Halverstein Company's outstanding stock consists of 11,900 shares of cumulative 5% preferred stockwith a $10 par value and 5,100 shares of common stock with a $1 par value. During the first three yearsof operation, the corporation declared and paid the following total cash dividends.Dividend DeclaredYear 1 $Year 2 $Year 3 $010,20043,000The amount of dividends paid to preferred and common shareholders in Year 2 is:

INTRODUCTION: A dividend is a portion of a company's profits and retained earnings that it…

Answered: Halverstein Company's outstanding stock…

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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Selected stock transactionsThe following selected accounts appear in the ledger of ParksConstruction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactionsaffecting the stockholders' equity. They are summarized as follows: a. Issued 400,000 shares of common stock at $11, receiving cash.b. Issued 5,000 shares of preferred 2% stock at $90.c. Purchased 150,000 shares of treasury common for $10 per share. d. Sold 80,000 shares of treasury common for $13 per share.e. Sold 20,000 shares of treasury common for $9 per share.f. Declared cash dividends of $1.50 per share on preferred stockand $0.06 per share on common stock.g. Paid the cash dividends. InstructionsJournalize the entries to record the transactions. Identify each entry byletter
The following Information pertains to JAE Corporation at January 1, Year 1. Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings JAE Corporation completed the following transactions during Year 1: 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for $26 per share. Required Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Complete this question by entering your answers in the tabs below. Req D $20,000 15,000 82,000 Prepare the stockholders' equity section of the balance sheet reflecting these transactions. (Amounts be indicated with minus sign.) Stockholders' equity Common stock Total paid-in capital Retained earnings Total stockholders' equity
The outstanding share capital of KTI Corporation consists of 2,950 preferred shares and 7,000 common shayes for which $280,000 was received. The preferred shares carry a dividend of $7 per share and have $100 stated value. Instructions: Assuming that the company has retained earnings of $95,000 that is to be entirely paid out in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following conditions. a. The preferred shares are cumulative and non-participating. b. The preferred shares are cumulative and participating. Do not round intermediate calculations but round answer to nearest dollar.
The stockholders' equity of Blue Corporation includes $300,000 of S1 par common stock and $500,000 par of 5% cumulative preferred stock. In its first year of operations, cash dividends of $20,000 were declared. In its second year of operations, cash dividends of $15,000 were declared. Now in its third year, cash dividends of $100,000 are declared. How much of the $100,000 year three dividends will preferred stockholders receive? Multiple Choice $25,000 $15,000 $40,000 $35,000
A company with 100,000 authorized shares of $6 par common stock issued 35,000 shares at $12. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
The outstanding capital stock of Oriole Corporation consists of 1,900 shares of $100 par value, 8% preferred, and 4,700 shares of $50 par value common. Assuming that the company has retained earnings of $89,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) EA Preferred Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. 38,487.) Preferred LA Common Common
On June 1, 2016, Pat Corporation declared a bonus issue entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the fair value was P10 per share and the par value was P5 per share. On this date, Pat had 600,000 of ordinary shares outstanding. What entry should Pat make to record this transaction? A. Retained Earnings 6,000,000 Share Dividends Distributable 3,000,000 Share Premium 3,000,000B. Share Dividends Payable 6,000,000 Share Dividends Distributable 3,000,000 Share Premium 3,000,000C. Retained Earnings 3,000,000 Share Dividends Distributable 3,000,000D. No entry
Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, Year 1: 6.5% cumulative preferred stock, $100 par value; authorized, 18,000 shares; issued and outstanding, 9,000 shares Common stock, $4 par value; authorized, 340,000 shares; issued and outstanding, 204,000 shares Additional paid-in capital: preferred stock Additional paid-in capital: common stock Retained earnings Dividends have been declared and paid for Year 1. The average issue price per share of Grant's preferred stock was: Multiple Choice O $52.50. $100.00. $105.00. $ 900,000 $ 816,000 $ 45,000 $ 1,500,000 $ 920,000
The Board of Directors of ABC Corporation declared a dividend on March 6, 2XX1, to shareholders of record on April 7, 2XX1, P18 per share, payable on May 1, 2XX1. 100,000 ordinary shares were outstanding from March 6 to April 28 and 110,000 ordinary shares outstanding from April 29 to May 1. Compute for the total cash dividends distributed to shareholders.
Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 5% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,700 Year 2 $ 6,700 Year 3 $ 35,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is: Multiple Choice $8,500 preferred; $36,400 common. $15,200 preferred; $29,700 common. $25,500 preferred; $19,400 common. $19,700 preferred; $25,200 common. $17,000 preferred; $27,900 common.
Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,700 Year 2 $ 9,400 Year 3 $ 40,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
C

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