Instructions Show the allocation of dividends to each class of shares, assuming the preference share dividend is 6% and non-cumulative. A Show the allocation of dividends to each class of shares, assuming the preference share dividend is 7% and cumulative.
Q: Required: (Show all calculations and round ALL answers to 2 decimal places.) a. What is the par…
A: a. Par value of the preference share = $200,000 / 500 share Par value of the preference share = $400…
Q: A) Compute the EPS before the new shares are issued, round answers to two decimal places. $ B)…
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…
Q: h. Preference share capital is cumulative and nonparticipating i. Preference share capital is…
A: h. Preference share capital is cumulative and nonparticipating: Details Amount(₱) Total…
Q: Instructions: Compute for each of the items enumerated below. Number of preference shares issued for…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…
Q: Identify whether stockholders’ equity would increase (I), decrease (D), or have no effect (NE) as a…
A: Calculation of any changes to stockholder's equity:
Q: A company issues 10% preference shares with a par value of Sh 100 per share. The current market…
A: Preference share refer to the those shares which gives the shareholder a surety of fixed dividend…
Q: Which of the following is ordered from the largest numberof shares to the smallest number of…
A:
Q: This is a type of preference share where dividend entitlement accumulates each year until paid. * O…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: A share of 5% preferred stock has a par value of $60 and market value of $-00. 12 The owners of the…
A: The preference shareholders are also known as preferred stock boulders. The stockholders have the…
Q: Shareholders wealth is calculated as Select one: a. Number of shareholders X Current market price b.…
A: Shareholder's wealth is collective wealth created by the company and represented by its market…
Q: Earnings per share is computed on a. ordinary shares only b. preference shares only c. both…
A: Earnings Per Shares refers to Total Dividable profit divided by its number of common shares…
Q: he par value of a share of common stock…… Select one: a. is stated in the charter. b. is determined…
A: The par value is the face value of the shares issued to the shareholders.
Q: When calculating the weighted average number of common shares, how are stock dividends and stock…
A: Treatment of stock dividends and stock splits while computing the weighted average number of common…
Q: the earning per share is computed for: 1-common stock 2- non - redeemable preferred 3-…
A: Earning per share means amount of earning with which the company is left per share , after paying…
Q: Preferred dividends In each case in the following table, E, how many dollars of preferred dividends…
A: Preferred shares are the shares that are paid dividends before dividends are issued to the common…
Q: 4. Net income minus preferred dividends divided by the weighted average of shares…
A: Earning per share: When net income is divided on the basis of equity shares, it is called earning…
Q: Determine the dividends per share for preferred and common stock for each year. Round all answers to…
A: Year 20X1 Total Dividend = $112500 Preferred Stock Dividend = 25000 Shares x $100 x 3% = $75000…
Q: The correct order from the smallest number of shares to the largest number of shares is: a.…
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Q: When treasury shares are reissued below the reacquisition cost, the difference between the…
A: The treasury stock includes the shares that are bought back by the company from its own shares.
Q: Required: Calculate the amount of dividends that would be paid in 20X3 to each share class under the…
A: Dividend refers to the amount that shareholders earn from investing in a company by purchasing…
Q: The shareholders' equity section of the Rivera Corporation at December 31, 2018 shows the following:…
A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…
Q: What are the number of shares, par value per share, and market price per share immediately after the…
A: Information Provided: Stock Split = 2-for-1 Common shares = 11,000 Par = $1 Market Price = $16
Q: Dividend Allocations Situation 1 Nguyen Company has the following stock outstanding: Common Stock…
A: Preferred Stock is preferred for paying dividends. Pay the preferred stock at a predetermined rate…
Q: Cash dividends are paid based on the number of shares to. outstanding. b. issued (issued). C.…
A: Dividends is paid to the share holders for the money which is being invested in the company as share…
Q: Determine the total dividends and the per-share dividends declared on each class of stock for each…
A: The preferred shares are cumulative and thus previous year dividend not paid would also be repaid to…
Q: a. The number of shares outstanding after a 2-for-1 stock split is shares. (Round to the nearest…
A: When common shares go stock split, the number of shares outstanding increases, but there is no…
Q: Compute number of shares outstanding after the stock dividend. Number of shares outstanding
A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…
Q: What is the par value per share? * 5 point Mars Corporation recorded the following journal entry:…
A: Solution: Number of shares issued = total value of issue / issue price = 450000 / 120 = 3750 shares…
Q: For the purpose of calculating earnings per share (EPS), the denominator is: Select one: a.…
A: The earning per share is a financial ratio which tells about the profitability of the business.
Q: If the preference shares are cumulative and fully participating, how much is the dividends to be…
A: Formula: Dividends to common share holders = Total dividends - preferred dividends
Q: Cash dividends are paid based on the number of shares Select one: to. authorized b. issued c.…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: The data below shows the 5 stockholders given the par value, dividend percentage and number of…
A: Dividend is the amount distributed among the stockholders of the company from the earnings after…
Q: The par value per share of common stock represents the O a. minimum selling price of the stock…
A: Common Stock:-It is a security that represents the ownership in the corporation. It is the shares…
Q: Complete the table by finding the unknown show your complete solution in the separate sheet of…
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Q: utations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the…
A: In calculating the EPS of company accurately there is need to consider the weighted average number…
Q: When preference shares are participating as to dividends, the dividend allocated to preference…
A: Participating preference shares are those shares for which apart from fixed dividends paid to…
Q: Determine the following measures for 20Y2 (round to one decimal place, including percentages, except…
A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…
Q: As of the date of the financial statements, the number of common shares issued will exceed the…
A: Treasury stocks are repurchased shares of the company. The firm has the power to reissue these…
Q: Beck Corporation has one issue of preferred stock and one issue of common stock outstanding. Given…
A: Calculate the total amount invested in common stock as follows: Amount invested = Par value + Paid…
Q: When calculating the number of shares for diluted earnings per share: Select all that apply. The…
A: The formula for Diluted EPS: Diluted EPS=Net Income-Preferred DividendsWeighted Average Number of…
Q: Authorized shares are the a) Number of shares that have been distributed to shareholders b) Total…
A: Shares indicating the units of equity ownership according to the corporation's wealth. It distribute…
Q: A company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the…
A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…
Q: a. Show the effect on the equity accounts and per-share data of a 20% stock dividend. The number of…
A: When additional number of shares are issued to existing shareholders in place of cash dividend, it…
Q: From page 10-2 of the VLN, the common stock account amount is determined Group of answer choices A.…
A: Stockholder's Equity Stockholder's equity is the first and most important head of a balance sheet…
Q: Beacon Corporation issued a 4 percent stock dividend on 37,500 shares of its $8 par common stock. At…
A: Ordinary stock dividend - Small stock dividend (usually less than 20-25%) recorded at FV of stock at…
Q: alculated weighted average no. of shares
A: Weighted no. of shares is average no. of shares outstanding during the year after incorporating the…
Q: In computations of weighted average of shares outstanding, when a stock dividend or stock split…
A: WEIGHTED AVERAGE OF OUTSTANDING SHARES IS A CALCULATION THAT A COMPANY USES TO REFLECT ANY CHANGES…
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- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Otter Tail, Inc., began operations in January 2015 and had the following reported net income or loss for each of its 5 years of operations: At December 31, 2019, Otter Tails capital stock was comprised of the following: Otter Tail has never paid a cash or stock dividend. There has been no change in the capital accounts since Otter Tail began operations. The appropriate state law permits dividends only from retained earnings. Required: Prepare a worksheet showing the maximum amount available for cash dividends on December 31, 2019, and how it would be distributable to the holders of the common shares and each of the preferred shares. Show supporting computations in good form.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
- 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. 6.73On 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.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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?Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.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.Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.