Ponce Company has 50,000 shares of $100 par value, 8% cumulative preferred stock and 160,000 shares of $60 parvalue common stock. Ponce declares and pays cash dividends amounting to $440,000.If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?Preferred$320,000Preferred$400,000Preferred$128,000Preferred$440,000Common$120,000Common$40,000Common$312,000Common$0

Dividend is the amount of return paid to the shareholders of the entity for investing in the…

Answered: Ponce Company has 50,000 shares of $100…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Written, Inc. has outstanding 500,000 shares of P2 par common stock and 100,000 shares of no-par 8% preferred stock with a stated value of P5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P305,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive? 185,000. 150,000. 155,000. 80,000
Splish Brothers Inc. has 10,800 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021.If Splish Brothers wants to pay $395,000 of dividends in 2022, what amount of dividends will common stockholders receive? Dividends allocated to common stock $enter Dividends allocated to common stock in dollars
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Pettygrove Company had 1,500,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $7,500,000, and Retained Earnings is $2,250,000. The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the Common Stock account after this issuance? Multiple Choice $30,000,000 $34,500,000 $15,000,000 $22,500,000
The Chester Company has issued 10%, nonparticipating, cumulative preferred stock with a total par value of $400,000 and common stock with a total par value of $800,000. No dividends are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $180,000 are distributed?
Miriah Inc. has 6,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock?Select one:a. $0.50 per shareb. $30,000 in totalc. $300 in totald. $50 per share
Torino Company has 10,000 shares of $5 par value, 4% cumulative preferred stock and 100,000 shares of $10 par value commo outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid preferred stockholders in the second year before any dividend is paid to common stockholders is: Multiple Choice $2,000. $0. $3,000. $1,000.
Wildhorse Appliance Company has 5100 shares of 6%, $50 par value, cumulative preferred stock and 102000 shares of $1 par value common stock outstanding at December 31, 2025, and December 31, 2024. The board of directors declared and paid a $13300 dividend in 2024. In 2025, a total of $60,000 in dividends are declared and paid. What are the dividends received by the preferred stockholders in 2025? O $15300. O $43900. O $30600. O $17300.
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
PHSS, Inc. issues 5,000 shares of 6%, $100 par value preferred stock at the beginning of 20X1. All remaining shares are common stock. PHSS was not able to pay dividends in 20X1, but plans to pay dividends of $100,000 in 20X2. Assuming the preferred stock is cumulative, how much of the $100,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 20X2? Select one: a. $60,000 to preferred stockholders and $40,000 to common stockholders b. $40,000 to preferred stockholders and $60,000 to common stockholders c. $100,000 to preferred stockholders and $0 to common stockholders d. $80,000 to preferred stockholders and $20,000 to common stockholders. e. $30,000 to preferred stockholders and $70,000 to common stockholders
17. Graniel Couture has $260,000 of 8% noncumulative, preferred stock outstanding. Graniel Couture also has $80,000 of common stock outstanding. The company paid cash dividends of $56,000 during the year. This dividend should be distributed as follows: a. $20,800 common; $35,200 preferred; b. $56,000 preferred; $0 common. c. $20,800 preferred; $35,200 common. d. $0 preferred; $56,000 common. e. $28,000 preferred; $28,000 common.

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