend is declared to the shareholders…

Q: Nirvana have net income of $1,000,000. They pay preferred dividends of 100,000 during the year and…

A: EPS= 94.73 Explanation: EPS= (Net income- Dividents to preferred shares)/ average outstanding shares…

Q: Bay Meadows Corporation designs and produces a line of golf equipment and golf apparel. Bay Meadows…

A: The treasury stock decreases the number of outstanding shares. The dividend is not declared for the…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: No. of shares outstanding on June 1 = Beginning no. of shares outstanding + Additional shares issued…

Q: Calculate the amount of different categories of share capital and prepare the abstract of SFOP by…

A: Abstract of SFOP by showing only Share capital for the year 2021 Particulars Details Amount…

Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…

A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…

Q: V Sport Fitness has 750,000 shares authorized in the Charter, and they have 200,000 shares Issued…

A: No. of shares issued and outstanding = No. of shares issued - shares in Treasury Stock = 200,000…

Q: On April 15, 2024, Novak Ltd. declared a 50¢ per share cash dividend, payable on May 31 to…

A: The cash dividend is declared and paid to outstanding stock as on record date. The outstanding…

Q: The company raises $5 million in equity capital by selling new shares of stock in the company to…

A: Accounting equation is Total Assets = Total liabilities + equity

Q: The owners are desirous of comparing several financial transactions and possible outcomes to assist…

A: Common stock and Preferred stock shares are two types of shares issued by the company. Company has…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: 1. Common Stock - Common Stock is the shares issued by the company to raise capital for the purpose…

Q: On June 8, 2021, the board of directors of Peterson Manufacturing voted to distribute $3,140,000 to…

A: Dividend is the amount of return received by the shareholders of the entity. It is paid only after…

Q: What is the new value of the company? What is the new stock price?

A: Market value of common stock : 18*$26=$468Millions Proceeds in to the company by share warrants =…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Power Drive Corporation, a company specializing in golf equipment and apparel, meticulously manages…

Q: Willie Inc.'s shareholder's equity equals one fifth of the co Inc.'s liabilities are $ 700000, how…

A: The accounting equation states that a company's assets are equal to its liabilities plus…

Q: 2. The owners are desirous of comparing serval financial transactions and possible outcomes to…

A: Common stock shares and preferred shares are two types of shares issued by a company. Company…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: Solution: Power drive Corporation Statement of Stockholder's Equity For the year ended…

Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…

A: The shareholders' equity includes the issued capital and retained earnings of the business. The…

Question

E Sport Fitness has 750,000 shares authorized in the Charter, and they have 200,000 shares Issued and 20,000 shares in Treasury Stock.

When the Company declares a $400,000 cash dividend, what is the amount of the Dividend that each shareholder will receive?

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021. March 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share. May 10 Purchases 6,000 shares of treasury stock for $65 per share. June 1 Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 3,000 shares of treasury stock purchased on May 10 for $70 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,500,000; and Retained Earnings, $3,000,000. Net income for the year ended December 31, 2021, is $700,000. Required: Prepare the…
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 Issues 64,000 additional shares of $1 par value common stock for $61 per share. May 10 Purchases 5,900 shares of treasury stock for $64 per share. June 1 Declares a cash dividend of $1.95 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,950 shares of treasury stock purchased on May 10 for $69 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $5,400,000; and Retained Earnings, $2,900,000. Net income for the year ended December 31, 2024, is $690,000.
B. Z Corporation has 1,000 shares of K20 par value common stock outstanding. The company is considering a 4 for 1 stock split. How will this affect the shareholders' equity accounts?
A shareholder owns 20,000 shares costing P 1,000,000. Subsequently, the shareholders receive P 4,000 shares in lieu of cash dividend of P 120 per share. The Market value is P 150.What is the amount of dividend income? a. Zerob. 3,000,000c. 2,400,000d. 600,000
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 Issues 45,000 additional shares of $1 par value common stock for $42 per share. Purchases 4,000 shares of treasury stock for $45 per share. Declares a cash dividend of $1.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. July 1 October 21 Resells 2,000 shares of treasury stock purchased on May 10 for $50 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $3,500,000; and Retained Earnings, $1,000,000. Net income for the year ended December 31, 2024, is $500,000. Required: Prepare the…
A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice that share is split 2-for-1. What amount of gain on sale will be recognized if 6,000 shares will be sold for P228 per share?
Please help me. Thankyou.
Malit Corporation has a total shareholders' equity of P1,000,000, including retained earnings of P190,000. The cash balance is P350,000. The maximum cash dividend the corporation can declare and pay is
Verizon is scheduled to payout a dividends. The details are below. If I own 100 shares, how much will I receive in dividends. 01/07/2021 CASH $0.627
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share. Purchases 4,800 shares of treasury stock for $53 per share. Declares a cash dividend of $1.40 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.). May 10 June 1 July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,400 shares of treasury stock purchased on May 10 for $58 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, 2024, is $580,000. Required: Prepare the…