The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $59 million, $105 million, and $320 million in its first three years of operation-2024, 2025, and 2026, respectively. ($ in millions) Common stock $ 270 Paid-in capital-excess of par, common 1,150 Preferred stock, 8% 1,050 Paid-in capital-excess of par, preferred 725 Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is noncumulative and nonparticipating. (please post steps)

The shareholders' equity of ILP Industries includes the items shown below. The board of directors of ILP declared cash dividends of $59 million, $105 million, and $320 million in its first three years of operation-2024, 2025, and 2026, respectively. ($ in millions) Common stock $ 270 Paid-in capital-excess of par, common 1,150 Preferred stock, 8% 1,050 Paid-in capital-excess of par, preferred 725 Required: Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is cumulative and nonparticipating. Determine the amount of dividends to be paid to preferred and common shareholders in each of the three years, assuming that the preferred stock is noncumulative and nonparticipating. (please post steps)

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 shareholder's equity section of Chen Industries Limited at November 30, 2022 is shown below: Shareholders' Equity $1.00 cumulative preferred shares, 2,000 shares issued $ 60,000 Common shares, 5,000 shares issued 30,000 Retained earnings 122,000 $212,000 During 2023 the company completed the following transactions: February 10 Declared a regular cash dividend on the preferred shares. March 10 Paid the cash dividend April 14 Declared a 10% stock dividend on the common shares. Market price per common share was $10/ share May 14 Distributed the stock dividend July 10 Issued 5,000 common shares for $8/ share November 20 Received equipment valued at $50,000 and issued 5,000 common shares. REQUIRED: 1. Journalize Chen's transactions. Explanations are not required. 2. Prepare the shareholder's equity section of Chen Industries Limited balance sheet at November 30, 2023. Net income for the year ended November 30, 2023 was $175,000.
The board of directors of Tru Corporation declared cash dividends of $4.4 million, $9.0 million, and $51.0 million in each of its first 3 years of operation: 2019, 2020, and 2021, respectively. The shareholders' equity of Tru Corporation includes the items shown below. Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 5%, $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. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).
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 %…
Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share capital: Preferred shares, $5 cumulative dividend, 144,000 shares issued and outstanding Share capital: Common shares, 699,000 issued and outstanding Retained earnings 2018 arrears 2019 arrears No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $4,851.150 were declared. Calculate how much would be paid to each class of shares. 2020 2018 arrears 2019 arrears Preferred 2020 Preferred $ No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $4,851.150 were declared. Calculate how much would be paid to each class of shares. Common Cash dividend per share $ $14,400,000 Common 27,960,000 $ 22,900,000 Total S Total Assuming that the number of common shares remained constant throughout 2020, what was the cash dividend per share distributed to the common shareholders? (Round answer to 2 decimal places, e.g. 4.62.) $
Stanley Company has 18,000 outstanding shares of $25 par, 6.25% preferred stock, and 22,000 shares of $3 par value common stock. The Board of Directors declared and paid the following dividends: $20,000 in 2021, $30,000 in 2022, and $200,000 in 2023. 1. 2. Calculate the total amount of dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: noncumulative and participating. Show calculations and label answers (yellow highlight). Same as above except calculate the dividends allocated to both preferred and common shareholders in 2023 for the following type of preferred stock: cumulative and nonparticipating. Show calculations and label answers (yellow highlight).
Marlin, Incorporated, declared a cash dividend of $40,500 in 2022 when the following stocks were outstanding: Common stock 20,100 shares, par $15 $301,500 Preferred stock, 6%, 2,600 shares, par $10 26,000 No dividends were declared or paid during the prior year. Required: Compute the amount of cash that would be paid to each stockholder group under each of the following separate cases. Show the amount of current dividend and dividends paid in arrears wherever applicable. Case A The preferred stock is noncumulative. Case B The preferred stock is cumulative.
The equity section of the December 31", 2025, balance sheet for BOOYA Inc. showed the following: BOOYA Inc. Equity Section of the Balance Sheet December 31, 2025 Contributed Capital: Preferred shares, $0.25 non-cumulative, 80,000 shares authorized, 60,000 shares issued and outstanding Common shares, 250,000 shares authorized, 120,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $150,000 120.000 $270,000 92.500 $362,500 During the year 2026, BOOYA Inc had the following transactions affecting equity accounts: Sold 20,000 common shares for a total of $21,500 cash Sold 5,000 preferred shares for $3.00 each, cash. Issued and exchanged 7,000 common shares for equipment with a list price of $10,000 (fair value unknown). Common shares were trading at $1.42 on June 15th. Jan. 3 Mar. 1 June 15. Closed the Income Summary account, which showed a credit balance of $175,000. Dec. 31 The board of directors had not declared a dividend for the past two years…
Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. ANACONDA INTERNATIONAL CORPORATIONStatements of Shareholders' EquityFor the Years Ended Dec. 31, 2021, 2022, and 2023($ in millions) Preferred Stock$10 par Common Stock$1 par AdditionalPaid-In Capital Retained Earnings TotalShareholders' Equity Balance at January 1, 2021 65 520 1,860 2,445 Sale of preferred shares 30 900 930 Sale of common shares 7 56 63 Cash dividend, preferred (3 ) (3 ) Cash dividend, common (17 ) (17 ) Net income 340 340 Balance at December 31, 2021 30 72 1,476 2,180 3,758 Retirement of shares (2 ) (16 ) (24 ) (42 ) Cash dividend, preferred…
The board of directors of Builders Equipment Corporaion (BEC) declared cash dividends of $2.1 million, $7.0 million, and $48.4 million in each of its first three years of operation: 2019, 2020, and 2021, respectively. BEC's shareholders' equity includes the items shown below.Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 7%, $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. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).