Knudsen Corporation was organized on January 1, 2019. During its fi rst year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $5,000; 2020, $12,000; and 2021, $28,000. Instructions a. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative. b. Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative. c. Journalize the declaration of the cash dividend at December 31, 2021, under part (b).

Q: King Tut Corporation issued 6,600 shares of common stock, all of the same class; 3,400 shares are…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: The board of directors of Ayayai Corp. declared a cash dividend of $1.50 per share on 40000 shares…

A: On the date of declaration of the dividend the company has to pass journal entry for creating…

Q: On June 30, 2019, when Elmer Inc. shares were selling for $ 65 each, the equity accounts had the…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…

A: Dividend Declared & Paid: Dividends declared refers to dividends that have been approved by the…

Q: omestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…

A: As mentioned in the question preference shareholders are cumulative in nature. Cumulative preference…

Q: Crazy Corporation was incorporated on January 1, 2023. Crazy is authorized to issue 80,00 shares of…

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

Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020

A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…

Q: Prepare the journal entries for all these transactions. Each transaction is independent from the…

A: When stock are issued at price which is more than the par value, the excess amount is transferred to…

Q: Cedar Corporation is authorized to issue 20,000 shares of 6%, $10 par, cumulative preferred stock.…

A: The journal entries are prepared to keep the record of day to day transactions of the business…

Q: Blossom Corporation was organized on January 1, 2019. During its first year, the company issued…

A: A dividend is that portion of the company's profits and retained earnings that the entities are…

Q: The balance sheet of Investtech Inc. at December 31, 2019, reported 2,000,000 com- mon shares…

A: Stockholder's Equity -Stockholder's Equity is a part of Balance Sheet. This section includes…

Q: On February 28, 2022, Scrooge Inc. split its common shares 3 for 1, and Cratchit Inc. issued a 5%…

A: Earnings per share represents the net income allocated to each share of a company. It indicates how…

Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…

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

Q: Prepare all the required journal entries to record these transactions.

A: 1.Number of shares for Dividend calculation = (Number of shares issued - Treasury shares)…

Q: Sunland Corporation was organized on January 1, 2021. During its first year, the corporation issued…

A: ANSWER:- a)                     Allocation Of Dividends To Each Class Of Stock Dividend Is 6% And…

Q: The board of directors of Blue Spruce Corp. declared a cash dividend of $2.45 per share on 32000…

A: Dividend is always paid on the outstanding shares of equity in the balance sheet.

Q: Assume that, on January 1, 2021, Sacramento Corporation paid $1,622,400 for its investment in 62,400…

A:

Q: On the first day of 2021, Paccar had 100,000 shares of common stock outstanding. The following…

A: Earnings per share are the amount of earnings of the entity during the current period that is…

Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…

A: Calculation of above requirement are as follows

Q: Calculate the balance of common shares at the end of 2022.

A: Capital of a company dividend into small units which is known as stocks/shares of the company.…

Q: The following shareholders' equity accounts and the related activity during the year are in the…

A: The objective of the question is to prepare a statement of changes in equity and the shareholders'…

Q: Cullumber Holding's accounting records show the following balances on December 31, 2020. 12%…

A: Cumulative preference shares are those shares that are paid a dividend every year. If any dividend…

Q: The following transactions occurred for Rothman Corp. during 2024, its first quarter of operations…

A: Shares The capital of the company divided into small units is called a Share. Each share is given a…

Q: Blue Devil Inc. completed the following transactions of stock issuance, treasury stock and stock…

A:

Q: ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a…

A: Share premium on ordinary shares issued = No. of shares issued x (Issue price per share - par value…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.