Metlock Company's ledger shows the following balances on December 31, 2025.4% Preferred stock-$10 par value, outstanding 20,700 sharesCommon stock-$100 par value, outstanding 27,700 sharesRetained earnings$207,0002,770,000569,000Assuming that the directors decide to declare total dividends in the amount of $336,000, determine how much each class of stockshould receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Roundanswers to O decimal places, e.g. 38,487.)Preferred$Common$b. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.)$Preferred$Commonc. The preferred stock is noncumulative and is participating in distributions in excess of a 6% dividend rate on the common stock.(Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.)$tAPreferredCommon$

Preferred Stock:The stock represents an ownership stake in a company. The dividend is at a fixed…

Answered: Metlock Company's ledger shows the…

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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Rollers company is incorporated on January 1, 2018. Company is authorized to issue 160,000 shares of $6 par value. Following transactions related to stockholder's equity is given below: 16,000 @ $8 per share 32,000 @ $9 per share $160,000 S80,000 3,500 shares @ $11 per share Shares issued Shares issued Net income Dividend paid Treasury stock purchased The balance of stockholder's equity at end of year 2018 is: a. $416,000 b. $457,500 c. $576,000 d. $489,500
On December 31, 2020, Oriole, Inc. has 4100 shares of 4% $100 par value cumulative preferred stock and 59000 shares of $10 par value common stock outstanding. On December 31, 2020, the directors declare a $19200 cash dividend. The entry to record the declaration of the dividend would include: O a credit of $19200 to Cash Dividends. O a note in the financial statements that dividends of $2 per share are in arrears on preferred stock for 2020. O a credit of $19200 to Dividends Payable. O a debit of $19200 to Common Stock.
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3%…
Cullumber Holding's accounting records show the following balances on December 31, 2020. 12% Preferred stock-$100 par value, outstanding 19,000 shares Common stock-$1 par value, outstanding 45,000 shares Retained earnings Assuming that the directors decide to declare total dividends in the amount of $500,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. Preferred (a) The preferred stock is cumulative and fully 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 Common $1,900,000 (b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) $ 45,000 Common 1,550,000 (c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock. (Round the rate of participation to 4…
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 100,000 shares authorized,45,000 shares issued and outstanding $ 1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,585,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the…
Grouper Limited's ledger shows the following balances on December 31, 2023: Preferred shares outstanding: 16,000 shares Common shares outstanding: 48,000 shares Retained earnings (a) Dividends $ $400,000 3,600,000 Assuming that the directors decide to declare total dividends in the amount of $444,000, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.50 per share. (Round intermediate percentage calculations to 4 decimal places, e.g. 12.2525% and final answers to O decimal places, e.g. 5,275.) Preferred 888,000 $ Common $ Total
Ayayai Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $120,000. In 2022, the company had the following treasury stock transactions. Purchased 5,500 shares at $9 per share. Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $7 per share. Mar. 1 June 1 Ayayai Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $30,000. D (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit S
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 10,000 shares outstanding Retained earnings Treasury stock, at cost, 5,000 shares During 2021, Fascom Inc. had several transactions relating to common stock. $ 250,000 500,000 100,000 1,000,000 2,000,000 25,000 January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April July December 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per…
The shareholder's equity section of Chen Industries Limited at November 30, 2022 is shown below: Shareholders' Equity $1.50 cumulative preferred shares, 1,000 shares issued $ 50,000 Common shares, 10,000 shares issued Retained earnings $306,000 During 2023 the company completed the following transactions: 196,000 February 10 Declared a regular cash dividend on the preferred shares. March 10 Paid the cash dividend Declared a 10% stock dividend on April 14 the common shares. Market price per May 14 July 6 share REQUIRED: 60,000 1. November 20 Received equipment valued at $30,000 and issued 3,750 common shares. common share was $7/ share Distributed the stock dividend Issued 2,000 common shares for $5/ Journalize Chen's transactions. Explanations are not required. 2. Prepare the shareholder's equity section of Chen Industries Limited balance sheet at
The shareholders' equity of Sarikas Company includes the items shown below. The board of directors of Sarikas declared cash dividends of $3.7 million, $6.0 million, and $52.8 million in each of its first three years of operation: 2022, 2023, and 2024, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 6%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. Note: Round your final answers to 2 decimal places. Year 2022 $ Preferred Common 3.70 Per share $ 0.00 Per share 2023 2024 $ 6.00 Per share $ 0.00 Per share Per share Per share
The stockholders' equity of Sheridan Company at July 31, 2026 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 160000 shares Paid-in capital in excess of par Retained earnings $3200000 O $1228800. O $1894400. O $960000. O $1740800. 170000 648000 $4018000 On August 1, 2026, the board of directors of Sheridan declared a 16% stock dividend on common stock, to be distributed on September 15th. The market price of Sheridan's common stock was $68 on August 1, 2026, and $74 on September 15, 2026. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?
The records of Uluru Charters reflected the following balances in the stockholders' equity accounts at December 31, 2024: Common stock, par $12 per share, 43,500 shares outstanding. Preferred stock, 8 percent, par $17.00 per share, 6,610 shares outstanding. Retained earnings, $227,000. On January 1, 2025, the board of directors was considering the distribution of a $62,700 cash dividend. No dividends were paid during 2023 and 2024. Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why might the dividends per share of common stock be different for noncumulative preferred stock and cumulative preferred stock?

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