Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Nottebart declares a cash dividend of $300,000. How will the dividend be shared by common and preferred stockholders if the preferred is (a) noncumulative and (b) cumulative?
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: The dividends are declared from the retained earnings of the business.
Q: On December 31, 2020, Swifty, Inc. has 3700 shares of 5% $100 par value cumulative preferred stock…
A: Solution: To record accounting entry in relation with declaration of cash dividends, Cash dividends…
Q: On January 1, 2020, Gridley Corporation had 375,000 shares of its $2 par value common stock…
A: Given: Jan 1st Outstanding shares = 375,000 Par value = $2 March 1 Sold = 750,000 Market price = $20…
Q: Vaughn Manufacturing has 10,800 shares of 8%, $100 par value, cumulative preferred stock outstanding…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The shareholders’ equity of Kramer Industries includes the data shown below. During 2022, cash…
A: The cumulative preference stocks represent those stocks that contain the benefit of accumulating the…
Q: Lily Corporation has 3,000 shares of 8%, $115 par value preferred stock outstanding at December 31,…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Outstanding stock of the Crevusse Corporation included 40,000 shares of $5 par common stock and…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: At December 31, 2020, Coronado Industries had 1140000 shares of common stock outstanding. In…
A: We know that the diluted earnings per share is the net income generated by each outstanding share…
Q: Concord Corporation has 6500 shares of 5%, $100 par value, cumulative preferred stock and 13000…
A: Annual dividend to preferred stock=No. of share×Par value×5%=6500×$100×5%=$32,500
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…
Q: Kingdom Corporation has the following $500,000 Preferred stock, $10 par value, 7%, 50,000 shares…
A: Dividend declared is first distributed to preferred stockholders at the rate prescribed and the…
Q: Palestine Corporation has $800,000 of 6% preferred stock, and $3,200,000 of common stock…
A: The company raises the finance from various sources, one of them is common stock. The investor who…
Q: On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 317,000 shares of…
A: Calculation of W. Avg Number of shares (For Basic EPS) Calculation No of shares…
Q: Watson, Inc. has 10,000 shares of 4%, $100 par value, cumulative preferred stock, and 20,000 shares…
A: From the profit earned by the business entity, some of the profit is distributed by the business…
Q: Coke Company had 2 million shares of common stock outstanding all through 2020. On April 1, 2021, an…
A: The shares outstanding means the equity shares issued and sold by the company in exchange for the…
Q: Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000…
A: Formulas:
Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A:
Q: On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 20 million shares of…
A:
Q: ordinary shares and outstanding at December 31, 2021. On July 1, 2022, an additional 40,000 shares…
A: Diluted Shares can be referred as the total number of shares which the corporation has at the…
Q: Swifty Corporation, has 14100 shares of 4%, $100 par value, cumulative preferred stock and 61000…
A: Cumulative preference shares are those shareholders whose dividend has been accumulated and paid in…
Q: On January 1, 2021, Tonge Industries had outstanding 820,000 common shares ($1 par) that originally…
A: EPS is earnings per share it is calculated using the following formula : Basic EPS : Net income -…
Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Compute the basic and diluted earnings per share for the year ended December 31, 2021: Compute the…
Q: On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 5 million shares of…
A: EPS termed as Earnings per share which refers to the monetary value of the earnings per outstanding…
Q: Kimber Inc. reported net income of $177,500 during 2021. At January 1, 2021 Kimber had 100,000…
A: EPS stands for earning per share. A company has two types of EPS i.e basic and diluted. Basic EPS is…
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Kingdom Corporation has the following: Preferred stock, $10 par value, 9%, 50,000 shares issued…
A: Equity shares provide the ownership of the company and shareholders are paid only after the dues…
Q: On January 1, 2021, Tonge Industries had outstanding 460,000 common shares ($1 par) that originally…
A: Numerator / Denominator = Earning per share Basic $ 550,000 / 463,000 =…
Q: Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued In…
A: The dividend is the return to the shareholders for their investment in the company. It is…
Q: On December 31, 2020, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty…
A: Compute the numerator: Net loss ($140) Preferred stock dividend (20 x 100 x 8%) ($160) Total…
Q: M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding…
A: Given, Total Dividend = $375,000 Annual Preferred Dividend = 10,000 * $100 * 8% = $80,000
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: Calculation of dividend payble to preference shareholders >> (50,000 *100*12%) = 600,000 But…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…
Q: Vaughn, Inc. has 9900 shares of 8%, $100 par value, cumulative preferred stock and 99000 shares of…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The stockholders’ equity section of Maria Corporation at December 31, 2020, included the following:…
A: The dividend is paid to shareholders from the cumulative profits of retained earnings of the…
Q: On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 301,000 shares of…
A: EPS termed as Earnings per share which states that how much amount of money that business makes from…
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: cash dividends shall the ordinary shareholders
A: Cash dividends received by preference shareholders = Amount of outstanding preference shares * Rate…
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 Corp. had 307000 shares of common stock issued and outstanding at December 31, 2020. During…
A:
Q: Outstanding stock of the Marigold Corporation included 20600 shares of $5 par common stock and 10300…
A: Calculations: 2019 Preferred Dividend payable (10,300 x $10) x 7% $7,210 Dividends paid…
Q: Crane Company has 10,000 shares of 7%, $100 par value, cumulative preferred stock outstanding at…
A: Dividends are the share of profits that are distributed to the shareholders of the company.…
Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Net Income $2,100,000 Less: preferred dividend $75,000 Profit available $2,025,000…
Q: McNabb Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value…
A: a.
Q: As of December 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and…
A:
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Earnings Per Share - Businesses all over the world exist to make money and increase the wealth of…
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
Q: During 2020, Goodfellow has the following transactions involving its common and preferred stock: a.…
A: The company will increase the financial position by issuing shares, bonds, debentures, etc., These…
Q: Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares…
A: The preferred stockholders get the dividend before the dividend is paid to common stockholders.
Q: On December 31, 2020, Berclair Inc. had 240 millton shares of common stock and 3 million shares of…
A: EPS means earnings per share. It represents the per share amount earned by the common stockholders.
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…
Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6%
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
- 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.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher 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?
- 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?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.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 stockholders
- 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.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?
- 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. 3,370,000Cash 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?Statement 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.