A corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained earnings account at the beginning of the current fiscal year. Although net income for the current year is sufficient to pay the preferred dividend of $150,000 each quarter and a common dividend of $90,000 each quarter, the board of directors declares dividends only on the preferred stock. Suggest possible reasons for not paying dividends on the common stock

Q: The Maria Incorporated was established in 2018. The Corporation issued 100,000, ₱20 par value shares…

A: Solution:  Statement of Changes in Equity of Maria Incorporated for the year 2019 is as under:

Q: a) During the year, the corporation completed a number of transactions affecting the stockholders'…

A: Journal entry: It is a book of prime entry or a book of original entry in which transactions are…

Q: Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd.…

A: Solution:- Preparation of the journal entries as follows under:- Note:- Error in accounting entry…

Q: Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in…

A: Prepare journal entries:

Q: Required information [The following information applies to the questions displayed below.] Year 1…

A: Cumulative Preferred Dividend - Cumulative Preferred Shares are those shares who get preference for…

Q: Crane Corporation has 12.50 million shares of common stock issued and outstanding. On June 1, the…

A: Entries to record dividend, if the dividend represents a distribution of earnings.

Q: Disraeli Corporation has 10,000 shares of 10%, $100 par value, cumulative preferred stock…

A: Dividend to common stockholders = 50000 shares x $1.50 per share = $75,000 Dividend to Preferred…

Q: A corporation has 4,000 shares of 10% noncumulative non participating preference shares outstanding,…

A: Preferred shares are nonparticipating means they will receive only pre fixed dividend. Noncumulative…

Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 4,500 shares of…

A: Dividend: Dividend is distributed to Share holders of the company. Share holders are the real owners…

Q: Axle Corporation had 800,000 shares of common stock issued and outstanding at January 1. No commons…

A: Diluted Earning Per Share: The diluted earnings per share (diluted EPS) of a corporation is…

Q: When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48…

A: Dividend Arrearage = Preference Share amount per share * No. of share preference shares issued *…

Q: Before preparing financial statements for the current year, the chief accountant for Crane Ltd.…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Ashkenazi Companies has the following stockholders' equity account: Common stock (372,123 shares at…

A: Given: Common stock = $1116369 Paid in capital in excess of par = $2589742 Retained Earnings =…

Q: Yossarian Corporation has a single class of common stock and a single class of cumulative preferred…

A: Stock (Common stock and preferred stock): These are the two types of share capital of the company.…

Q: Chicago Company reported the following information at the end of the current year:         Common…

A: The dividend can be paid to the shareholders from the retained earnings of the business. The…

Q: A corporation has 43,671 shares of $32 par stock outstanding that has a current market value of $300…

A: Market capitalization refers as the total valuation of a company constructed on its present share…

Q: The following note related to stockholders’ equity was reported in Wiebold, Inc.'s annual report.…

A: a.

Q: The outstanding capital stock of Vaughn Corporation consists of 2,100 shares of $100 par value, 7%…

A: Working Note:

Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 4,100 shares of…

A: Common stock means the outstanding share of the company in which the investor invested their money…

Q: On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock…

A: Stock dividends: Stock dividends are the number of shares issued by a company to the existing…

Q: An annual report of Ford Motor Corporation states, “Net income a share is computed based upon the…

A: Given information is: An annual report of Ford Motor Corporation states, “Net income a share is…

Q: A corporation has the following account balances: Common Stock, $1 par value, $60000; Paid-in…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for long…

Q: A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it…

A: Authorized shares are the maximum number of shares a company is allowed to issue to shareholders as…

Q: The board of directors of KALEIDOSCOPE Corporation has declared cash dividends of ₱30,000 to its…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the…

A: Error in accounting entry can be corrected by either reversing entry which is incorrect and entering…

Q: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…

A: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…

Q: what is the market capitalization of the corporation

A: Market capitalization is known as the market value of all the shares issued in the market. It is…

Q: Fark Tart Limited was a corporation that made hair growth stimulants.  The company had 425,000…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: The following information is taken from the current year financial statement of EC (dollar figures…

A: Loss from continuing operations: It refers to the loss incurred from ongoing business, it can be…

Q: Monty Inc. has 5,400,000 shares of common stock issued and outstanding. On April 1, the board of…

A:

Q: Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Copley Corporation is preparing their financial statements for the year ending February 28, 2022.…

A: Introduction Earning per Share (EPS) is the profit per outstanding share, it can be calculated as…

Q: A corporation with both preferred stock and common stock outstanding has a substantial credit…

A: Dividend is the payment made to the shareholders as a return on the money invested by them in the…

Q: A company has 1,000 shares of $50 par value, 4.5% cumulative and nonparticipating preferred stock…

A: Paid in capital stock which was in common consist of preferred and common stock in total and it was…

Q: A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of…

A: In finance stockholders equity is the balance or the remaining amount of assets that are available…

Q: A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in…

A: Legal capital = $80,000

Q: Copley Corporation is preparing their financial statements for the year ending February 28, 2022.…

A: Diluted EPS refers to the addition of securities to the basic EPS which arises if the potential…

Q: A corporation has 10,000 shares of 7%, $50 par preferred stock outstanding and 130,000 shares of…

A: Formula : Preferred dividend = Number of shares outstanding x Preferred dividend rate x Par value.

Q: Bigelow Corporation has total assets of $850,000, sales of $1,350,000, and one class of common stock…

A: The Anti-Fraud Provision of SEA,1934 applies to Bigelow. The company is subjected to Section 10(b)…

Q: On January 1st, 2021, Bayshore Boats, Inc. had 30,000 shares of common stock outstanding. On…

A: Number of shares issued on stock split = ( 30,000 + 10,000 + 8,000 ) x 4 = 192,000 shares

Q: Wheaton Tire Inc., [WTI] reported the following excerpts from shareholders’ equity on January 1,…

A: Dividend is the amount to be paid by the company out of profit made to the shareholder's of the…

Q: However, now assume that for this question only that the preferred shares were cumulative and…

A: Preferred Shareholders dividend for 2019 not Paid before = 300,000 x 0.90 =270,000 Preferred…

Q: A corporation issues common stock with a $5 stated value. Its Common Stock account has a balance of…

A: Here stated value is the Nominal value or par value at which shares are issued.  Number of shares…

Q: Ricci Corporation is preparing their financial statements for the year ending September 30, 2021.…

A: Correct option is b. No, do not include the preferred dividends in the calculation of EPS

Q: What is the earnings per share?

A: Calculate earnings available to common stockholders: Earnings available to common stockholders = Net…

Q: Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with…

A: Formula: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value…

Q: Wheaton Tire Inc., [WTI] reported the following excerpts from shareholders’ equity on January 1,…

A: Dividend - Dividend is the amount to be paid the shareholders out of the profit made by the company.

Q: Please answer in good accounting form. Thankyou During 2021, CAPTAIN AMERICA Company had two…

A: The basic earnings per share is calculated as net income available to common shareholders divided by…