Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital—preferred stock 60,000 Additional paid-in capital—common stock 17,150,000 Retained earnings 49,005,689 Total stockholders' equity $76,915,689 The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $400,000 April 15, 2019 Declare and pay common dividends of $1.30 per share October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $140 per share. March 1, 2020 Declare and pay common dividends of $0.50 per share (a) Use the financial statement effects template to indicate the effects of these separate transactions. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Apr. 15 Answer Answer Answer Answer Answer Apr. 15 Answer Answer Answer Answer Answer Oct. 1 Answer Answer Answer Answer Answer Mar. 1 Answer Answer Answer Answer Answer Income Statement Revenue - Expenses = Net Income Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. $Answer PreviousSave AnswersFinish attempt ...

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...

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Identifying and Analyzing Financial Statement Effects of Dividends
The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below.

4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding	$10,000,000
Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding	700,000
Additional paid-in capital—preferred stock	60,000
Additional paid-in capital—common stock	17,150,000
Retained earnings	49,005,689
Total stockholders' equity	$76,915,689

The following transactions, among others, occurred during the fiscal year ended March 31, 2020.
April 15, 2019 Declare and pay preferred dividends of $400,000
April 15, 2019 Declare and pay common dividends of $1.30 per share
October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $140 per share.
March 1, 2020 Declare and pay common dividends of $0.50 per share

(a) Use the financial statement effects template to indicate the effects of these separate transactions.

Use negative signs with answers, when appropriate.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Apr. 15	Answer		Answer		Answer		Answer		Answer
Apr. 15	Answer		Answer		Answer		Answer		Answer
Oct. 1	Answer		Answer		Answer		Answer		Answer
Mar. 1	Answer		Answer		Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer

(b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020.
$Answer

PreviousSave AnswersFinish attempt ...

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