Rensing, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2023 and 2024. As of December 31, 2025, it is desired to distribute $270,000 in dividends. Instructions: How much will the preferred and common stockholders receive under each of the following assumptions: 1. The preferred is noncumulative and nonparticipating. 2. The preferred is cumulative and nonparticipating. 3. The preferred is noncumulative and fully participating. 4. The preferred is cumulative and fully participating. 5. The preferred is cumulative and participating to 7% total. Choose a File

Rensing, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2023 and 2024. As of December 31, 2025, it is desired to distribute $270,000 in dividends. Instructions: How much will the preferred and common stockholders receive under each of the following assumptions: 1. The preferred is noncumulative and nonparticipating. 2. The preferred is cumulative and nonparticipating. 3. The preferred is noncumulative and fully participating. 4. The preferred is cumulative and fully participating. 5. The preferred is cumulative and participating to 7% total. Choose a File

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...

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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
Rensing, Inc., has $800,000 of 4% preferred stock and $1,200,000 ofcommon stock outstanding, each having a par value of $10 per share. Nodividends have been paid or declared during 2019 and 2020. As ofDecember 31. 2021, it is desired to distribute $270,000 in dividends. Instructions:How much will the preferred and common stockholders receive under eachof the following assumptions: 1. The preferred is noncumulative and nonparticipating. 2. The preferred is cumulative and nonparticipating. 3. The preferred is noncumulative and fully participating. 4. The preferred is cumulative and fully participating. 5. The preferred is cumulative and participating to 7% total.
Remington, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018. As of December 31, 2019, it is desired to distribute $270,000 in dividends. Can you please explain how much will the preferred and common stockholders receive under each of the following assumptions: (a) The preferred is noncumulative and nonparticipating. (b) The preferred is cumulative and nonparticipating.
The NiceWay Corporation's statement of financial position shows the total stockholders' equity of P5,000,000 as of December 31, 2019. Required: Compute the book value per share of each class of share capital under each of the following independent assumptions: 1. The company has only one class of shares outstanding: 200,000 ordinary shares, par value P15. 2. The company has two classes of shares outstanding: 10,000 shares of P100 par preference share capital with liquidation value of P120 per share and 100,000 shares of P15 par ordinary share capital.
Manner, Inc. has 5,000 shares of 6%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2017. The board of directors declares and pays a $55,000 dividend in 2018. What is the amount of dividends received by the common stockholders in 2018? Note: show calculation. Essay Toolbar navigation I U
Rick Co. had 35 million shares of $2 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Directors declared and distributed a 2% common stock dividend when the market value of its common stock was $67 per share. In recording this transaction, Rick would: Multiple Choice None of these answer choices are correct. Credit common stock for $46.90 million. Debit retained earnings for $46.90 million. Credit paid-in capital—excess of par for $46.90 million.
Palestine Corporation has $800,000 of 6% preferred stock, and $3,200,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2019 and 2020. As of 12/31/21, it is desired to distribute $360,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and participating up to 11% in total?
On December 31, 2023, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2024, the company sold 19,000 additional shares for cash. Bennett's net income for the year ended December 31, 2024, was $610,000. During 2024, Bennett declared and paid $75,000 in cash dividends on its nonconvertible preferred stock. What is the 2024 basic earnings per share? Multiple Choice O O O $5.10 $4.86 $4.48 None of these answer choices are correct.