FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A portion of the
| Stockholders' equity: | |||
outstanding |
$ | 1,700,000 | |
| Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding |
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 price of each type of preferred stock?
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, and outstanding |
$ | 1,700,000 | |
| Preferred stock, 12% noncumulative, $100 par, 5,400 shares authorized, issued, and outstanding |
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 price of each type of preferred stock?
| a. | Cumulative Preffered Stock | ||
| Non-Cum Preffered Stock | |||
| Common Stock | |||
| b. | Cumulative Preffered Stock | per share | |
| Non-Cum Preffered Stock | per share | ||
| Common Stock | per share | ||
| c. | Cumulative Preffered Stock | per share | |
| Non-Cum Preffered Stock | per share |
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