Homework Help is Here – Start Your Trial Now!
Business
Accounting
Identifying and Analyzing Financial Statement Effects of Dividends The statement of shareholders' equity of Reliable Storage Corporation for the year ended December 31, reports the following dividends paid to shareholders ($ thousands). Distributions to equity holders Preferred shares $346,106 Common shares $2,234,182 The year-end balance sheet includes the following ($ thousands except share data). Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 161,000 shares issued and outstanding $6,440,000 Common Shares, $0.10 par value, 650,000,000 shares authorized, 174,130,881 shares issued and outstanding $27,861 a. Use the financial statement effects template to indicate the effects of (a) the preferred dividend declaration and payments and (b) the common dividend declaration and payments. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. ($ thousands) Transaction (a) Preferred dividend payment (b) Common dividend payment Dividends per Share Preferred shareholders: $ Common shareholders: $ Check Cash Cash Cash Asset 0.94 x 0.01 X (346,106) ✔ (2,234,182) ✔ ◆ N/A b. Determine the dividends per share for both classes of stock. Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). N/A Noncash Assets 0✔= → ✓ N/A 0✓= N/A Balance Sheet Liabilities 0✔ → 0✔ ◆ N/A N/A Contrib. Capital

Identifying and Analyzing Financial Statement Effects of Dividends The statement of shareholders' equity of Reliable Storage Corporation for the year ended December 31, reports the following dividends paid to shareholders ($ thousands). Distributions to equity holders Preferred shares $346,106 Common shares $2,234,182 The year-end balance sheet includes the following ($ thousands except share data). Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 161,000 shares issued and outstanding $6,440,000 Common Shares, $0.10 par value, 650,000,000 shares authorized, 174,130,881 shares issued and outstanding $27,861 a. Use the financial statement effects template to indicate the effects of (a) the preferred dividend declaration and payments and (b) the common dividend declaration and payments. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. ($ thousands) Transaction (a) Preferred dividend payment (b) Common dividend payment Dividends per Share Preferred shareholders: $ Common shareholders: $ Check Cash Cash Cash Asset 0.94 x 0.01 X (346,106) ✔ (2,234,182) ✔ ◆ N/A b. Determine the dividends per share for both classes of stock. Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). N/A Noncash Assets 0✔= → ✓ N/A 0✓= N/A Balance Sheet Liabilities 0✔ → 0✔ ◆ N/A N/A Contrib. Capital

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Can you fix the dividends per share for both classes of stock.

**Identifying and Analyzing Financial Statement Effects of Dividends** The statement of shareholders' equity of Reliable Storage Corporation for the year ended December 31 reports the following dividends paid to shareholders (in thousands of dollars): - **Distributions to equity holders**: - Preferred shares: $346,106 - Common shares: $2,234,182 The year-end balance sheet includes the following data (in thousands of dollars, except share data): - Preferred Shares: $0.01 par value, 100,000,000 shares authorized, 161,000 shares issued and outstanding, $6,440,000 - Common Shares: $0.10 par value, 650,000,000 shares authorized, 174,130,881 shares issued and outstanding, $27,861 ### a. Financial Statement Effects Template Use the financial statement effects template to indicate the effects of (a) the preferred dividend declaration and payments and (b) the common dividend declaration and payments. **Note**: - For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. - Indicate a decrease in an account category by including a negative sign with the amount. | Transaction | Cash Asset | Noncash Assets | Liabilities | Contrib. Capital | |-------------------------------|------------|----------------|-------------|-----------------| | (a) Preferred dividend payment| (346,106) | 0 | 0 | N/A | | Cash | ✔ | N/A | ✔ | N/A | | (b) Common dividend payment | (2,234,182)| 0 | 0 | N/A | | Cash | ✔ | N/A | ✔ | N/A | ### b. Determine the dividends per share for both classes of stock. **Note**: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). - **Dividends per Share**: - Preferred shareholders: $0.94 - Common shareholders: $0.01 ✔ Check
Transcribed Image Text:**Identifying and Analyzing Financial Statement Effects of Dividends** The statement of shareholders' equity of Reliable Storage Corporation for the year ended December 31 reports the following dividends paid to shareholders (in thousands of dollars): - **Distributions to equity holders**: - Preferred shares: $346,106 - Common shares: $2,234,182 The year-end balance sheet includes the following data (in thousands of dollars, except share data): - Preferred Shares: $0.01 par value, 100,000,000 shares authorized, 161,000 shares issued and outstanding, $6,440,000 - Common Shares: $0.10 par value, 650,000,000 shares authorized, 174,130,881 shares issued and outstanding, $27,861 ### a. Financial Statement Effects Template Use the financial statement effects template to indicate the effects of (a) the preferred dividend declaration and payments and (b) the common dividend declaration and payments. **Note**: - For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. - Indicate a decrease in an account category by including a negative sign with the amount. | Transaction | Cash Asset | Noncash Assets | Liabilities | Contrib. Capital | |-------------------------------|------------|----------------|-------------|-----------------| | (a) Preferred dividend payment| (346,106) | 0 | 0 | N/A | | Cash | ✔ | N/A | ✔ | N/A | | (b) Common dividend payment | (2,234,182)| 0 | 0 | N/A | | Cash | ✔ | N/A | ✔ | N/A | ### b. Determine the dividends per share for both classes of stock. **Note**: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). - **Dividends per Share**: - Preferred shareholders: $0.94 - Common shareholders: $0.01 ✔ Check
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS