Olive Corporation has 75,000 outstanding shares of P5 par value ordinary share capital and 30,000 shares outstanding 5% P100 par value preference share capital. During October, the board of directors made the following dividend declarations: October 4 - Preference dividend, payable on January 7 to preference shareholders of record on December 15. October 21 - P3 per share dividend payable on January 7 to ordinary shareholders of record on December 15. Compute for the total cash dividends distributed to: Preference shareholders: Ordinary shareholders:

Olive Corporation has 75,000 outstanding shares of P5 par value ordinary share capital and 30,000 shares outstanding 5% P100 par value preference share capital. During October, the board of directors made the following dividend declarations: October 4 - Preference dividend, payable on January 7 to preference shareholders of record on December 15. October 21 - P3 per share dividend payable on January 7 to ordinary shareholders of record on December 15. Compute for the total cash dividends distributed to: Preference shareholders: Ordinary shareholders:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and outstanding. All 49,400 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $19 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a debit to a loss account for $1,820. credit to a gain account for $1,820. credit to Treasury Stock for $21,840. debit to Treasury Stock for $21,840. MacBook Pro
The shareholders’ equity of Tru Corporation includes $680,000 of $1 par common stock and $1,280,000 par value of 7% cumulative preferred stock. The company paid $68,000 cash dividends in Year 1 and another $68,000 cash dividends in Year 2. The board of directors of Tru declared cash dividends of $158,000 during Year 3. What is the amount of the cash dividends that will be paid to the common shareholders in Year 3? dividends to common shar
Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the Board of Directors voted a $1.20 per share cash dividend to stockholders of record as of September 5, payable September 30.Instructions(a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.(b) Prepare the journal entry for each of the dates above assuming the dividend were a liquidating dividend
The Sneed Corporation issues 12,700 shares of $46 par preferred stock for cash at $63 per share. The entry to record the transaction will consist of a debit to Cash for $800,100 and a credit or credits to: a.Preferred Stock for $584,200 and Retained Earnings for $215,900. b.Preferred stock for $584,200 and Paid-in Capital in Excess of Par Value−Preferred Stock for $215,900. c.Preferred Stock for $800,100. d.Paid-in Capital from Preferred Stock for $800,100.
Global Corporation had 60,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $30. The entry to record the dividend declaration is: Multiple Choice Debit Retained Earnings $180,000; credit Cash $180,000. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $120,000; credit Paid-In Capital in Excess of Par Value, Common Stock $60,000. Debit Retained Earnings $120,000; credit Common Stock Dividend Distributable $120,000. No entry is made until the stock is issued. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $180,0000.
Fancy Clothing Company is authorized to issue 110,000 shares of $2 par common stock. The company issued 5,100 shares at $6 per share, when the market price of the common stock was $10 per share. Later, Charter declared and paid a $0.50 per share cash dividend. The journal entry to declare the cash dividend would be: O Dividends Payable - Common 55,000 Cash Dividends O Cash Dividends OOO Dividends Payable - Common O Cash Dividends Dividends Payable - Common O Dividends Payable - Common Cash Dividends 2,550 55,000 2,550 55,000 2,550 55,000 2,550
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 138,000 shares of $7 par common stock. 2. 9,500 shares of $90 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. b. Prepare general journal entries to record the declaration and payment of the cash dividends. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. Preferred stock Common stock Total dividend Required A Required B >
A company declared a cash dividend of $.35 per common share to the shareholders of record on July 15. The cash dividend will be paid on July 31. This company has 500,000 shares authorized and 100,000 shares outstanding. What is the entry to record the payment on the payment date? O debit Common Dividend Payable 35,000 and credit Cash 35,000 O debit Common Dividend Payable 175,000 and credit Cash 175,000 O no entry on payment date O debit Retained Earnings 175,000; credit Common Dividend Payable 175,000 79°F Rain t
OM, Inc. was organized on January 1, 20X7. The firm was authorized to issue 1,000,000 shares of $2 par value common stock. During 20X7, OM had the following transactions relating to stockholders' equity: Issued 20,000 shares of common stock at $7 per share. Issued 40,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total amount recorded in the Common Stock account at the end of 20X7?
When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800 shares of $15 par value common stock. During its first month of operation, the corporation issued 7,940 shares of stock at a price of $25 per share. The journal entry for this transaction would include a a.credit to Common Stock for $198,500 b.debit to Cash for $119,100 c.credit to Paid-In Capital in Excess of Par—Common Stock for $79,400 d.debit to Common Stock for $115,800
Mt. Everest Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On December 1st, the Board of Directors declares a 4% Stock Dividend to be issued to the shareholders of record on December 15th and distributed on December 30th. The market price of the stock on December 1st was $25 per share. Calculate the amount the Company would Debit to Stock Dividends on December 15th:Calculate the amount the Company would Credit to Additional Paid-in Capital…Preferred Stock on December 15:
A company's board of directors votes to declare a cash dividend of $1.15 per share of common stock. The company has 23,000 shares authorized, 18,000 issued, and 17,500 shares outstanding. The total amount of the cash dividend is: