Case B Preferred shares are cumulative and participating with common shares after the common shares receive a $1 per sharedividend. Participation is based on relative annual total base dividends.YearTotal PaidPreferredCommon20X3 allocation:ArrearsCurrentMatchingRemainderTotal In 20X3, Snowboard Ltd. had the following share capital outstanding:Preferred shares, no-par value; $2.00 dividend: authorized, unlimitedshares; issued, 100,000 sharesCommon shares, no-par value; authorized, unlimited shares;issued, 800,000 shares24800,0001,040,000No dividends were declared in 20X1 or 20X2, but $1,580,000 of dividends were declared in 20X3.Required:Calculate the amount of dividends that would be paid in 20X3 to each share class under the following separate cases:Case A Preferred shares are cumulative and non-participating.YearTotal PaidPreferredCommon20X3allocation:ArrearsCurrentRemainderTotal

Dividend refers to the amount that shareholders earn from investing in a company by purchasing…

Required: Calculate the amount of dividends that would be paid in 20X3 to each share class under the following separate cases: Case A Preferred shares are cumulative and non-participating. Year Total Paid Preferred Common 20X3 allocation: Arrears Current Remainder Total

Required: Calculate the amount of dividends that would be paid in 20X3 to each share class under the following separate cases: Case A Preferred shares are cumulative and non-participating. Year Total Paid Preferred Common 20X3 allocation: Arrears Current Remainder Total

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
On April 1, 20x9, Hyde Corp., a newly formed company, had the following stock issued and outstanding: Ordinary shares, ₱1 par value, 20,000 shares originally issued for ₱30 per share. Preference shares, ₱10 par value, 6,000 shares originally issued for ₱50 per share. Hyde’s April 1, 20x9, statement of shareholders’ equity should report Ordinary shares Preference shares Share premium ₱20,000 ₱60,000 ₱820,000 ₱20,000 ₱300,000 ₱580,000 ₱600,000 ₱300,000 ₱0 ₱600,000 ₱60,000 ₱240,000
The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary share capital, P20 par value, 20,000 shares outstanding Preference share capital, 5% P100 par value, non-cumulative and fully participating, 2,000 shares outstanding No dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P210,000 was declared. How much dividends will be received by the preference shares holders?
Toasty Corporation is a publicly owned company. The following information is taken from a recentbalance sheet. Dollar amounts (except for per-share amounts) are stated in thousands.Stockholders’ equity:Convertible $10 preferred stock, no parvalue, 1,000,000 shares authorized, 250,000 sharesissued and outstanding, $200 per share liquidationpreference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000Common stock, $3 par value, 40,000,000 sharesauthorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,600Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,800Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,600Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…
ECE Corporation had the following shareholder’s accounts before the declaration of dividend. Ordinary share capital, P5 par (authorized, 500,000 shares) 1,500,000 Share premium 1,560,000 Retained earnings 1,210,000 Market value of the ordinary share on this date is P40 per share. The company declared and distributed 10% share dividend. How much is the share premium after issuance of bonus shares? Group of answer choices P2,340,000 P3,240,000 P3,915,000 P3,024,000
The H2 Corp has the following classes of share capital outstanding as of Dec 31, 2021.Ordinary share capital, P20 par value, 20,000 shares outstandingPreference share capital, 5% P100 par value, cumulative and partially participating 4%, 2,000 shares outstandingNo dividends were paid on Preference shares for two years. On Dec 31, 2021 a total Cash dividend of P180,000 was declared.How much dividends will be received by the preference shares holders? A.73,333 B.38,222 C.38,000 D.120,000
Parsons, Inc., is a publicly owned company. The following information is excerpted from a recentbalance sheet. Dollar amounts (except for per share amounts) are stated in thousands.Stockholders’ equity:Convertible $17.20 preferred stock, $250 parvalue, 1,000,000 shares authorized; 345,000 sharesissued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,250Common stock, par value $0.50; 25,000,000 sharesauthorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,819Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,260Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,263Total stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $237,592InstructionsFrom this information, answer the…
From the following data, prepare in good form the shareholder's equity section of Zest Corporation: 10% Preferred share, cumulative, non-participating P1,000 par value, 5,000 shares authorized, 2,000 shares issued P 2,000,000 Ordinary share, no par value, 10,000 shares authorized, 9,000 shares issued, stated value P200 per share 1,800,000 Contributed capital from Donation of Plant Site 2,500,000 Premium on preferred share issuances 200,000 Capital in excess of stated value from ordinary share issuances 250,000 Retained Earnings (debit balance) 100,000 Subscribed Preferred share 200 shares 200,000 Subscriptions Receivable…
Jimin Corporation had the following shareholders’ equity accounts before the declaration of dividend: >Ordinary Share Capital, P5 par, 500,000 shares authorized-P1,500,000 >Additional Paid in Capital- P1,550,000 > Retained Earnings- P1,210,000 Market value of the Ordinary Share Capital on the date of declaration is P30 per share and P45 per share on the date of issuance. Assuming that the corporation declared and distributed a 10% share dividend, what was the total contributed capital after the issuance of the bonus shares?
AAA Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and 300,000 shares of P30 par ordinary shares. During the current year, the corporation declared and paid a total cash dividend of P900,000. Required: For each of the following independent cases below, compute the total dividends to be received by each class ofstock. 1. The preference share is non-cumulative and non-participating2. The preference share is cumulative and non-participating with one-year dividends in arrears3. The preference share is non-cumulative and participating4. The preference share is cumulative and participating with no dividends in arrears5. The preference share is cumulative and participating with three years dividends in arrears
Presented below is information related to Hale Corporation: Share Capital- -Ordinary, $1 par 4 300,000 Share premium- -Ordinary 550.000 Share Capital Preference 8 1/2%, $50 par 2,000,000 Share premium -Preference 400,000 Retained Earnings 1,500,000 Treasury Shares Ordinary (at cost) 150,000 The total equity of Hale Corporation is Select one: a.$7,100,000. b.$7,250,000. C.$8,600,000. d.8,750,000. 2.Randall pic is a company that, during the year ended 31 December 2020, paid $25,000 debenture interest and paid an ordinary dividend of 8 pence per share on 1 million £1 ordinary shares. The retained profit for the year was $160,000. What was Randall pc's profit for the year? Select one: a.$215,000 b.$80,000 c.$240,000 d.$265,000