EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781337268998
Author: PAGACH
Publisher: YUZU
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Question
Chapter 16, Problem 1RE
To determine
Identify the dividend distribution for each class of stock when
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For the year 2021, Aquamarine Corporation has earned a net income of P400,000.
Compute for the basic earnings per share under each of the following assumptions
a. The company has only one class of stock with 100,000 shares outstanding
b. The company has shares outstanding as follows:
8% Preference Share Capital P50 par, 20,000 shares outstanding
Ordinary Share Capital P10 par, 100,000 shares outstanding
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Titus Company has issued 10%, nonparticipating, cumulative preferred stock with a total par value of
$400,000 and common stock with a total par value of $800,000.
No dividends are in arrears.
How much cash will be paid to the preferred stockholders and the common stockholders,
respectively, if cash dividends of S180,000 are distributed?
a) $80,000 to preferred and $100,000 to common
b) $40,000 to preferred and $140,000 to common
c) $60,000 to preferred and $120,000 to common
d) $55,000 to preferred and $125,000 to common
Chapter 16 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
Ch. 16 - What are the four important dates in regard to a...Ch. 16 - How does the ex-dividend date differ from the date...Ch. 16 - Prob. 3GICh. 16 - Prob. 4GICh. 16 - Prob. 5GICh. 16 - Prob. 6GICh. 16 - How does the accounting for a liquidating dividend...Ch. 16 - Prob. 8GICh. 16 - Prob. 9GICh. 16 - Prob. 10GI
Ch. 16 - What items might a corporation include in the...Ch. 16 - Prob. 12GICh. 16 - Prob. 13GICh. 16 - Prob. 14GICh. 16 - Prob. 15GICh. 16 - On what date are stock dividends and splits...Ch. 16 - Prob. 17GICh. 16 - What two earnings per share figures generally are...Ch. 16 - Prob. 19GICh. 16 - Prob. 20GICh. 16 - Prob. 21GICh. 16 - A company with potentially dilutive share options...Ch. 16 - Prob. 23GICh. 16 - Prob. 1MCCh. 16 - A prior period adjustment should be reflected, net...Ch. 16 - Prob. 3MCCh. 16 - Effective May 1, the shareholders of Baltimore...Ch. 16 - Prob. 5MCCh. 16 - For purposes of computing the weighted average...Ch. 16 - In determining basic earnings per share, dividends...Ch. 16 - Prob. 8MCCh. 16 - Prob. 9MCCh. 16 - Prob. 10MCCh. 16 - Prob. 1RECh. 16 - Prob. 2RECh. 16 - Prob. 3RECh. 16 - Use the same facts as in RE 16-3, but instead...Ch. 16 - Given the following current year information,...Ch. 16 - In Year 2, Adams Corporation discovered that it...Ch. 16 - Howard Corporal ion had 10,000 shares of common...Ch. 16 - Given the following year-end information for...Ch. 16 - Aiken Corporation has compensatory share options...Ch. 16 - Marlboro Corporation has 9% convertible preferred...Ch. 16 - Sarasota Corporation has 9% convertible bonds...Ch. 16 - Given the following year-end information, compute...Ch. 16 - Prob. 1ECh. 16 - Dividends Andrews Company has 80,000 available to...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Stock Dividend Comparison Although Oriole Company...Ch. 16 - Prob. 6ECh. 16 - Prob. 7ECh. 16 - Prob. 8ECh. 16 - Prob. 9ECh. 16 - Prob. 10ECh. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Weighted Average Shares At the beginning of the...Ch. 16 - Prob. 14ECh. 16 - Prob. 15ECh. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Francis Company has 24,000 shares of common stock...Ch. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Prob. 26ECh. 16 - Prob. 27ECh. 16 - Prob. 28ECh. 16 - Keener Company has had 1,000 shares of 7%, 100 par...Ch. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Prob. 14PCh. 16 - Prob. 15PCh. 16 - Prob. 16PCh. 16 - Prob. 17PCh. 16 - Prob. 18PCh. 16 - Prob. 19PCh. 16 - Prob. 20PCh. 16 - Prob. 21PCh. 16 - Prob. 22PCh. 16 - Prob. 23PCh. 16 - Frost Company has accumulated the following...Ch. 16 - Prob. 25PCh. 16 - Prob. 26PCh. 16 - Problems may be encountered in accounting for...Ch. 16 - Stock splits and stock dividends may be used by a...Ch. 16 - Earnings per share (EPS) is the most featured...Ch. 16 - The earnings per share data required of a company...Ch. 16 - Prob. 5CCh. 16 - Public enterprises are required to present...Ch. 16 - Prob. 7CCh. 16 - Ryan Company has as a goal that its earnings per...
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- The Chester Company has issued 10%, nonparticipating, cumulative preferred stock with a total par value of $400,000 and common stock with a total par value of $800,000. No dividends are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $180,000 are distributed?arrow_forwardCovid Contractors has 500,000 shares of common stock outstanding, 200,000 shares of preferred stock outstanding, and 20,000 bonds ($1,000 par). The common shares are selling for $40.00 per share, the preferred share are selling for $50 per share, and the bonds are selling at par. a. What would be the weight used for common stock in the computation of Team's WACC? b. What would be the weight used for preferred stock in the computation of Team's WACC? c. What would be the weight used for bonds in the computation of Team's WACC?arrow_forwardThe total dividends to be given to preferred stock, if preferred stock is non-cumulative and fully participating, would be:arrow_forward
- Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued In 2020, The company declared and paid $30,000 of cash dividends. $50 - Common stock, $15 par value, 300,000 shares issued and outstanding $4, In 2021. The company declared and paid $150,000 of cash dividend. Required: How much is the TOTAL cash dividends that will be distribu preferred stock is cumulativearrow_forwardFor the year ended 31 December 20X1, Bright-Warm Utility Company had net income of $1,750,000. The company had an average of 500,000 shares of common stock outstanding, 20,000 shares of convertible preferred, and no other potentially dilutive securities. Each share of preferred pays a dividend of $10 per share, and each is convertible into five shares of the company's common stock. Calculate the company's basic and diluted EPS.arrow_forwardCovid Contractors has 4.5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 200 thousand bonds ($1,000 par). The common shares are selling for $50.00 per share, the preferred share are selling for $75 per share, and the bonds are selling at par. What would be the weight used for common stock in the computation of Team's WACC? What would be the weight used for preferred stock in the computation of Team's WACC? c. What would be the weight used for bonds in the computation of Team's WACC?arrow_forward
- Columbia Clay, Inc. issues 1.18 million shares of preferred stock with a par value of $11.00 at its market price of $35.00 per share. The issuance should be recorded with a debit to Cash for: Multiple Choice $28.32 million, a credit to Additional Paid-in Capital for $12.98 million, and a credit to Preferred Stock for $41.30 million. $41.30 million, a credit to Preferred Stock for $12.98 million, and a credit to Additional Paid-in Capital for $28.32 million. $41.30 million and a credit to Preferred Stock for $41.30 million. $12.98 million and a credit to Preferred Stock for $12.98 million.arrow_forwardStockton Mineral Operations (SMO) currently has 310,000 shares of stock outstanding that sell for $94 per share. Assume no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: Note: Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32. SMO has a five-for-three stock split. SMO has a 11 percent stock dividend. SMO has a 39.0 percent stock dividend. SMO has a four-for-seven reverse stock split.arrow_forwardA company has preferred stock that can be sold for $27per share. The preferred stock pays an annual dividend of $3.50based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.10per share. Therefore, the cost of preferred stock isarrow_forward
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