### Sunland Corporation Dividend Allocation Explanation**Background Information:**Sunland Corporation was established on January 1, 2021. Within its inaugural year, the corporation issued the following stocks:- **Preferred Stock:** 1,900 shares with a par value of $50 each.- **Common Stock:** 108,000 shares with a par value of $10 each.The cash dividends declared by the corporation at the end of each year are as follows:- **2021:** $5,200- **2022:** $14,200- **2023:** $27,000**Dividend Allocation Task:**The task is to allocate dividends to each class of stock. The preferred stock carries a 6% dividend rate and is noncumulative.**Allocation of Dividends:**- **Preferred Stock Calculation:** - **Dividend Rate:** 6% - **Par Value per Share:** $50 - **Number of Shares:** 1,900 The annual dividend for preferred stock is calculated as: \[ \text{Annual Dividend} = \text{Dividend Rate} \times \text{Number of Shares} \times \text{Par Value} \] \[ = 0.06 \times 1,900 \times 50 \] \[ = \$5,700 \]- **Common Stock Calculation:** Total dividend declared minus the preferred stock dividend gives the remaining amount for common stock.**Table of Allocations:**| Year | Allocation to Preferred Stock | Allocation to Common Stock ||------|-------------------------------|----------------------------|| 2021 | $5,200 | $0 || 2022 | $5,700 | $8,500 || 2023 | $5,700 | $21,300 |**Explanation of Allocation:**- **2021:** The total available dividend of $5,200 is less than the required $5,700 for preferred stock; hence all $5,200 goes to preferred stock.- **2022:** A full dividend of $5,700 is paid to preferred stock, with the remainder ($14,200 - $5,700 = $8,500) paid to common stock.- **2023:** A full dividend of $5,700 is again paid to preferred stock, with the

ANSWER:- a) Allocation Of Dividends To Each Class Of Stock Dividend Is 6% And…

Answered: Sunland Corporation was organized 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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On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 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 per share, fair value $9 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 of par.) The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3%…
On April 1, 2023, 400,000 common shares were issued at $0.90 per share. On June 1, the board of directors declared a 10% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.58, $2.06, and $2.36, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,547,500. Required: Prepare the company's equity section on the December 31, 2023, balance sheet.
The following transactions occurred for Rothman Corp. during 2024, its first quarter of operations (fiscal year ending Dec. 31): 1. 2. On Oct. 5, Rothman issued 2000 shares of $10 par common stock in an IPO and 400 shares of $40 par preferred stock for a lump sum of $85,000 cash. The values of the common and preferred stock were appraised separately at $30 and $50 per share, respectively. On Oct. 20, Rothman declared an 80% common stock dividend, when the market value per share of the common stock was $32. 3. On Dec. 5, the common stock dividend was issued. 4. On Dec. 20, a 3-for-1 stock split occurred for common stock. 5. On Dec. 30, Rothman purchased 100 shares of its own common stock for $14 per share. Instructions: A. Prepare the general journal entries to record each of the above transactions. B. Determine the number of common shares (1) issued and (2) outstanding at Dec. 31, 2024.
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Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Transactions during 2019 and other information relating to the shareholders' cquity accounts were as follows:1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31, 2018,Dakota had 100,000 authorized shares of $100 par, 10%, cumulative preferred stock; and 3,000,000 autho-rized shares of no-par common stock with a stated value of $5 per share.2. On January 9, 2019, Dakota formally retired all 30,000 shares of its treasury common stock and had them revert to an unissued basis. The treasury stock had been acquired on January 20, 2018. The shares were originally issued at $10 per share,3. Dakota owned 10,000 shares of Bush Inc, common stock purchased in 2016 for $750,000. The Bush stock was included in Dakota's short-term marketable securities portfolio at the end of 2018 at a value of $650,000.On February 13, 2019, Dakota declared a dividend in kind…
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Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c. On July 12, 2022, the corporation declared and distributed a 4 %…
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