XYZ company's outstanding stock consists 10,000 shares of common stock with a $10 par value and 1,000 shares of noncumulative 5% preferred stock with a $100 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 Year 2 Year 3 $2,000 $6,000 $32,000 Determine the total amount of dividends paid to preferred and common shareholders. a. $15,000 preferred; $25,000 common. b. $12,000 preferred ; $28,000 common. c. $12,000 preferred; $30,000 common. d. $10,000 preferred; $30,000 common.

XYZ company's outstanding stock consists 10,000 shares of common stock with a $10 par value and 1,000 shares of noncumulative 5% preferred stock with a $100 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 Year 2 Year 3 $2,000 $6,000 $32,000 Determine the total amount of dividends paid to preferred and common shareholders. a. $15,000 preferred; $25,000 common. b. $12,000 preferred ; $28,000 common. c. $12,000 preferred; $30,000 common. d. $10,000 preferred; $30,000 common.

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 stockholders' equity of Blue Corporation includes $300,000 of S1 par common stock and $500,000 par of 5% cumulative preferred stock. In its first year of operations, cash dividends of $20,000 were declared. In its second year of operations, cash dividends of $15,000 were declared. Now in its third year, cash dividends of $100,000 are declared. How much of the $100,000 year three dividends will preferred stockholders receive? Multiple Choice $25,000 $15,000 $40,000 $35,000
A company with 100,000 authorized shares of $6 par common stock issued 35,000 shares at $12. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
Sierra Corporation engaged in the following share transactions in the first quarter of their fiscal year: 19 Issued 5,500 common shares for cash of $11.50 per share. 3 Sold 2,500 $1.50 Class A preferred shares for $14,000 cash to new investors. Received inventory valued at $30,000 and vehicles with market value of $22,000 for 5,200 common shares. Jul. Aug. 11 Sep. 15 Issued 3,500 $2.00 Class B preferred shares for $14.00 per share. Required 1. Journalize the transactions. Explanations are not required. 2. How much contributed capital did these transactions generate for Sierra Corporation? Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) July 19. Issued 5,500 common shares for cash of $11.50 per share. Journal Entry Date Jul. 19 Accounts Debit Credit
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Agri Gold Ltd. began operations on January 1, 1983 by issuing 54,000 common shares at $13 per share and 26,000 $8 cumulative preferred shares at $20 per share. During 1983 Agri Gold Ltd issued an additional 8,000 common shares at $11 per share and 2,000 preferred shares at $30 per share. 2019 profit was $355,000 and the Board declared $81,000 in dividends. Required: Prepare the Shareholders' Equity section of Agri Gold Ltds Balance Sheet at December 31, 1983.
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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.