OPerry Corporation was established on January 1, Year 1 when it issued 21,800 shares of $50 par, 5 percent, cumulative preferred stock and 66,000 shares of $10par value common stock. The company's earnings history is as follows:JBookhYear 1Year 2Year 3The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to preferred stockholders at the end of Year 2 isMultiple ChoiceO$121,360 Net loss$200,000 Net income$210,000 Net income.OOzero.$78,640.$109,000.$54,500.< PrevO10 of 10WNSave & Exit#NextistSubmit

To calculate the dividend to calculate the dividend paid to preferred stockholders at the end of…

Answered: Perry Corporation was established on…

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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OM, Inc. was organized on January 1, 20X2. The firm was authorized to issue 100,000 shares of $1 par value common stock. During 20X2, OM had the following transactions relating to stockholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 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 20X2? Select one: a. $370,000 b. $50,000 c. $420,000 d. $470,000 e. $250,000
Sweet Company's outstanding stock consists of 1,400 shares of noncumulative 6% preferred stock with a $100 par value and 11,400 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid $ 3,400 $ 8,800 $39,000 Year 1 Year 2 Year 3 The total amount of dividends paid to preferred and common shareholders over the three-year period is: Multiple Choice $25,200 preferred; $26,000 common. $17,200 preferred; $34,000 common. $8,400 preferred; $42,800 common. $20,200 preferred; $31,000 common.
Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows: Common stock, $5 par value, 1,000,000 Shares authorized, 500,000 shares issued $ 2,500,000 Contributed capital in excess of par, common stock 1,000,000 Retained earnings 3,000,000 The following selected transactions occurred during the current year: Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share. May 1 Purchased 10,000 of its own shares for $ 6 per share May 15 Issued 5,000 preferred stock, $10 par per share, for $12 per share cash Jun 1 Sold 5,000 of the shares purchased on May 1 for $ 7 each Aug. 20 Sold remaining 5,000 shares, purchased on May 1, for $ 4 each. Required: Prepare journal entries for the above transactions, explanations are not required.
In Draco Corporation’s first year of business, the following transactions affected its equity accounts. Issued 7,400 shares of $2 par value common stock for $52. It authorized 20,000 shares. Issued 1,850 shares of 12%, $10 par value preferred stock for $57. It authorized 3,000 shares. Reacquired 370 shares of common stock for $64 each. Retained earnings is impacted by reported net income of $84,000 and cash dividends of $32,000. Prepare the stockholders’ equity section of Draco’s balance sheet as of December 31.
When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51 par, 8 percent, cumulative preferred stock and 9,500 shares of $11 par common stock. Its earnings history is as follows: Year 1, net loss of $13,100; Year 2, net income of $58,900; Year 3, net income of $94,00. The corporation did not pay a dividend in Year 1. Assume that the board of directors declares a $64,880 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). a. How will the dividends paid from arrearage from year 1 be distributed to preferred stockholders? b. How will the dividends paid from dividends related to year 2 be distributed to preferred stockholders? c. How will the dividends paid from arrearage from year 1 be distributed to common stockholders?
Weaver Corporation had the following stock issued and outstanding at January 1, Year 2: 1. 109,000 shares of $10 par common stock. 2.6,500 shares of $80 par, 4 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 6,500 shares of preferred stock and a $5 per share dividend for the common shareholders. The dividend will be paid on July 1 to the shareholders of record on June 20. Required Determine the total amount of dividend to be paid to the preferred shareholders and common shareholders. Preferred stock Common stock Total dividend
Halverstein Company's outstanding stock consists of 11,900 shares of cumulative 5% preferred stock with a $10 par value and 5,100 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 $ Year 2 $ Year 3 $ 0 10,200 43,000 The amount of dividends paid to preferred and common shareholders in Year 2 is:
Perry Corporation was established on January 1, Year 1 when it issued 21,700 shares of $50 par, 5 percent, cumulative preferred stock and 64,000 shares of $10 par common stock. The company's earnings history is as follows: Year 1 Year 2 Year 3 $116,840 Net loss $195,000 Net income $205,000 Net income The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to common stockholders at the end of Year 3 is Multiple Choice zero. $54,250. $108,500. $120,410.
In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued 7,400 shares of $2 par value common stock for $52. It authorized 20,000 shares. • Issued 1,850 shares of 12%, $10 par value preferred stock for $57. It authorized 3,000 shares. Reacquired 370 shares of common stock for $64 each. ● • Retained earnings is impacted by reported net income of $84,000 and cash dividends of $32,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.) DRACO CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Total stockholders' equity
Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,520 shares. At the time of the stock dividend, the market value per share was $14. The entry to record this dividend is:?
Sweet Company’s outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a $100 par value and 11,800 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,800 Year 2 $ 7,800 Year 3 $ 41,000 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
Horton Company began business on January 1, 20x1 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $20 per share. On June 30, the Company declared a cash dividend of $1 per share to stockholders of record on July 31. The Company paid the cash dividend on August 30. On November 1, Horton reacquired 200,000 of its own shares of stock for $25 per share. On December 22, the Company resold half of these shares for $30 per share. a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/20x1 assuming that the Net Income for the year was $3,000,000.

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