Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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V5
Transcribed Image Text:Instructions
Complete the following statements. ***Note: Common shares were issued at $4 per
share.***
(a) The number of common shares issued was
(b)
The preferred shares dividend was $ per share.
(c)
The average issue price of the preferred shares was $
(d)
If Dividends have never been issued. How much Net Income has Chesher
Corporation earned over the years? $
(e) The total amount of cash and other assets paid to Chesher Corporation in exchange
for share capital, at December 31, 2010 was $
as total contributed
capital is the term used to describe the total amount of cash and other assets paid by
shareholders.
(f)
Do the preferred shareholders have a right to dividends in arrears if the board of
Directors Declared a Dividend this year? (Yes or NO) Why?
Yes or No
(highlight one)
Why?
Transcribed Image Text:Section D-Thinking /7
The following items were shown on the balance sheet of Chesher Corporation on
December 31, 2010:
Shareholders' Equity
Contributed Capital
Share Capital
Common shares, no par value, unlimited number of shares
authorized;
shares issued $1,200,000
$3 preferred shares, no par value, redeemable at $120, cumulative,
20,000 shares authorized, 5,000 shares issued
120,000
Total contributed capital
1,320,000
Retained Earnings
500,000
Total shareholders' equity $1,820,000
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