Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the OzarkMountain regions. The following disclosure note appeared in the company's 2018 annual report:E 18-8Reportingpreferred shares• LO18-4, LO18–7Note 5. Convertible Preferred Stock (in part):The Company has the following Convertible Preferred Stock outstanding as of September 2018:Date of issuance:June 17, 2015Optionally redeemable beginning:Par value (gross proceeds):Number of shares:June 18, 2017$2,500,000Liquidation preference per share:Conversion price per share:Number of common shares in which to be100,000$25.00$30.31converted:82,481Dividendrate:6.785%The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark'scommon stock equal to the number of preferred shares being converted times a fraction equalto $25.00 divided by the conversion price. The conversion prices for the Preferred Stock aresubject to customary adjustments in the event of stock splits, stock dividends and certain otherdistributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable inarrears, when, as, and if declared by the Board of Directors, on March 31, June 30, September30, and December 31 of each year.The Preferred Stock is optionally redeemable by the Company beginning on various dates, aslisted above, at redemption prices equal to 112% of the liquidation preference. The redemptionprices decrease 1% annually thereafter until the redemption price equals the liquidationpreference, after which date it remains the liquidation preference.Required:1. What amount of dividends is paid annually to a preferred shareholder owning 100 shares of the Series A pre-ferred stock?2. If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the share-holder receive?3. If the investor chooses to convert the shares in 2019, how many shares of common stock will the investorreceive for his/her 100 shares?4. If Ozark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for his/her100 shares?

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Required: 1. What amount of dividends is paid annually to a preferred sharcholder owning 100 shares of the Series A pre- ferred stock? 2. If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the share- holder receive? 3. If the investor chooses to convert the shares in 2019, how many shares of common stock will the investor receive for his/her 100 shares? 4. IfOzark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for hisher 100 shares?

Required: 1. What amount of dividends is paid annually to a preferred sharcholder owning 100 shares of the Series A pre- ferred stock? 2. If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the share- holder receive? 3. If the investor chooses to convert the shares in 2019, how many shares of common stock will the investor receive for his/her 100 shares? 4. IfOzark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for hisher 100 shares?

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 24P: Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1....

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Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2021 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2021: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted: Dividend rate: June 17, 2018 June 18, 2020 $1,200,000 120,000 $ 10 13.26 90,497 6.690% The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $10 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends…
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company’s 2021 annual report: Note 5. Convertible Preferred Stock (in part):The Company has the following Convertible Preferred Stock outstanding as of September 2021: Date of issuance: June 17, 2018 Optionally redeemable beginning: June 18, 2020 Par value (gross proceeds): $ 2,500,000 Number of shares: 100,000 Liquidation preference per share: $ 25.00 Conversion price per share: $ 30.31 Number of common shares in which to be converted: 82,481 Dividend rate: 6.785 % The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark’s common stock equal to the number of preferred shares being converted times a fraction equal to $25.00 divided by the conversion price. The conversion prices for the Preferred Stock are subject to…
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
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ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
Integrity Company is a publicly held company whose shares are traded in the over-the-counter market. The shareholders’ equity accounts at December 31, 2021 had the following balances (see image below).Transactions during 2022 and other information relating to shareholders’ equity accounts were as follows: February 1: Issued 30,000 ordinary shares to AAA Company in exchange for a piece of land. On this date, the ordinary share had a market price of P20 per share. The land had a carrying value on AAA's books of P420,000 and an assessed value for property taxes of P400,000. March 1: Purchased 5,000 of its own ordinary shares to be held as treasury for P24 per share. May 10: Declared property dividend (equity investments at fair value through profit or loss) to ordinary shareholders. The investments had a carrying amount of P600,000 as of December 31, 2021 and fair values were P720,000 on May 10, 2021 (declaration date) and P736,000 on June 1, 2022 (distribution date). October 1: Reissued…
The shareholders' equity section of De Guzman Company revealed the followinginformation on Dc. 31, 2019: Preference Shares, P100 par P2,300,000Share Premium-Preference 805,000Ordinary Shares, P15 par 5,250,000Share Premium-Ordinary 2,750,000Subscribed Ordinary Shares 50,000Retained Earnings 1,900,000Notes Payable 4,000,000Subscription Receivable-Ordinary 400,000 Required: How much is the legal capital?
(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: 2020 2019 Preferred shares classified as equity $145,000 $145,000 Common shares: 9,000 shares in 2020, 10,000 shares in 2019 142,000 160,000 Contributed surplus—reacquisition of common shares 3,500 –0– Cash dividends—preferred 6,250 6,250 Stock dividends—common 14,000 –0– Retained earnings (balance after closing entries) 300,000 240,000 At December 31, 2020, the following information is available: Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000.During 2020, 1,000 common shares were issued as a stock dividend.Mandrich…
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