On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10 par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the declaration of the dividend would include:

On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10 par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the declaration of the dividend would include:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Wildhorse Co. has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2020,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Annette's Accessories had the following stock issued and outstanding at January 1, 2019. 150,000…

A: Dividend is the amount which is paid to the shareholders of the entity in the form of return. It is…

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: ic City Corporation reported net income of $148,750 for 2019. The company had 10,000 shares of…

A: Basic earning per share is the amount of earning available to each shareholder after payment of…

Q: Kingbird, Inc. was organized on January 1, 2021. During its first year, the corporation issued 1,500…

A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Q: On Oct. 1, 2023, the board of directors of Marge Inc. declared a $1.50 per share cash dividend on…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: On December 31, 2020, Vitners Company had outstanding 400,000 shares of common stock. There were…

A: Introduction:- There were 400,000 shares of common stock and 40,000 shares of 8% cumulative…

Q: On December 31, 2023, the Bennett Company had 110,000 shares of common stock issued and outstanding.…

A: Earnings per share :— It is calculated by dividing net income available to equity shareholders by…

Q: On January 1, 2019, Jonathan Corporation had 75,000 shares of $1 par value common stock issued and…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares…

A: Earnings per share refer to the amount that is earned by the stockholders on every share held by…

Q: Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of…

A: A dividend represents the distribution of profit among the shareholders.

Q: Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7%…

A: A company distributes its earnings its stockholders by declaring the dividends. Preferred…

Q: Wildhorse Corporation issued 106,000 shares of $20 par value, cumulative, 9% preferred stock on…

A: A dividend is a distribution of profits by a company to its shareholders, usually in the form of…

Q: Altuve Co. was incorporated on January 1, 2019, at which time 575.000 shares of $10 par value common…

A: The accounting equation is a fundamental principle of accounting and represents the relationship…

Q: Common stock, $2 par, 200,000 shares issued and outstanding On October 1, 2020, the company…

A: Stock Dividend distribution is a method of capitalizing the retained earning. Stock dividend value…

Q: On December 31, 2020, Coronado, Inc. has 3600 shares of 6% $100 par value cumulative preferred stock…

A: Dividends declared payable to stockholders by a corporation's board of directors are known as…

Q: Mocha Company earned net income of $110,000 during the year ended December 31, 2018. On December 15,…

A: The dividend is declared to the shareholders from the business's retained earnings. The net income…

Q: The board of directors of Bramble Corp. declared a cash dividend of $1.30 per share on 36000 shares…

A: Cash dividends are the distributions of accumulated retained earnings of the company to its…

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: Madison Company earned net income of $75,000 during the year ended December 31, 2018. On December…

A: Annual Dividend to Preferred shareholders = Par value of preferred share x rate of dividend =…

Q: Wildhorse Company’s ledger shows the following balances on December 31, 2020. 7% Preferred…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock…

A: Stock dividends: Stock dividends are the number of shares issued by a company to the existing…

Q: On December 31, 2020, Oriole, Inc. has 4100 shares of 4% $100 par value cumulative preferred stock…

A: Dividend is the amount of profit being distributed to shareholders. It can be cash dividend,…

Q: The board of directors of Tamarisk, Inc. declared a cash dividend of $2.25 per share on 30000 shares…

A: Journal Entries are the entries to be recorded in the accounting books of the business for all the…

Q: The board of directors of Skysong, Inc. declared a cash dividend of $2.05 per share on 37000 shares…

A: Total dividend paid = No. of common stock c dividend per share =37000*$2.05 = $75,850

Q: Kimber Inc. reported net income of $177,500 during 2021. At January 1, 2021 Kimber had 100,000…

A: EPS stands for earning per share. A company has two types of EPS i.e basic and diluted. Basic EPS is…

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: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…

A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…

Q: The equity section from the December 31, 2020 and 2021, balance sheets of Westburne Corporation…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…

A: Journal entries are used to hold track of financial transactions. You enter transaction data into…

Q: The Murphy Corporation is authorized to issue 500,000 shares of $1 par value common stock. During…

A: Common stock refers to such security that shows the amount of capital contributed for getting the…

Q: Inc., has 2300 shares of 5%, $50 par value, cumulative preferred stock and 100000 shares of $1 par…

A: Stockholders are the Persons of entities whom the company issues its ownership rights in the form of…

Q: The board of directors of Tru Corporation declared cash dividends of $4.4 million, $9.0 million, and…

A: A dividend is a type of return given by a company to the different types of shareholders (equity and…

Q: Listed below are the transactions that affected the shareholders' equity of Branch-Rickie…

A: A cash dividend is the distribution of funds or money paid to stockholders generally as part of…

Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…

A: Stock Dividend is a corporate action taken by an organization to issue stock against retained…

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

A: recording of journal entry are as follows

Q: dave inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of…

A: The stock divided = 120,000*40%*$5 =$240, 000

Q: The Murphy Corporation is authorized to issue 500,000 shares of $1 par value common stock. During…

A: >Treasury Stock is the shares that have been re-purchased by the company from its shareholders…

Q: Determine the amount of dividends per share on preferred and common stock for each of the three…

A: Preferred stockholders are having preferences of receiving dividends before any dividend is…

Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: Prepare journal entries to record the transactions assuming: a.) The securities are classified as…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Waterway, Inc. has 2700 shares of 4%, $50 par value, cumulative preferred stock and 54000 shares of…

A: Dividends are paid first to preferred stockholders and the remaining balance is paid to common…

Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Skysong Company's ledger shows the following balances on December 31, 2025. 6% Preferred stock-$10…

A: Preferred stock is a hybrid form of financing that combines some features of common stock and some…

Question

View Policies
Current Attempt in Progress
On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock and 60600 shares of $10
par value common stock outstanding. On December 31, 2021, the directors declare a $20500 cash dividend. The entry to record the
declaration of the dividend would include:
O a credit of $2300 to Cash Dividends.
O a debit of $20500 to Common Stock.
O a credit of $20500 to Dividends Payable.
O a note in the financial statements that dividends of $4 per share are in arrears on preferred stock for 2021.
Save for Later
Attempts: 0 of 1 used
Submit Answer

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Marigold, Inc. has 10500 shares of 4%, $100 par value, noncumulative preferred stock and 105000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $49300 dividend in 2019. In 2020, $111000 of dividends are declared and paid, What are the dividends received by the preferred and common shareholders in 2020? Preferred Common $42000 $69000 $0 $111000 $79500 $31500 $55500 $55500 96 5 6 7 d
On Oct. 1, 2022, the board of directors of Purple Inc. declared a $3.00 per share cash dividend on 95,000 shares of $1 par value common stock. The dividend will be paid to stockholders who own shares on Dec. 31, 2022. The dividend will be paid on Feb. 1, 2023. What journal entry, if any, is required on each of the following dates? a. Oct. 1, 2022 b. Dec. 31, 2022 c. Feb. 1, 2023
On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per share. On December 31, 2019, Ortiz LLC has 1,000 shares of common stock outstanding. It declares a $3 per share cash dividend on November 15 to stockholders to record on December 31. The dividends are paid on December 31.
Pharoah Corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on January 1, 2021, for $2,530,000. In December 2023, Pharoah declared its first dividend of $840,000. Prepare Pharoah’s journal entry to record the issuance of the preferred stock.
Bramble, Inc. has 10700 shares of 5%, $100 par value, noncumulative preferred stock and 107000 shares of $1 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $50500 dividend in 2019. In 2020, $109300 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020? Preferred Common $109300 $60800 $48500 $53500 $55800 $54650 $54650
Lee Company has the following capital structure. Common stock, $1 par, 100,000 shares issued and outstanding On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Lee Company would record Select one: a. A debit to Retained Earnings for $5,000. b. A credit to Dividends Payable for $70,000. c. A credit to Paid-in Capital in Excess of Par—Common Stock for $70,000. d. A credit to Retained Earnings for $75,000.
Java Company earned net income of $85,000 during the year ended December 31, 2024. On December 15, Java declared the annual cash dividend on its 4% preferred stock (par value, $120,000) and a $0.25 per share cash dividend on its common stock (50,000 shares). Java then paid the dividends on January 4, 2025. Read the requirements. Requirement 1. Journalize for Java the entry declaring the cash dividends on December 15, 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date 2024 Dec. 15 Accounts and Explanation Debit Credit Requirements 1. Journalize for Java the entry declaring the cash dividends on December 15, 2024. 2. Journalize for Java the entry paying the cash dividends on January 4, 2025. X
On October 1, 2024, Carla Vista Co. declared an annual cash dividend to preferred shareholders of $3 per share; at the time the dividend was declared, there were 2.500 preferred shares issued and outstanding. The date of record for the dividend was December 1 and the dividend was paid on December 31. On October 31, 2024 the company also declared a 3% stock dividend for common shareholders; at the time the stock dividend was deared the common shares were trading at $10 per share and Carla Vista had 22.000 commons shares issued and outstanding. The date of record was December 15 and the issuance date of the dividend was December 31. (a) Record any and all journal entries that occurred on each of the dates indicated above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "O" for the amounts. List all debit entries before credit entries. Record journal entries in…
On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:April 1 Issued 20,000 shares of common stock for $200,000.April 15 Issued 10,000 shares of common stock for $125,000.May 12 Purchased 2,500 shares of common stock for $75,000.June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 51. Prepare journal entries for the above transactions.2. Prepared the stockholders’ equity section of Kelly Corporation’s balance sheet as of June 30, 2019. Net income for the period April 1 through June 30 was $150,000.3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income, retained earnings, and cash flows?
Concord Corporation has 1,000,000 authorized shares of $25 par value common stock. As of June 30, 2020, there were 625,000 shares issued and outstanding. On June 30, 2020, the board of directors declared a $0.50 per share cash dividend to be paid on August 1, 2020. Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) (b) (c) Debit Credit
Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on January 1, 2021, for $2,590,000. In December 2023, Sunland declared its first dividend of $770,000. If the preferred stock is cumulative, how much of the $770,000 would be paid to common stockholders?
Darling Corporation issued 200,000 shares of $20 par value, 5% preferred stock on January 1, 2019, for $4,500,000. In December 2021, Darling declared its first dividend of $800,000. Part 1 Part 2 If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders? Common Stock Dividends $