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QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Preferred Dividend per Preferred Share Number of Preferred Preferred Dividend for Dividend Share Rate Shares two years Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders

QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Preferred Dividend per Preferred Share Number of Preferred Preferred Dividend for Dividend Share Rate Shares two years Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 12.1EX: Dividends per share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as...
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QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Dividend per Preferred Preferred Dividend for two years Number of Par Value per Preferred Share Dividend Preferred Shares Rate Share Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders 2$ ... Prey 1 of 2 Next >
Transcribed Image Text:QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative preferred stock and 290,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Dividend per Preferred Preferred Dividend for two years Number of Par Value per Preferred Share Dividend Preferred Shares Rate Share Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders 2$ ... Prey 1 of 2 Next >
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