Hoopla Ltd. is a Canada Business Corporation and has 19,220 Class A voting (common) shares and 6,460 Class B non voting(preferred shares). Class A shares are non cumulative and Class B shares are cumulative. The Class B shares have a fixed return of$2/share and the dividends to Class A are unlimited. In Year 1 Hoopla paid no dividends. In Year 2, it paid 80 cents a share to Class Aand the stated rated to Class B.Required 1: What is the amount of dividends paid out to Class A shareholders in year 2? $Required 2:What is the amount of dividends paid out to Class B shareholders in year 2? $Required 3: What is the total amount of dividends paid out to shareholders in year 2? $Required 4: What is the amount of dividends paid out to Class A shareholders in year 1? $Required 5: What is the amount of dividends paid out to Class B shareholders in year 1? $

The objective of the question is to calculate the amount of dividends paid out to Class A and Class…

Answered: Hoopla Ltd. is a Canada Business…

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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Hoopla Ltd. is a Canada Business Corporation and has 16,220 Class A voting (common) shares and 5,710 Class B non voting (preferred shares). Class A shares are non cumulative and Class B shares are cumulative. The Class B shares have a fixed return of $2/share and the dividends to Class A are unlimited. In Year 1 Hoopla paid no dividends. In Year 2, it paid 80 cents a share to Class A and the stated rated to Class B. Required 1: What is the amount of dividends paid out to Class A shareholders in year 2? Required 2:What is the amount of dividends paid out to Class B shareholders in year 2? Required 3: What is the total amount of dividends paid out to shareholders in year 2? Required 4: What is the amount of dividends paid out to Class A shareholders in year 1? Required 5: What is the amount of dividends paid out to Class B shareholders in year 1?
Brilliant Ltd is a private limited by shares incorporated under Cap. 622. It has firstly issued 5,000 ordinary shares, and subsequently 10,000 8% redeemable preference shares. Both types of shares are issued at $2 each. All monies have been collected for the issued shares.The articles of association of Brilliant states that the preference dividend of the preference shares is to be paid out of yearly profits, and that the holders of the shares only have the right to vote at a meeting of the company when their dividend has not been paid or their rights are being varied.Brilliant has made substantial profits in the initial years and accumulated handsome profits on reserve. In recent years it applied some profits for expansion, but its business deteriorated after expansion. Though it still has positive profits reserve, it has not generated profits for a few years until the last year. In the past three years it did not declare a dividend. The preference shareholders are unhappy about not…
Riverbed Corporation is a regional company which is an SEC registrant. The corporation's securities are thinly traded on NASDAQ. Riverbed Corp. has issued 17,000 units. Each unit consists of a $850 par, 12% subordinated debenture and 17 shares of $9 par common stock. The units were sold to outside investors for cash at $1,496 per unit. Prior to this sale, the 2-week ask price of common stock was $68 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Riverbed's transaction, under the following conditions. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) Employing the incremental method. (2) Employing the proportional method, assuming the recent price quote on…
During your examination of the 20x3 financial statements of Goyo Company, the following data were discovered. Give any correcting and adjusting entries called for by the information given. Disregard any effects on income tax. 10. In March 20x3, the company received a 25% ordinary share dividend on 100 shares of Apple, Inc., ordinary shares acquired in 20x1 at P300. The shares received as share dividends were sold for cash in April 20x3, at P340 each, and a revenue account credited for the full proceeds. 11. The Advertising and Promotions account included an amount of P180,000, representing the cost of printing sales catalogs for a special promotional campaign in December 20x4. 12. A check for P12,000 representing the repayment of an employee advance was received on November 30, 20x3, but was not recorded until December 2, 20x3.
Rahul
Un Deux Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and 300,000 shares of P30 par value ordinary shares. During the year, the company declared and paid a total cash dividend of P900,000. The corporation did not declare and pay any dividends last year. Required: For each of the following independent cases, compute the total dividends to be received by each class of share. 1. The preference share is non-cumulative and non-participating 2. The preference share is cumulative and non-participating 3. The preference share is non-cumulative and participating 4. The preference share is cumulative and participating
Matthew Corporation is authorized to issue 1,500,000 shares of its P10 share, par Ordinary Shares. It has issued half of the stock for P16 recorded net income of P2,000,000, declared but has not yet paid cash dividend of P150,000 and has split its stock 2:1 all during the first year of per operations. How much is the total stockholders' equity at the end of its first year operations?
The capital of Fever Grass Ltd. consists of fully paid up ordinary and preference shares. The governing regulations of Fever Grass Ltd. provide as follows: "17(a) Preference shareholders shall receive a cumulative preference dividend of 5% half yearly; and (b) Two votes shall be attached to each preference share issued." Due to an outbreak of the Pink Mealy bug disease, the production of bush tea has dramatically declined. The board of directors of Fever Grass Ltd. propose to alter clause 17(a) of the governing regulations to reduce the preference dividend from 5% to 2 % and to move a resolution to increase the voting rights of ordinary shareholders. Advise the preference shareholders
Nativity is a relatively small, privately owned firm. Last year the company had after-tax income of $15,000 and 10,000 shares were outstanding. The owners were tying to determine the value of the stock before prior to taking the company public. A similar firm that is publicly traded, had a P/E ratio of 5. Estimate the market value of one share the Nativity’s stock.

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