The stockholders’ equity category of Greenbaum company’s balance sheet as of December 31, 2016, appeared as follows: Preferred stock, $100 par, 8%, 1,000 shares issued and outstanding $100,000 Common stock, $10 par, 20,000 shares issued and outstanding 200,000 Additional pain-in capital 250,000 Total contributed capital $550,000 Retained earnings 450,000 Total stockholder’s equity $1,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2014 or 2015. Greenbaum wants to declare a dividend of $59,000 for 2016. The determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions: The preferred stock is noncumulative, nonparticipating. The preferred stock is cumulative, nonparticipating.
Problem 11-3: The
Common stock, $10 par, 20,000 shares issued and outstanding 200,000
Additional pain-in capital 250,000
Total contributed capital $550,000
Total stockholder’s equity $1,000,000
The notes to the financial statements indicate that dividends were not declared or paid for 2014 or 2015. Greenbaum wants to declare a dividend of $59,000 for 2016.
The determine the total and the per-share amounts that should be declared to the preferred and common stockholders under the following assumptions:
- The preferred stock is noncumulative, nonparticipating.
- The preferred stock is cumulative, nonparticipating.
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