Example Exercise 13-1 Dividends per Share Sandpiper Company has 20,000 shares of cumulative preferred 1% stock of $100 par and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 $10,000 Year 2 45,000 Year 3 80,000 Determine the dividends per share for preferred and common stock for each year. Follow My Example 13-1

Example Exercise 13-1 Dividends per Share Sandpiper Company has 20,000 shares of cumulative preferred 1% stock of $100 par and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 $10,000 Year 2 45,000 Year 3 80,000 Determine the dividends per share for preferred and common stock for each year. Follow My Example 13-1

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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Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Y3 20Y2 Net income $768,750 $627,750 Preferred dividends $117,000 $117,000 Average number of common shares outstanding 55,000 shares 45,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $fill in the blank 1 per share 20Y2 $fill in the blank 2 per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,761,000 $2,532,500 Preferred dividends $60,000 $60,000 Average number of common shares outstanding 90,000 shares 115,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable? fill in the blank
Description Year 1 Year 2 Year 3 Total Distribution $12,000 $18,000 $90,000 Preferred Stock $12,000 $18,000 $30,000 Common Stock - - $30,000 Preferred dividends in Arrears - - $30,000* Dividends Per share Preferred Stock $0.6 $0.9 $3 Common Stock - - $0.3 How were the preferred and common stock calculated?
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Earnings Per Share Calculati ons Informatlon Provlded: Common Shares Balance at the beginning of the ye ar On July 1, the company sold an additional 5,000,000 shares 8,000,000 shares Each share sold for $3.00 and had a par value of $ 0.10 Preferrred Shares Beginning of the Year End of the Year 50,000 150,000 Dividends pald to Preferred Shareholders Dividends pald to Common Sharehol ders 650, 000 1,000, 000 Ex ce pt from Income Statement Income from Continuing Operations 22,000, 000 Income from Discontinued Ope rations (aftertaxImpact) 2,100, 000 Net Income 24,100, 000 Requlred: Based on the Information provided above: 1 Prepare the Joumal entry to record the July 1 sale of shares 2 Calculate the welghted average common shares outstandi ng 3 Calculate e arnings pershare (as required). Note: Show your detal led calaulatlons.
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Dividends per share Windborn Company has 10,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: 20Y1 20Y2 20Y3 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock Common Stock (dividends per share) (dividends per share) 0. X 20Y1 20Y2 20Y3 Feedback $7,500 4,000 15,000 Check My Work 0.50 0.40 0.60 0.00 0.18 m
Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 4 total cash dividends York's outstanding stock consists of 90,000 shares of cumulative 6.5% preferred stock with a $5 par value and also 100,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: Note: Round your "Dividend per Preferred Share" answer to 3 decimal places. Annual Preferred Dividend: Year 1 Year 2 Year 3 Year 4 Totals Par Value per Preferred Share Total Cash Dividend Paid $ $ 18,100 27,200 255,000 $ 18,100 27,200 255,000 405,000 405,000 705,300 Dividend Rate Paid to Preferred Dividend per Preferred Share Paid to Common Number of Preferred Shares Dividends in Arrears at year-endi Preferred Dividend
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