Splish Company's ledger shows the following balances on December 31, 2025.7% Preferred stock-$10 par value, outstanding 21,200 sharesCommon stock-$100 par value, outstanding 32,100 sharesRetained earningsAssuming that the directors decide to declare total dividends in the amount of $396,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.)$$Preferredb. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.)$Preferred$PreferredCommonc. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock. (Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.)$$212,0003,210,000651,000CommonCommon Assuming that the directors decide to declare total dividends in the amount of $396,000, determine how much each class of stockshould receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.a. The preferred stock is cumulative and fully participating. (Round the rate of participation to 6 decimal places, e.g.0.014278. Roundanswers to O decimal places, e.g. 38,487.)LA$LAPreferred$LAb. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.)Preferred52374Preferred14840$tA21475$tAc. The preferred stock is noncumulative and is participating in distributions in excess of a 9% dividend rate on the common stock.(Round the rate of participation to 6 decimal places, e.g.0.014278. Round answers to O decimal places, e.g. 38,487.)CommontA$343626Common381160Common374525

Dividends: The part of income that a company decides to distribute to their shareholders are termed…

Answered: Splish Company's ledger shows the…

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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The shareholders' equity of Vienna Co. includes the items shown below. The board of directors of Vienna declared cash dividends of $4 million, $8 million, and $50 million in each of its first 3 years of operation: 2020, 2021, and 2022, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 6%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is noncumulative and nonparticipating.
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Kaye Biotech Inc. had the following equity account balances at December 31, 2022: Preferred shares, $2.55, non-cumulative, Authorized: 20,400 shares Issued and outstanding: 5,200 shares Common shares, Authorized: Unlimited Issued and outstanding: 86,000 shares Retained earnings $36,400 On February 1, 2023, 5,200 preferred shares were issued at $7.90 each. The board of directors declared and paid the annual cash dividend on the preferred shares on June 30, 2023, and a 11% common share dividend was declared and distributed on the same day when the market price per common share was $4.30. On October 1, 2023, 20,400 common shares were issued at $4.44 each. Profit earned during 2023 was $410,800. KAYE BIOTECH INC. Statement of Changes in Equity For Year Ended December 31, 2023 Comman 291,080 41,400 Required: Using the information provided, prepare the statement of changes in equity for the year ended December 31, 2023. (Amounts to be deducted should be indicated by a minus sign.) Drafarroad…
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 254,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 12,000 shares outstanding Retained earnings Treasury stock, at cost, 5,400 shares During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10.4 per share, fair value $9.20 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital-excess par. ) The fair value of the stock was $4 on this date. 18: Declared and distributed a 4% stock dividend on outstanding common stock. The fair value is $5 per share. July December 1: Declared a 50 cents per share cash…
On December 31, 2020, Oriole, Inc. has 4100 shares of 4% $100 par value cumulative preferred stock and 59000 shares of $10 par value common stock outstanding. On December 31, 2020, the directors declare a $19200 cash dividend. The entry to record the declaration of the dividend would include: O a credit of $19200 to Cash Dividends. O a note in the financial statements that dividends of $2 per share are in arrears on preferred stock for 2020. O a credit of $19200 to Dividends Payable. O a debit of $19200 to Common Stock.
for comparative financial statements at the end of 2022? 2. What is the weighted.average number of shares for 2022 On January 1, 2021, Master Company had 250,000 ordinary (AA) S Problem 19-24 (IAA) Proble Timp shares outstanding. year: 1, 2021 1, 2021 1, 2021 December 1, 2021 1, 2022 September 1, 2022 Sold 24,000 shares Issued a 20% share dividend Sold 16,000 shares Purchased 15,000 treasury shares Issued a 3 for 1 share split Sold 60,000 shares January February March March July October June July December 1. What is the weighted average number of shares for 2021 for comparative financial statements at the end of 2022! What is a. 980,250 b. 329,800 c. 984,000 d. 969,000 a. 400,0 b. 442,5 C. 445,0 d. 460,00 Problem On Janua shares ou а. 1,009,400 b. 1,049,400 C. 1,169,400 During d. 989,400
Cullumber Holding's accounting records show the following balances on December 31, 2020. 12% Preferred stock-$100 par value, outstanding 19,000 shares Common stock-$1 par value, outstanding 45,000 shares Retained earnings Assuming that the directors decide to declare total dividends in the amount of $500,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. Preferred (a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. $38,487.) $ Preferred Common $1,900,000 (b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) $ 45,000 Common 1,550,000 (c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock. (Round the rate of participation to 4…
Ayayai Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $120,000. In 2022, the company had the following treasury stock transactions. Purchased 5,500 shares at $9 per share. Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $7 per share. Mar. 1 June 1 Ayayai Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $30,000. D (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit S
The shareholder's equity section of Chen Industries Limited at November 30, 2022 is shown below: Shareholders' Equity $1.50 cumulative preferred shares, 1,000 shares issued $ 50,000 Common shares, 10,000 shares issued Retained earnings $306,000 During 2023 the company completed the following transactions: 196,000 February 10 Declared a regular cash dividend on the preferred shares. March 10 Paid the cash dividend Declared a 10% stock dividend on April 14 the common shares. Market price per May 14 July 6 share REQUIRED: 60,000 1. November 20 Received equipment valued at $30,000 and issued 3,750 common shares. common share was $7/ share Distributed the stock dividend Issued 2,000 common shares for $5/ Journalize Chen's transactions. Explanations are not required. 2. Prepare the shareholder's equity section of Chen Industries Limited balance sheet at
The shareholders' equity of Sarikas Company includes the items shown below. The board of directors of Sarikas declared cash dividends of $3.7 million, $6.0 million, and $52.8 million in each of its first three years of operation: 2022, 2023, and 2024, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 6%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. Note: Round your final answers to 2 decimal places. Year 2022 $ Preferred Common 3.70 Per share $ 0.00 Per share 2023 2024 $ 6.00 Per share $ 0.00 Per share Per share Per share
Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc. authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on August 20, 2019? Select one: O a. Dr. Dividends Payable $500,000. Cr. Cash $500,000 O b. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 Oc. Dr. Dividends Payable $33,000. Cr. Cash $33,000 Od. No entry is necessary Oe. None of the above Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019 the board of directors of Roush, Inc, authorizes a $.33 per share dividend to shareholders of record on July 31, 2019. The dividend will be paid August 20, 2019. What is the entry on July 31, 2019? Select one: Oa. Dr. Cash Dividends $33,000. Cr. Dividends Payable $33,000 O b. Dr. Dividends Payable $500,000. Cr. Cash Dividends $500,000 Oc. No entry is necessary Od. Dr.…
On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par and retained earnings of $749,000. The company issued 43,000 shares of common stock at par on July 1 and earned net income of $395,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2022, for the following two independent assumptions. (Credit account titles are automatically indented when 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.) (a) (b) No. Account Titles and Explanation (a) Par value is $10 and market price is $15. Par value is $5 and market price is $8. (b) Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Debit 277,425 147,960 Credit 184,950 277,425 92,475 332,910

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