Provide thus option ganeral Accounting question TechNova Corporation has 150 shares of $80, 5% cumulative nonparticipating preferred stock,and 2,000 shares of $20 par value common stock outstanding. The company paid $4,000 cashdividends, including two-year dividends in arrears to preferred stockholders.How much will the preferred stockholders receive?Options:A) $1,200B) $2,400C) $1,800D) $3,000

Step 1: Define Cumulative Nonparticipating Preferred StockCumulative nonparticipating preferred…

Answered: TechNova Corporation has 150 shares of…

Cornerstones of Financial Accounting

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ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

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Columbia Clay, Inc. issues 1.18 million shares of preferred stock with a par value of $11.00 at its market price of $35.00 per share. The issuance should be recorded with a debit to Cash for: Multiple Choice $28.32 million, a credit to Additional Paid-in Capital for $12.98 million, and a credit to Preferred Stock for $41.30 million. $41.30 million, a credit to Preferred Stock for $12.98 million, and a credit to Additional Paid-in Capital for $28.32 million. $41.30 million and a credit to Preferred Stock for $41.30 million. $12.98 million and a credit to Preferred Stock for $12.98 million.
For the year ended 31 December 20X1, Bright-Warm Utility Company had net income of $1,750,000. The company had an average of 500,000 shares of common stock outstanding, 20,000 shares of convertible preferred, and no other potentially dilutive securities. Each share of preferred pays a dividend of $10 per share, and each is convertible into five shares of the company's common stock. Calculate the company's basic and diluted EPS.
Peters, Inc. had 5,000 stock options exercisable into 5,000 common shares at an exercise price of $10. The average market price is $15. In the calculation of diluted earnings per share, what effect would the stock options have on the numerator and denominator, if any? Round to the nearest whole number. O $50,000 increase numerator, 0 effect denominator. O $-0- numerator, 3,333 increase denominator. O $-0- numerator, 0 effect denominator. O $-0- numerator, 1,667 increase denominator.
Gourmet Inc. issued $24 million of $1 par preferred stock on February 1, 2018. The company issued 1 million shares. The preferred stock has a 6% fixed annual cash dividend and no maturity date. Assume that the holder of the preferred shares has the option to require redemption. Requirements a. How would Gourmet account for the preferred stock dividends? b. What is the journal entry when the firm issued the preferred shares? Requirement a. How would Gourmet account for the preferred stock dividends? If Gourmet were a U.S. GAAP reporter then A. the entire proceeds would be classified as liability. Dividends are a reduction of equity. ○ B. the entire proceeds would be classified as equity. Dividends are a reduction of equity. ○ C. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at the present value of an annuity. D. the shares would be classified as equity and the fixed dividend characteristic of the share would…
The New Dance LLC. has 200 shares of oustanding; cumulative preferred stock that calls quarterly dividends of $5/share. New Dance LLC. has deferred paying a dividend for the last 5 quarters. Assuming that this LLC. wants to pay a dividend to its common stockholders, what is their total dollar$ that it must first pay to its preferred stockholders?
Elston Limited had the following equity accounts on January 1, 2020: Share Capital—Ordinary ($5 par) $400,000, Share Premium—Ordinary $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury share transactions. Mar. 1 Purchased 5,000 shares at $9 per share. June 1 Sold 500 shares at $12 per share. Sept. 1 Sold 2,500 shares at $10 per share. Dec. 1 Sold 1,000 shares at $6 per share. Elston uses the cost method of accounting for treasury shares. In 2020, the company reported net income of $34,000. Instructions: a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 2020, for net income. b. Post the journal related to these accounts: (1) Share Premium—Treasury, (2) Treasury Shares, and (3) Retained Earnings. Ese a formal form of General Ledger. c. Prepare the equity section for Elston Limited at December 31, 2020.
The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $646,800. What credit or credits will the entry consist of? Select the correct answer. -Preferred Stock for $509,600 and Retained Earnings for $137,200. -Paid-in Capital from Preferred Stock for $646,800. -Preferred Stock for $646,800. -Preferred stock for $509,600 and Paid-in Capital in Excess of Par Value - Preferred Stock for $137,200.
(b) Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
outstanding stock is composed of 10,000 shares of $100 par, noncumulative, preferred 8% stock, and 50,000 shares of no - par common stock. Preferred dividends have been paid every year except for the previous year. If $380,000 is to be distributed as a dividend for the current year what total amount would be distributed to the common stockholders? a) $160,000 b) $ 80,000 c) $380, 000 d) $300,000
Beldon, Inc., has outstanding 10,000 shares of $50 par value, 7% nonparticipating, cumulative preferred stock and 10,000 shares of $10 par value common stock. If the dividend on preferred stock is one year in arrears, and the total cash dividend declared this year is $72,000, then the total amounts distributed to preferred and common stockholders, respectively, are: Select one: a. $21,000 and $51,000 b. $70,000 and $2,000 c. $27,000 and $45,000 d. $60,000 and $12,000 e. None of the above
Bridgeport Corporation has outstanding 10,700 shares of $100 par value, 6% preferred stock and 65,500 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Bridgeport declares a cash dividend of $325,000.(a) Assume that the preferred are noncumulative.How much dividend will the preferred stockholders receive? Preferred stockholders would receive $enter a dollar amount How much dividend will the common stockholders receive? Common stockholders would receive $enter a dollar amount (b) Assume that the preferred are cumulative.How much dividend will the preferred stockholders receive? Preferred stockholders would receive $enter a dollar amount How much dividend will the common stockholders receive? Common stockholders would receive $enter a dollar amount
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