Crane Company has 10,000 shares of 7%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021. If Crane wants to pay $360,000 of dividends in 2022, what amount of dividends will common stockholders receive? Dividends allocated to common stock $
Q: c) The preferred stock is noncumulative and is participating in distributions in excess of a 9%…
A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…
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A: Cumulative preferred stock is that stock on which dividends are accumulated if not paid in a…
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A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
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A: A dividend represents the distribution of profit among the shareholders.
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A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: ABC Inc had 10,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value…
A: Solution: Annual preferred dividends = 10000*$20*6% = $12,000 Amount of dividend received by…
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A: From the profit earned by the business entity, some of the profit is distributed by the business…
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A: Answer a: The preferred stock is cumulative and fully participating: Annual Dividend of preferred…
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A: A cumulative preferred stock implies that a preferred stockholder is entitled to receive dividends…
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A: Formulas:
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A: A cumulative preferred stock implies that a preferred stockholder is entitled to receive dividends…
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A:
Q: Marion, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares…
A: Annual Preferred Dividend = 5,000 shares x $100 x 5% = $25,000 Preferred dividends are given as…
Q: Nathan's Athletic Apparel has 1,100 shares of 5%, $100 par value preferred stock the company issued…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Wildhorse Company’s ledger shows the following balances on December 31, 2020. 7% Preferred…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Vaughn, Inc. has 11300 shares of 8%, $100 par value, cumulative preferred stock and 113000 shares of…
A: Given that: Number of preferred shares = 11300 shares Par value per share = $100 Dividend rate = 8%…
Q: Adam's Athletic Apparel has 1,600 shares of 5%, $100 par value preferred stock the company issued at…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
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A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
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A: Definition: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred…
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A: EPS termed as Earnings per share which refers to the monetary value of the earnings per outstanding…
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A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A: Calculation of Weighted average number of common shares outstanding: Months No. of months…
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A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Dividend on cumulative preference share =30000 share×$50×7%=$105000
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A: Compute the numerator: Net loss ($140) Preferred stock dividend (20 x 100 x 8%) ($160) Total…
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A: Given, Total Dividend = $375,000 Annual Preferred Dividend = 10,000 * $100 * 8% = $80,000
Q: Windsor Corporation issued 119,000 shares of $19 par value, cumulative, 9% preferred stock on…
A: cumulative preference shares: there type of shares where if dividend is not declared in first year…
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A: Basic EPS = Net income (-) preferred dividend / common shares Preferred dividend = 5000 shares *…
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Q: (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders…
A: Solution are as follows
Q: Splish Brothers Inc. has 10,800 shares of 8%, $100 par value, cumulative preferred stock outstanding…
A: Determine the amount of preferred dividend to be paid each year.
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Given information, On December 31, 2020: Common stock outstanding = 100,000 7%, $50 par, Cumulative…
Q: Bration has outstanding 9,600 shares of $100 par value, 6% preferred stock and 57,000 shares of $10…
A: In case of noncumulative preference shares the Dividend which is in arrears will not be paid to…
Q: Nathan's Athletic Apparel has 1,100 shares of 6%, $100 par value preferred stock the company issued…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Waterway, Inc. has 2700 shares of 4%, $50 par value, cumulative preferred stock and 54000 shares of…
A: Dividends are paid first to preferred stockholders and the remaining balance is paid to common…
Q: Marigold, Inc. has 10500 shares of 4%, $100 par value, noncumulative preferred stock and 105000…
A: A dividend is the transfer of a portion of a company's earnings to a certain group of shareholders,…
Q: On January 1, 2021, Sue Company had 3,000,000 shares of its common stock issued and outstanding. Sue…
A: Earnings per share are the earnings of the shareholders on each share purchased. The earnings per…
Q: Sunland, Inc. has 26400 shares of 6%, $100 par value, noncumulative preferred stock and 48300 shares…
A: Non-cumulative preference share can be defined as that type of preference share which pays dividend…
Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Pharoah corporation issued $117000 shares of $19 par value cumulative, 7% preferred stock on…
A: Date Account title Debit Credit Cash $ 2,530,000 Preferred stock $ 2,223,000…
Q: McNabb Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value…
A: a.
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Basic EPS and diluted EPS is calculated to measure the earnings of common stockholders on their…
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A: Preference shareholders will be paid dividend first and balance amount will be paid to equity…
Q: Bramble, Inc. has 11800 shares of 5%, $100 par value, noncumulative preferred stock and 236000…
A: The common stockholders get the dividend after the dividend is paid to preferred stockholders.
Q: Whispering Corporation has 8,700 shares of $100 par value, 9%, preferred stock and 48,300 shares of…
A: Formula: Preferred dividend = Preferred shares x PAR value x Preferred rate
Q: Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on…
A: Annual preferred dividend = 104,000 shares x $19 x 9% = $177,840
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A: The preferred stockholders get the dividend before the dividend is paid to common stockholders.
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A: Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its…
Q: On December 31, 2020, Berclair Inc. had 225 million shares of common stock and 4 million shares of…
A: Earning Per Share (EPS): Net profit divided by the number of common shares issued and outstanding is…
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- Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholdersHyde 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.
- Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.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.
- 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?Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.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?
