The shareholders' equity section of Charles Corporation at December 31, 2024, included the following:$4 preferred shares, cumulative,10,000 shares authorized, 4,000 shares issued$400,000Common shares, 500,000 shares authorized,350,000 shares issued2,000,000Dividends were not declared on the preferred shares in 2024 and are in arrears.On September 15, 2025, the board of directors of Charles Corporation declared all of the annual dividends on the preferred shares for2024 and 2025, to shareholders of record on October 1, 2025, payable on October 15, 2025.The amount of total dividends declared on preferred shares on September 15, 2025, is$32,000.$16,000.$20,000.○ $64,000.

The objective of the question is to calculate the total dividends declared on preferred shares on…

Answered: The shareholders' equity section 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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Crane Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1,000,000 shares authorized, issued and outstanding Contributed surplus (Common Shares) Retained earnings Total shareholders' equity The following transactions occurred, in the order given, during 2023: (a) (b) (c) (d) (e) (a) (b) No. Accounts Titles and Explanation (c) (d) Prepare the journal entries to record the above transactions for Crane Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (e) 1,000 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share.…
Ritz Company had the following shares outstanding and Retalned Earnings at December 31, 2020: Common shares (500,000 outstanding shares) Preferred shares (8 percent; 21,000 outstanding shares) Retained earnings $500,000 210,000 900,000 On December 31, 2020, the board of directors Is considering the distribution of a cash dividend to the common and preferred shareholders. No dividends were declared during 2018 or 2019. Three Independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of 2020 dividends would be $30,000. Case B: The preferred shares are cumulative; the total amount of 2020 dividends would be $30,000. Dividends were not in arrears prior to 2018. Case C: Same as Case B, except the amount is $75,000. Required: 1-a. Compute the amount of dividends, In total, payable to each class of shareholders for each case. Case A Case B Case C Preferred Common Total 1-b. Compute the amount of dMdend per share, payable to each class of shareholders for…
Oriole Corporation had 100,800 shares of stock outstanding on January 1, 2025. On May 1, 2025, Oriole issued 61,200 shares. On July 1, Oriole purchased 10,080 treasury shares, which were reissued on October 1. Compute Oriole's weighted-average number of shares outstanding for 2025. Weighted-average number of shares outstanding
The stockholders' equity accounts of Martinez Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,000 shares of common stock for $30,000. Mar. 20 Oct. 1 Nov. 1 Paid the dividend declared on October 1. Dec. 1 $300,000 1,000,000 15,000 480,000 689,000 40,000 Dec. 31 Purchased 1,000 additional shares of common treasury stock at $8 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022. Paid the dividend declared on December 1.
Bramble Corporation is authorized to issue an unlimited number of $S cumulative preferred shares and an unlimited number of common shares. On February 1, 2023, the general ledger contained the following shareholders' equity accounts: Preferred shares (8, 200 shares issued) $389, 500 Common shares (57, 400 shares issued)] 861,000 Retained earnings, 574,000 The following equity transactions occurred during the year ended January 31, 2024: Feb. 28 Issued 4, 100 preferred shares for $225, 500. Apr. 12 tssued 164,000 common shares for $2.624 mittion. May 25 Issued 4, 100 common shares in exchange for land. At the time of the exchange, the land was valued at $61,500. Jan. 1 Paid dividend of $250 per share to preferred shareholders. Jan. 31 Aloss of $41,000 was incurred for the year. Prepare the shareholders' equity section of the balance sheet at January 31, 2024, including any required disclosures. Assume Bramble is reporting under ASPE and there were no preferred dividend arrears at…
The following shareholders' equity accounts and the related activity during the year are in the ledger of Kenton Corporation at December 31, 2020. Common shares (unlimited authorized): Balance, Jan. 1 (259,000 shares) $1,725,000 Balance, Dec. 31 (260,000 shares) 1,739,000 Shares issued (1,000 shares) 14,000 Preferred shares (21,000 authorized, $8, cumulative): Balance, Jan. 1 (14,000 shares) 739,000 Balance, Dec. 31 (17,000 shares) 882,000. Shares issued (3,000 shares) 143,000 Additional contributed capital: Balance, Jan. 1 Balance, Dec. 31 35,000 35,000 Accumulated other comprehensive income (loss): Balance, Jan. 1. Balance, Dec. 31 Other comprehensive income Retained earnings: Balance, Jan. 1 Balance, Dec. 31 Loss Cash dividends (32,300) 16,400 48,700 ? 1,121,000. (119,000) (147,000) 1) Prepare a statement of changes in equity for the year ended December 31, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)…
On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common Stock, 100,000 issued $2 Par $200,000 Paid in capital in excess of par 800,000 Paid in capital share repurchase 5,500 Retained earnings 528,000 Treasury stock (2,000 shares at cost) (24,000) During 2021, Rebel Corporation had the following transactions dealing with its common shares: Jan. 15 Purchased 2,000 shares for immediate retirements at $12 per share. Feb. 10 Purchased 5,000 shares as treasury shares at $13 per share. April 1 Reissued 3,000 treasury shares at $11 per share. June 25 Retired 1,000 treasury shares when market value of each share was $12.50. July 1 Declared a cash dividend of 50 cents per share, payable…
Cullumber Holding's accounting records show the following balances on December 31, 2020. 12% Preferred stock-$100 par value, outstanding 19,000 shares Common stock-$1 par value, outstanding 45,000 shares Retained earnings Assuming that the directors decide to declare total dividends in the amount of $500,000, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock. Preferred (a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. $38,487.) $ Preferred Common $1,900,000 (b) The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. $38,487.) $ 45,000 Common 1,550,000 (c) The preferred stock is noncumulative and is participating in distributions in excess of a 12% dividend rate on the common stock. (Round the rate of participation to 4…
Blossom Inc., a publicly traded company, had 180,000 common shares outstanding on December 31, 2022. During 2023, the company issued 7,200 shares on May 1 and retired 12,000 shares on October 31. For 2023, the company reported net income of $228,500 after a loss from discontinued operations of $54,840 (net of tax). (a) Calculate the weighted average number of common shares. Weighted average number of common shares shares
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Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2024–2026. At December 31, 2023, the corporation’s accounts included: ($ in thousands) Common stock, 113 million shares at $1 par $ 113,000 Paid-in capital—excess of par 678,000 Retained earnings 920,000 November 1, 2024, the board of directors declared a cash dividend of $0.50 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. On March 1, 2025, 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 $2.9 million, but were purchased two years previously for $2.5 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. On July 12,…

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