The ABC Co. has outstanding 100000 shares of 7% Cumulative Preferred Stock, At $10 Par Value. No dividends were paid in 2016 and 2017. The Board of Directors declared total dividends of $300000 in 2018. Required: Calculate the amount of dividends by year that should be paid to To Preferred shareholders and Common Shareholders.
Q: Merchandise subject to terms 2/10, r/30, FOB shipping point, is sold on account to a customer for…
A: Credit terms specify payment conditions, like discounts for early payment (e.g., 2/10, net 30).FOB…
Q: What are the 3 main differences between Chinese GAAP and Indonesian GAAP?
A: GAAP stands for 'Generally Accepted Accounting Principles'. GAAP is a set of guidelines that…
Q: Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For…
A: Lets understand the basics.The overhead is applied to the production on the basis of a…
Q: Sales (22,200 units) Variable expenses Contribution margin. Fixed expenses Net operating income.…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Journalize the entries for the following summarized operations related to production for a company…
A: A journal is a booklet in which transactions are chronologically documented. It is also known as the…
Q: January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans…
A: Cash Payment Schedule :— This budget is prepared to estimate the cash payment for expenses during…
Q: On December 31, 2018, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2019. L…
A: The "current liabilities section" on a balance sheet is a specific financial statement category that…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Management has requested that you do the following: Prepare a traditional income statement. Prepare…
A: Traditional income statement is a formal presentation of the profit or loss from the operation. In…
Q: he following unadjusted balances of Beta Company are presented at August 31, 2023: Dr. Cr.…
A: Bad Debt Expenses is a ledger that represents uncollectible accounts written off during the year.…
Q: A company using the periodic inventory system has merchandise inventory costing $269 $783 is…
A: "Cost of Merchandise Inventory Sold" indicates the entire value of inventory goods sold to customers…
Q: The adjusted trial balance for Novak Bowling Alley at December 31, 2022, contains the following…
A: Balance Sheet :— It is one of the financial statements that shows list of final balances of assets,…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: Revenue recognition matches with project progress using the percentage of completion technique. It…
Q: Mr. King is disposing of a property which he bought for $5,000,000. The selling price is $3,000,000.…
A: A capital gain/loss arises when a capital asset is sold or disposed of. It is the difference between…
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per…
A: · CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: During the month of January, the following transactions were completed: a. Raw materials were…
A: The adjusted cost of goods sold is required to be computed when there is under-applied or…
Q: b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: Cash…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…
Q: In preparing a bank reconciliation, WHT IS THE PROPER TREATMENT OF A DEPOSIT IN TRANSIT? Subtract…
A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…
Q: Data for Hermann Corporation are shown below: Percent of Sales 100% 64 36% Selling price Variable…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Exercise 6-10 (Algo) Multiproduct Break-Even Analysis [LO6-9] Lucido Products markets two computer…
A: The break-even sales are the sales where business earns no profit or loss during the period. The…
Q: Required information Problem 7-35 (LO 7-1) (Algo) [The following information applies to the…
A: Investments are made to earn interest. When the amount invested in the bonds is more than the face…
Q: Below are estimates related to Sando's 2022 budget, a company that specializes in crafting unique…
A: CVP analysis, or cost-volume-profit analysis, is a management accounting technique used to analyze…
Q: Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers…
A: Merchandise purchases budget is the financial plan that records the total cost or units of the…
Q: he trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31,…
A: Gross profit:- sales- cost of goods soldcomprehensive income =$539,250
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: Contribution margin is the difference between contribution margin and fixed expenses. It is also…
Q: Answer the following questions related to depreciation expense calculation. Be sure to read each…
A: Since you have posted multiple questions, we will do the first one for you. Please post the other…
Q: Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing…
A: The predetermined overhead rate is calculated as the estimated overhead costs divided by the…
Q: On March 1, 2024, Gold Examiner receives $150,000 from a local bank and promises to deliver 95 units…
A: Revenue is recognized under the accounting principle of revenue recognition. As per the revenue…
Q: The following transactions were selected from among those completed by Bennett Retailers in November…
A: Cash discount is the discount offered to a customer for making early payment. Contra revenue…
Q: At a volume of 5,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including…
A: Variable costs are those costs which change with change in activity level. FIxed costs do not change…
Q: Dion, an S shareholder, owned 20% of Meadow Brook's stock for 292 days and 25% for the remaining 73…
A: A stock is a type of security that denotes a small percentage of ownership in a business. Buying…
Q: The budgeted production of World, Inc. is 140,000 units per month. Each unit requires 36 minutes of…
A: The amount of cost incurred by the entity on the payment of wages to the laborers directly involved…
Q: An analyst wants to compare one firm's level of inventory last year to a competitor firm's level c…
A: Common-size Statements are accounting statements expressed in percentage of some base figure. It…
Q: Exercise 6-63 (Algorithmic) Inventory Costing Methods: Periodic Inventory System (Appendices 68) The…
A: The various methods for inventory valuation are FIFO, LIFO and average method. FIFO stands for First…
Q: K t aces During 2022, Roberto sold 700 shares of Casual Investor Mutual fund for $8.05 per share.…
A: A mutual fund is the pooling of money from the investors to purchase securities to invest in bonds,…
Q: Which of the following are includible in gross income? OA) Dividends from a corporation that has no…
A: Gross income is the total income a person or entity receives before any deductions, such as taxes or…
Q: Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as…
A: Consolidated financial statements includes income statement, balance sheet, cash flow statement.…
Q: Luxury Motors has 7,400 defective autos on hand, which cost $13,616,000 to manufacture, Luxury can…
A: Net advantage is the amount of difference between two different options of the entity. It helps to…
Q: uestions below. Show your work. $5000 must be earned in addition to the fixed costs, what must the…
A: To calculate the average check , break even calculation ofcost volume analysis is applied. In break…
Q: The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted…
A: Overhead: It represents the indirect costs incurred in production, such as utilities and rent, which…
Q: This information relates to Blossom Co. 1. 2. 3. 4. On April 5, purchased merchandise from Crane…
A: The accounting equation is a mathematical representation of financial transactions. The accounting…
Q: $5,632,000. The plane has an estimated us hornton flew two trips. The first trip was a rou nd $260…
A: For cost allocation, budgeting, and pricing choices, the distinction between direct and indirect…
Q: Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: Jocelyn and Esteban file a joint return. For the current year, they had the following items:…
A: AGI typically stands for "Adjusted Gross Income." It is a key financial metric used in personal…
Q: On January 1,2022, Ace Company finished landscaping services and accepted in exchange a 5% $400000…
A: Note receivable is a financial instrument which acts as a promise to pay a certain sum of money on a…
Q: Metalcrafts Inc. Selected information from the company's financial records is presented below:…
A: Cash proceeds from sale of equipment is the amount of cash received from equipment sold during the…
Q: Using the following data, apply the high-low method of cost analysis to the three cost data groups:…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…
Q: 1. Explain what are the differences if accrual or cash accounting is used to account for the…
A: Accrual Accounting:Recognition of Revenue: Under accrual accounting, revenue is recognized when it…
Q: ! Required information [The following information applies to the questions displayed below.] Vista…
A: Budgeting seems to be the procedure of forecasting income and spending over a set span of the period…
Q: CES art Do It! Review 5-02 Your answer is partially correct. Try again. On October 5, Kingbird, Inc.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
. Cash dividend pay-out to Cumulative
The ABC Co. has outstanding 100000 shares of 7% Cumulative Preferred Stock,
At $10 Par Value. No dividends were paid in 2016 and 2017. The Board of
Directors declared total dividends of $300000 in 2018.
Required: Calculate the amount of dividends by year that should be paid to
To Preferred shareholders and Common Shareholders.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- 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?Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.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?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
- 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. 6.73Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.
