Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 15, Problem 15.1MC
Boone Corporation’s outstanding capital stock on December 15 consisted of the following:
- 30,000 shares of 5% cumulative
preferred stock , par value $10 per share, fully participating to dividends. No dividends were in arrears. - 200,000 shares of common stock, par value $1 per share.
On December 15, Boone declared dividends of $100,000. What was the amount of dividends payable to Boone’s common stockholders?
- a. $10,000
- b. $34,000
- c. $47,500
- d. $40,000
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Students have asked these similar questions
Arp Corp!'s outstanding capital stock at December 15, 20X5 consisted of the following:
●
30,000 shares of 5% cumulative preferred stock, par value $10 per share, fully participating as to dividends. No dividends
were in arrears.
200,000 shares of common stock, par value $1 per share.
On December 15, 20X5, Arp declared dividends of $100,000. What was the amount of dividends payable to Arp's common
stockholders?
O $40,000
O $34,000
O $47,500
O $10,000
Leftorium Inc. had the following balances in its shareholders' equity at the beginning
of the current year:
Common shares (with no par value, 9,000 shares). $ 180,000
Retained earnings..
92,000
Total shareholders' equity..
$272,000
During the year the following transactions took place:
1. Leftorium issued 7,000 shares at $20 per share.
2. The company declared a 10% stock dividend. The market price at declaration
was $21 per share.
3. The stock dividend was paid out.
4. Leftorium declared a 4 to 1 stock split.
Instructions
a) Provide journal entries for each transaction.
b) What is the total number of shares outstanding after all of the transactions have
taken place?
On January 1, Year 1, a company had the following transactions:
- Issued 10,000 shares of $2.00 par common stock for $12.00 per share.
- Issued 3,000 shares of $50 par, 6% cumulative preferred stock for $70 per share.
Purchased 1,000 shares of previously issued common stock for $15.00 per share.
No other shares of stock were issued or outstanding.
The company had the following dividend information available:
Year 1- No dividend paid
Year 2 Paid $2,000 total dividends
Year 3- Paid $20,000 total dividends
Year 4 paid $25,000 total dividends
Fill in the correct values for each year. If your answer is zero, please enter "0".
Year 1
Year 2
Common stock dividend
Preferred stock dividend
Dividends in arrears
Year 3
§§
$
$
$
Year 4
Chapter 15 Solutions
Intermediate Accounting (2nd Edition)
Ch. 15 - Prob. 15.1QCh. 15 - What are the retained earnings of a firm?Ch. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Does an entity have to legally dissolve treasury...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Do firms often use stock dividends to avoid...Ch. 15 - Prob. 15.13QCh. 15 - What is included in other comprehensive income?Ch. 15 - Is a specific format required for reporting...Ch. 15 - Prob. 15.16QCh. 15 - Boone Corporations outstanding capital stock on...Ch. 15 - Prob. 15.2MCCh. 15 - Prob. 15.3MCCh. 15 - Prob. 15.4MCCh. 15 - Prob. 15.5MCCh. 15 - Prob. 15.6MCCh. 15 - Prob. 15.7MCCh. 15 - Prob. 15.1BECh. 15 - Stockholders Equity Terminology, U.S. GAAP, IFRS....Ch. 15 - Common Stock Issuance, No Par Value. Perdido...Ch. 15 - Prob. 15.4BECh. 15 - Prob. 15.5BECh. 15 - Prob. 15.6BECh. 15 - Prob. 15.7BECh. 15 - Prob. 15.8BECh. 15 - Treasury Stock Transactions. Ginger Spice...Ch. 15 - Treasury Stock Transactions. On March 15, Chief...Ch. 15 - Treasury Stock Transactions, Retirement. Using the...Ch. 15 - Prob. 15.12BECh. 15 - Prob. 15.13BECh. 15 - Prob. 15.14BECh. 15 - Common Stock Issuance, Stated Value, Issue Costs....Ch. 15 - Common Stock Issuance. Par Value, Issue Costs,...Ch. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Treasury Stock Transactions, Retirement,...Ch. 15 - Treasury Stock Transactions, Disclosure. The...Ch. 15 - Treasury Stock Transactions. Several years ago,...Ch. 15 - Prob. 15.9ECh. 15 - Prob. 15.10ECh. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Preferred Stock Issuance Dividends, Disclosure....Ch. 15 - Prob. 15.14ECh. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Prob. 15.21ECh. 15 - Prob. 15.22ECh. 15 - Prob. 15.1PCh. 15 - Prob. 15.2PCh. 15 - Prob. 15.3PCh. 15 - Prob. 15.4PCh. 15 - Prob. 15.5PCh. 15 - Common Stock Issuance, Treasury Stock, Dividends,...Ch. 15 - Prob. 15.7PCh. 15 - Prob. 15.8PCh. 15 - Prob. 15.9PCh. 15 - Prob. 1JCCh. 15 - Judgment Case 2: Impact of Judgment in Accounting...Ch. 15 - Surfing the Standards Cases Surfing the Standards...Ch. 15 - Prob. 1BCCCh. 15 - Prob. 2BCC
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- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. 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