A portion of the stockholders' equity section from the balance sheet of Spence Corporation appears as follows. Notice that thecompany has two classes of preferred stock with different features, in addition to common stock.Stockholders' equity:Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, and outstandingPreferred stock, 12% noncumulative, $100 par, 5,300 shares authorized, issued, and outstandingCommon stock, $5 par, 310,000 shares authorized, issued, and outstandingTotal paid-in capital.Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During thethird year, Spence paid total cash dividends of $736,000.Required:a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock.b. Compute the dividends paid per share during the third year for each of the three classes of stock.Note: Round your answers to 2 decimal places.c. What was the average issue price of each type of preferred stock?a. Cumulative preferred stocka. Noncumulative preferred stocka. Common stockb. Cumulative preferred stockb. Noncumulative preferred stockb. Common stockc. Cumulative preferred stockc. Noncumulative preferred stock$ 1,700,000530,0001,550,000$ 3,780,000per shareper shareper shareper shareper share

A dividend is the portion of profits and retained earnings that a business gives to its owners and…

Answered: A portion of the stockholders' equity…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.1E

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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows. Notice that the company has two classes of preferred stock with different features, in addition to common stock. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 31,000 shares authorized, issued, and outstanding Preferred stock, 12% noncumulative, $100 par, 5,700 shares authorized, issued, and outstanding Common stock, $5 par, 360,000 shares authorized, issued, and outstanding Total paid-in capital Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000. a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock. b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers to 2 decimal places.) c. What was the…
A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows. Notice that the company has two classes of preferred stock with different features, in addition to common stock. stockholders' equity: Preferred stock, 9% cumulative, $50 par, 32,000 shares authorized, issued, and outstanding Preferred stock, 12% noncumulative, $100 par, 5,800 shares authorized, issued, and outstanding Common stock, $5 par, 370,000 shares authorized, issued, and outstanding Total paid-in capital $1,600,000 580,000 1,850,000 $4,030,000 Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000. a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock. b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers…
[The following information applies to the questions displayed below.] The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) (Sand shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained 5,800 28,000 1,028,600 1,062,400 286,000 (360,000) 988,400 rnings Treasury stock, 12,000 common shares Total stockholders' equity Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands. Problem 10-4A Part 5 5. What was the average cost per share of the treasury stock acquired? Average cost per share
The market price of a share of common stock at the time of issuance was $19.50, while the market price of a preferred share of stock at the time of issuance was $29.00. The company paid $14.00 per share for its treasury stock. Required: Determine the missing amount in the stockholders' equity section of the balance sheet set forth below. (Input all amounts as positive values.) Stockholders' Equity Contributed Capital: Preferred Stock, $2 par value, authorized 1,000,000 shares; issued 675,000 shares Additional Paid-in Capital - Preferred Stock Common Stock, $3 par value, authorized 40,000,000 shares; issued 19,000,000 shares Additional Paid-in Capital - Common Stock Total Contributed Capital Retained Earnings Treasury Stock, at Cost (10,000 shares) Total Stockholders' Equity 207,483,000
A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 34,000 shares authorized, issued, andoutstanding $ 1,700,000 Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, andoutstanding 540,000 Common stock, $5 par, 490,000 shares authorized, issued, and outstanding 2,450,000 Total paid-in capital $ 4,690,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid during the first two years of operation. During the third year, Walland Corporation paid total cash dividends of $736,000. a. Compute the amount of cash dividends paid during the third year to each of the three classes of stock. b. Compute the dividends paid per share during the third year for each of the three classes of stock. (Round your answers to 2 decimal places.) c. What was the average issue…
[The following information applies to the questions displayed below.] The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial) (S and shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings 5,800 28,000 1,028,600 1,062,400 286,000 (360,000) $ 988,400 Treasury stock, 12,000 common shares Total stockholders equity Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands Problem 10-4A Part 4 4. If retained earnings at the beginning of the period was $248 million and $28 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.., 5,000,000 should be entered as 5).) Net income million
The stockholders' equity section of Rakusin Corp. reflected the following in the capital stock subsection (all stock was issued on the same date): Common stock, par $10 $60,000 Additional paid-in-capital 15,000 What was the per-share selling price of the stock? $ _________
Common stock is the only class of stock outstanding in Manley Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called book value per share. fair value per share. stated value per share. ☐ par value per share. eTextbook and Media
The shares of stock sold to investors are Select one: a. Treasury shares. b. Authorized shares. c. Issued shares. d. Outstanding shares. A firm that sold one share of $1 par value common stock for $10 would Select one: a. Debit common stock for $1. b. Debit common stock for $10. c. Credit common stock for $1. d. Credit common stock for $10. For a bond issued at par, the cash received upon issue equals the present value of the bond’s Select one: a. Principal repayment minus the interest payments. b. Principal repayment and interest payments. c. Principal repayment. d. Interest payments.
Required information [The following information applies to the questions displayed below.] Raphael Corporation's balance sheet shows the following stockholders' equity section. Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity Required: 1. Determine the par values of the corporation's preferred stock and its common stock. $ 50,000 80,000 150,000 $ 280,000
The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows: CREIGHTON COMPANY As of December 31, Year 3 Stockholders’ equity Preferred stock, $10 stated value, 7% cumulative,300 shares authorized, 50 issued and outstanding $ 500 Common stock, $10 par value, 250 shares authorized,100 issued and outstanding 1,000 Common stock, class B, $20 par value, 400 sharesauthorized, 150 issued and outstanding 3,000 Common stock, no par, 150 shares authorized,100 issued and outstanding 2,200 Paid-in capital in excess of stated value—preferred 600 Paid-in capital in excess of par value—common 1,200 Paid-in capital in excess of par value—class B common 750 Retained earnings 7,000 Total stockholders’ equity $ 16,250 Requireda. Assuming the preferred stock was originally issued for cash, determine the amount of cash collected when the stock was issued.b. Based on the class B common stock alone,…

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