Question 2 Lea Corp. declared $35,000 in dividends in 2024. Share capital consists of 1,100 common shares and 3,700, $2 preferred shares. Dividends have not been paid on the preferred shares since 2021. Instructions Determine the dividends to be paid on the preferred shares assuming: a) the preferred shares are cumulative. b) the preferred shares are noncumulative.
Q: Assume the following information for Jewong Co. at December 31, 2020. 12% Cumulative and…
A: At the time of declaring dividend, the preference shareholders are the one to give preference of…
Q: Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000…
A: The non cumulative preference shares do not get any dividend in arrears for previous year. The…
Q: 1. On December 31, 2021 and 2020, Go Company had 100,000 ordinary shares and 10,000 cumulative…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: The shareholders' equity of Kendrick Corp. on August 31, 20 8% Preference share capital, P20 par…
A: From the profits and retained earnings, Preference shares are paid and the remaining amount is…
Q: Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary…
A: A cumulative preferred stock implies that a preferred stockholder is entitled to receive dividends…
Q: Aylmer follows IFRS On December 31, 2021 the company declared a dividend of $0.23 per share for…
A: Journal entry is the modern method of accounting in which all business transactions are recorded in…
Q: The following is information related to the shares of the JFC Company at the beginning of 2018…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: AWREYE Corporation föllöwing shäréhölders' équity accounts as e December 31, 2021: 6% Preference…
A: Solution : Given Face value of equity share 300000 Face value of preference share 200000…
Q: January 1, 2020 April 1, 2020 October 1, 2020 Shares outstanding Shares issued Treasury shares…
A: As per IAS 33 Earnings per share Treasury shares are own shares of company purchased by company…
Q: Lord Aguilar Corp. plans to declare and distribute a dividend in December 2018. There are 20,000…
A: Formula for the calculation of annual preference dividend; Annual Preference dividend=Number of…
Q: Question 3. On December 31, 2020, Adelphi Corporation has outstanding 500 shares of $100 par value,…
A: Preferred stock means the amount raised against which dividend is given to stock holder but after…
Q: for comparative financial statements at the end of 2022? 2. What is the weighted.average number of…
A: The shares outstanding do not include the treasury stock shares.
Q: Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000…
A: Cumulative Preference Shares: In the case of missing dividend payments in the past, cumulative…
Q: 6. At Dec. 31, 2018 and 2019, L. Pestano Corp. had outstanding 2,000 shares of P1,000 par value, 6%…
A: The cumulative preference shareholders have the right to get all the dividend in arrears and current…
Q: Part I A portion of the Stockholders' Equity section of Cailey Corporation's balance sheet as of…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: On January 3, 2025, SY Company of P15. The shares were originally P4,000,000. On January 4, 2025, SY…
A: Stock Split is an equity decision in which the quantity of shares is increased by reducing its par…
Q: The following information relates to X, Y, and Z as at 30 June 2021 Stock Share price Number of…
A: A set of stocks, bonds, or other financial products are compared based on their index values. It is…
Q: Shamrock Corporation has 9,400 shares of $100 par value, 8%, preferred stock and 48,400 shares of…
A: For cumulative preferred stocks, the preferred dividend keeps on cumulating for all the periods for…
Q: 2020 March I Sold 33,600 shares Issued a 20 percent stock dividend Sold 22,400 shares Purchased…
A: Weighted average number of shares means the average number of shares remains outstanding during the…
Q: Preferred shares, $4.55 non-cumulative, 52,000 shares authorized and issued* $ 3,328,000…
A: Dividend per share is calculated as total dividend paid divided by number of outstanding shares.
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…
Q: Function: SUM; Formula: Add, Subtract, Multiply, Divide; Cell Referencing Using Excel to Determine…
A: Calculation of weighted average number of shares :EventDates OutstandingShares…
Q: Determine the weighted-average number of shares outstanding as of December 31, 2026. The…
A: a.The weighted average number of shares outstanding as of December 31, 2026.Computation of weighted…
Q: At December 31,2018 and 2019, ABC Company had outstanding 4,000 shares of P 100 par value, 12%…
A: Cumulative preference shares are those shares on which dividend amount is accumulated till the time…
Q: (b) Crane, Ltd. has 11,000 outstanding no par value $1.00 preferred shares issued for $110,000 and…
A: Cumulative Preferred Stock is one of the type of preference shares in which it is mandatory for…
Q: On December 31, 2019, Jean Company 140,000 issued P100-par 8% cumulative preference shares and…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Whispering Corporation has 8,700 shares of $100 par value, 9%, preferred stock and 48,300 shares of…
A: Formula: Preferred dividend = Preferred shares x PAR value x Preferred rate
Q: Question 7 : Adham Corporation was organized on January 1, 2019. During its first year, the…
A: Equity share capital or common stock refers to the capital raised by a company by offering shares.…
Q: A corporation declared a cash dividend on its ordinary shares on Dec. 15, 2018, payable on Jan. 12,…
A: Step 1 Dividend is the amount paid by company to shareholders as an interest for buying and holding…
Q: Jupiter corporation had the following shares outstanding at December 31. 2018: Ordinary shares, par…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Assume the following information for Jewong Co. at December 31, 2020. 12% Cumulative and…
A: A dividend seems to be a monetary or non-monetary payment provided by a corporation to its…
Step by step
Solved in 3 steps
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Jupiter corporation had the following shares outstanding at December 31. 2018: Ordinary shares, par P80 - 320.000: 6% preference shares, par P80 - 160.000. Accumulated profits for dividend distribution amounted to P64.400. No dividends were declared for 2016 and 2017. If the preference share capital is cumulative and fully participating, what is the dividends per share of the preference share? (Round off answers to two decimal places.)
- (a) Your answer is correct. Determine the weighted-average number of shares outstanding as of December 31, 2026. (b) The weighted-average number of shares outstanding eTextbook and Media X Your answer is incorrect. Earnings per share 1751425 Assume that Ivanhoe Corp. earned net income of $3,500,000 during 2026. In addition, it had 101,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2026. Compute earnings per share for 2026, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. 2.55.) 34.66 Attempts: 1 of 3 usedRequirement 1. Compute AustinAustin Company's earnings per share for 20182018. Assume the company paid the minimum preferred dividend during 20182018. Round to the nearest cent. Select the formula, then enter the amounts to calculate the company's earnings per share for 20182018. (Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares.) ( - ) / = Earnings per share ( - ) / = Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Check Answer Data Table 2018 2017 Income Statement—partial: Net Income $6,660 $20,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheet—partial: Total Assets $200,000 $265,000 Paid-In Capital: Preferred Stock—9%, $6 Par Value;…Shamrock Corporation has 9,400 shares of $100 par value, 8%, preferred stock and 48,400 shares of $10 par value common stock outstanding at December 31, 2020.Answer the questions in each of the following independent situations.(a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2017, what are the dividends in arrears on December 31, 2020, balance sheet? The amount of dividends in arrears on the December 31, 2020 $ How should these dividends be reported? The cumulative dividend is reportednot reported as a liability. (b) If the preferred stock is convertible into 6 shares of $10 par value common stock and 3,400 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,…
