Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,840 in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) New England's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2018 12,840 Dividend to preferred stockholders: Dividend in arrears 0 Current year dividend 15840 Total dividend to preferred stockholders 12,840 Dividend to common stockholders 0 New England's 2019 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2019 49,000 Dividend to preferred stockholders: Dividend in arrears 3,000 Current year dividend 15,840 Total dividend to preferred stockholders 18840 Dividend to common stockholders 30160 Requirement 2. Record the journal entries for 2018, assuming that New England Communications declared the dividend on December 1 for stockholders of record on December 10. New England Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Dec. 1, 2018: Declared dividend. Date Accounts and Explanation Debit Credit Dec. 1 Dec. 10, 2018: Date of record. Date Accounts and Explanation Debit Credit Dec. 10 Dec. 20, 2018: Paid dividend. Date Accounts and Explanation Debit Credit Dec. 20
Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,840 in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) New England's 2018 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2018 12,840 Dividend to preferred stockholders: Dividend in arrears 0 Current year dividend 15840 Total dividend to preferred stockholders 12,840 Dividend to common stockholders 0 New England's 2019 dividend would be divided between preferred and common stockholders in this manner: Total Dividend—2019 49,000 Dividend to preferred stockholders: Dividend in arrears 3,000 Current year dividend 15,840 Total dividend to preferred stockholders 18840 Dividend to common stockholders 30160 Requirement 2. Record the journal entries for 2018, assuming that New England Communications declared the dividend on December 1 for stockholders of record on December 10. New England Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Dec. 1, 2018: Declared dividend. Date Accounts and Explanation Debit Credit Dec. 1 Dec. 10, 2018: Date of record. Date Accounts and Explanation Debit Credit Dec. 10 Dec. 20, 2018: Paid dividend. Date Accounts and Explanation Debit Credit Dec. 20
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
Related questions
Question
Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $12,840
in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to
in 2018 and $49,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to
2018. Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.)
New England's
2018
dividend would be divided between preferred and common stockholders in this manner:
Total Dividend—2018
|
|
12,840
|
Dividend to preferred stockholders:
|
|
|
Dividend in arrears
|
0
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Current year dividend
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15840
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|
Total dividend to preferred stockholders
|
12,840
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|
Dividend to common stockholders
|
|
0
|
New England's
2019
dividend would be divided between preferred and common stockholders in this manner:
Total Dividend—2019
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|
49,000
|
Dividend to preferred stockholders:
|
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Dividend in arrears
|
3,000
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|
Current year dividend
|
15,840
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|
Total dividend to preferred stockholders
|
18840
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|
Dividend to common stockholders
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|
30160
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Requirement 2. Record the journal entries for
journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.)
2018,
assuming that
New England
Communications declared the dividend on December 1 for stockholders of record on December 10.
New England
Communications paid the dividend on December 20. (Record debits first, then credits. Select the explanation on the last line of the Dec. 1,
2018:
Declared dividend.
Date
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Accounts and Explanation
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Debit
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Credit
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Dec. 1
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Dec. 10,
2018:
Date of record.
Date
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Accounts and Explanation
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Debit
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Credit
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Dec. 10
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Dec. 20,
2018:
Paid dividend.
Date
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Accounts and Explanation
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Debit
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Credit
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Dec. 20
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