The outstanding share capital of Bramble Corporation consists of 3,245 preferred shares and 5,900 common shares for which$265,500 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value.Assuming that the company has retained earnings of $103,610 that is to be entirely paid out in dividends and that preferreddividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if thepreferred shares are cumulative and participating. (Round answers to O decimal places, e.g. 5,275.)Dividends$PreferredCommon$$Total

The objective of the question is to calculate the amount of dividends that should be paid to each…

Answered: The outstanding share capital of…

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 outstanding share capital of Flounder Corporation consists of 2,000 shares of $100 par value, 9% preference, and 5,200 shares of $50 par value ordinary. Assuming that the company has retained earnings of $82,500, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions. (a) The preference shares are non-cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ $ Preference (b) The preference shares are cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ Preference $ Preference $ Ordinary (c) The preference shares are cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Ordinary Ordinary
A. Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares: 18,000 shares of 2% cumulative preference shares, P75 par and 40,000 shares of P10 par ordinary shares. During its first four years of operations, the following amounts were distributed as dividends: first year, P22,500; second year, P28,800; third year, P40,100; fourth year, P77,000. Calculate the dividends per share on each class of shares for the first year
Stockholders' equity of Ernst Company consists of 80,000 shares of $5 par value, 10% cumulative preferred stock and 280,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $125,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders Par Value per Preferred Share Dividend Rate % Dividend per Preferred Share Number of Preferred Shares Preferred Dividend for two years
Use the following information for the next three (3) questions: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What total amount should be reported as share premium at year-end?
Al Anwar Company has 10,000 shares authorized, OMR2 par value, 4,000 shares issued and outstanding ordinary shares and 5% cumulative, non-participating. 7,000 shares authorized, OMR100 par value, 1000 shares issued and outstanding preference shares. Assume that AL Anwar did not declare dividends for the previous 2 years. The company declared a total of OMR10,000 cash dividend in the current year. How much dividend would be paid to ordinary shareholders?
s
Use the following information for the next three (3) questions: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What amount of retained earnings should be reported at year-end? Group of answer choices 3,550,000 4,500,000 3,430,000 2,950,000
Sweet Company’s outstanding stock consists of 1,700 shares of cumulative 5% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,700 Year 2 $ 6,700 Year 3 $ 35,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is: Multiple Choice $8,500 preferred; $36,400 common. $15,200 preferred; $29,700 common. $25,500 preferred; $19,400 common. $19,700 preferred; $25,200 common. $17,000 preferred; $27,900 common.
Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with a $100 par value and 11,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,700 Year 2 $ 9,400 Year 3 $ 40,500 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
Massive Corp. is authorized to issue unlimited $0.80 no- par preferred shares and unlimited no par common shares. There are 18,000 preferred and 54,000 common shares outstanding. In a five-year period, annual dividends paid were $1,000, $4,000, $71,000, $6,000, and $142, 000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00. Case A Preferred shares are cumulative and non-participating. Case B Preferred shares are non - cumulative and non - participating. Case C Preferred shares are non - cumulative and fully participating. Participation is based on the relative number of shares outstanding. Case D Preferred shares are non - cumulative and partially participating up to an additional $0.80 per share. Participation is based on relative annual total base dividends. ( Round allocation percentages values to nearest whole percent
provide answer for A, B and C
Sweet Company’s outstanding stock consists of 1,900 shares of cumulative 5% preferred stock with a $100 par value and 10,900 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 2,900 Year 2 $ 6,900 Year 3 $ 36,500 The amount of dividends paid to preferred and common shareholders in year 3 is:Multiple Choice $28,500 preferred; $8,000 common. $9,500 preferred; $27,000 common. $0 preferred; $36,500 common. $18,700 preferred; $17,800 common. $36,500 preferred; $0 common.

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