Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred stock and280,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company'sinception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $125,000 cash dividend atthe current year-end.Determine the amount distributed to each class of stockholders for this two-year-old company.Calculation of preferred dividend:Total cash dividendTo preferred shareholdersTo common shareholdersPar Value perPreferredShareDividendRate%Dividend perPreferredShareNumber ofPreferredSharesPreferredDividend fortwo years

Solution.. As the Preferred stocks are Cumulative therefore, Arrear of preferred dividend will…

Answered: Stockholders' equity of Ernst Company…

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 following is the Stockholders' Equity section of the balance for Spencer Corporation as of December 31, 2019. Stockholders' Equity Common stock, $1 par value; authorized, 10,000,000 shares. Issued and outstanding, 500,000 shares Additional paid-in capital, common stock Retained earnings Total Stockholders' Equity $500,000 3,500,000 6,750,000 $10.750.000 Spencer Corporation declared a 10% stock dividend on January 1, 2020, at which date the fair value of Spencer Corporation common stock was trading at $35 per share. Prepare the January 1, 2020, journal entry to record the declaration of the stock dividend. Date Account Debit Credit
Sanchez Company has 34,000 shares of 2% preferred stock of $100 par and 115,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1 $558,000 Year 2 $441,000 Year 3 $501,000 Determine the dividends per share for preferred and common stock for each year. Round the dividends per share to the nearest cent. Year 1 Year 2 Year 3 Amount distributed $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Preferred dividend $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Common dividend $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Dividends per share: Preferred stock $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Common stock $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Dividends Per Share Seacrest Company has 25,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends: Year 1 $50,000 Year 2 20,000 Year 3 75,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $ Common stock (Dividends per share) $ $ $
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value, 1,000 sharesauthorized, issued, and outstanding $ 95,000 Common stock—$___ par value, 4,000 shares authorized, issued,and outstanding 160,000 Retained earnings 310,000 Total stockholders' equity $ 565,000 4. If two years’ preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $20,100, what total amount will be paid to the preferred and to the common shareholders?
A company had stock outstanding as follows during each of its first three years of operations: 1,000 shares of 8%, $100 par, cumulative preferred stock and 43,000 shares of $10 par common stock. The amounts distributed as dividends follow. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. If your answer is zero, please enter "0". Preferred Common Year Dividends Total Per Share Total Per Share 1 $6,000 $ $ $ $ 2 8,000 $ $ $ $ 3 15,680 $ $ $ $
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