12. In 2024 a company has 2,300,000 outstanding shares of its 1 par value common stockoutstanding. The company also has 20,000 shares of 5% $10 noncumulative preferred stockoutstanding. The company paid no dividend in 2022 and 2023. If the company declares a 5.60per share dividend, how much will go to the preferred shareholders and how much will go thecommon shareholders?13. A company issues a $15,000,000 bond with a price of 102.3. Write the entry to record thebond.14. Write the entry if the company in # 13 above sold the bond at a price of 94.3.15. A company issued $10,000,000 bonds with a rate of 7% for 15 years. If the company recorded a$350,000 discount when they issued the bonds and they pay interest semi-annually, write theentry to record the six month interest payment.

12. To calculate the dividend distribution for preferred and common shareholders, we'll follow these…

Answered: 12. In 2024 a company has 2,300,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 15Q: According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its...

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According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
Suppose a corporation has the following shares outstanding: 1. $800,000 in 6% Preferred Stock ($100 par value) 2. $3,200,000 in Common Stock ($10 par value) No dividends were declared for the years 2020 and 2021. Two scenarios are presented below and each is independent of each other. Scenario 1: As of December 31, 2022, a dividend of $250,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating (cumulative and non-participating). Answer: Scenario 2: As of December 31, 2022, a dividend of $800,000 is declared. Indicate the amount that the preferred shareholders will receive if the share is cumulative and non-participating up to 11% in total (cumulative and non-participating). Answer:
1. On December 31, 2021 and 2020, Go Company had 100,000 ordinary shares and 10,000 cumulative preference shares of 6%, P100 par value. No dividends were declared on either the preference or ordinary share in 2021 or 2020. Net income for the current year was P800,000. What amount should be reported as basic earnings per share? a. 7.40 b. 8.50 c. 7.50 d. 7.90 2. JAX Company had 200,000 ordinary shares of P20 par value and 20,000 shares of P100 par, 6% cumulative, convertible preference share capital outstanding for the entire year ended December 31, 2021. Each preference share is convertible into 4 ordinary shares. The net income for 2021 was P840,000. What amount should be reported as diluted earnings per share? a. 2.80 b. 1.90 c. 3.00 d. 3.20 3. Laura Company carried a provision of P2,000,000 in the draft financial statements on December 31, 2021 in relation to an unresolved court case. On January 31, 2022, when the financial statements on December 31, 2021 had not yet been authorized…
. List the types of dividends. Why do companies or investors have a preference for one or the other? 6. Martinez Ltd. has the following equity accounts at January 1, 2020. • Preferred shares outstanding: 2,500 shares $ 62,500 • Common shares outstanding: 4,000 shares 400,000 (a) What was the average issue price of the preferred shares? (b) Of the common shares? (c) If the preferred shares pay a dividend of $1 per share and are participating, what is the per share dividend that would be allocated to the common shares before any additional dividend would be paid to preferred shareholders for participation?
2. HAWKEYE Corporation has the following shareholders' equity accounts as of December 31, 2021: 6% Preference shares, P10 par - P200,000; Ordinary shares, P10 par - P300,000; Accumulated profits - P80,000. Dividends have not been declared for the years 2019 to 2021. The whole amount of the accumulated profits of P80,000 was declared gs dividend on December 31, 2021. How much dividend per share shall an ordinary shareholder have if the preference share is cumulative and participating up to 21%? (Present your answer for this problem in 2 decimal places, example X.XX) *
Skysong Company has 23,000 shares of $1 par common stock issued and outstanding. The company also has 2,300 shares of $100 par 3% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2018 or 2019. What amount of dividends must the company pay the preferred shareholders in 2020 if they wish to pay the common stockholders a dividend? Amount of dividend?
(b) i Total dividends Crane, Ltd. has 11,000 outstanding no par value $1.00 preferred shares issued for $110,000 and 35,000 outstanding no par value common shares issued for $21,000. No dividends were paid or declared during 2023 and 2024. Crane wants to distribute $42,960 in dividends on December 31, 2025. (a) Save for Later Your answer is correct. Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Total dividends $ eTextbook and Media Accessibility: Investigate Preferred Calculate the amount of dividends to be paid to each group of shareholders (i.e., preferred and common), assuming the preferred shares are cumulative and non-participating. Preferred 11000 tA $ Common 31960 Common Attempts: 0 of 2 used Submit Answer Foc
I could use some help with this question: Egyptian Enterprises has both common and preferred stock. There are 80,000 shares of $1 par common stock outstanding and 4,000 shares of $9 par, 9% cumulative preferred stock outstanding. The company did not pay any dividends in 2018. Distribute dividends to each class of stockholders using the following information: Year Dividends Declared 2019 $5,500 2020 $5,500 2021 $5,000 Year Preferred Common 2019 2020 2021
3. Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears. - 200,000 ordinary shares, par value P1. On December 31, 2019, the entity declared dividends of P100,000. How much is the dividends per share for he Preference Shares? a. P2.00 b. P0.50 c. P1.50 d. P0.20
Information for.DRour (4).Questions. Spencer, Inc., has par value of P10 per share. No dividends have been paid or declared during 2019 and 2020. As of December 31, 2021, it is desired to distribute P500,000 in dividends. How much will the preference and ordinary shareholders receive under each of the following assumptions: of 8% preference shares and P1,200,000 of ordinary shares outstanding, each having a 21. The preferred is noncumulative and nonparticipating. 22. The preferred is cumulative and nonparticipating. 23. The preferred is cumulative and fully participating. 24. The preferred is cumulative and participating to 12% total.
Lord Aguilar Corp. plans to declare and distribute a dividend in December 2018. There are 20,000 shares of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. 1. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P100,000? 2. What is the total amount of dividends to be paid to preference shareholders if it is cumulative and nonparticipating and the dividend declared is P100,000? 3. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P168,000?
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 i. Preference shares are cumulative ii. Preference shares are non-cumulative, dividends has been declared by the BOD iii. Preference shares are non-cumulative, no dividend has been declared by the BOD c. Same as letter b but with additional information with regards to the issuance of ordinary shares Jan 1 Beginning Balance 60,000 shares May 1 Additional Isuance 20,000 shares Aug 1 Additional Isuance 20,000 shares Nov 1 Additional Isuance 30,000 shares

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