The charter of a corporation provides for the issuance of 104,020 shares of common stock. Assume that 35,959 shares were originally issued and 3,317 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

The charter of a corporation provides for the issuance of 104,020 shares of common stock. Assume that 35,959 shares were originally issued and 3,317 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

See similar textbooks

Related questions

Q: The charter of a corporation provides for the issuance of 103,000 shares of common stock. Assume…

A: Dividend is declared on the basis of number of share issued to the public.

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: Number of shares outstanding = Shares issued - Shares reacquired

Q: The charter of a corporation provides for the issuance of 95,106 shares of common stock. Assume that…

A: The 3,554 shares reacquired are called treasury shares. Treasury shares are not entitled to…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: Given: Charter state issuance of common stock =100000Shares originnaly issued =40000Shares…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: dividend is paid on shares which are outstanding that is shares issued minus shares reacquired on…

Q: the total number of outstanding shares of West Corporation amounts to?

A: Given information is: If West Corporation has 80,000 ordinary shares authorized, has 50,000 ordinary…

Q: The charter of a corporation provides for the issuance of 10,000 shares of common stock. Assume that…

A: Formula: Cash dividends = Number of outstanding shares x Dividend per share. Multiplying dividend…

Q: The charter of a corporation provides for the issuance of 120,000 shares of common stock. Assume…

A: Formula: Total dividends = Number of Outstanding shares x Dividend per share

Q: What is the number of shares outstanding?

A: Answer - c.44,000

Q: A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares…

A: Total fair market prices of assets = Land + Building + Equipment = $65000 + 120000 + 45000 =…

Q: The charter of a corporation provides for the issuance of 99,000 shares of common stock. Assume that…

A: Dividends: Distribution of company profits to their share holders based on their investments.

Q: The charter of a corporation provides for the issuance of 105,588 shares of common stock. Assume…

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: The charter of a corporation provides for the issuance of 111,000 shares of common stock. Assume…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: A corporation is authorized to issue 60,000 shares of $30 common stock, the corporation should…

A: Authorized capital is the maximum number of shares that a company can issue. Paid-in capital is the…

Q: The corporate charter of Metlock, Corporation allows the issuance of a maximum of 100,000 shares of…

A: Authorized shares are the maximum number of shares a company is authorized to issue. Issued shares…

Q: The charter of a corporation provides for the issuance of 114,615 shares of common stock. Assume…

A: Note: Dividend is paid on the number of shares issued and outstanding. Number of shares issued and…

Q: The charter of a corporation provides for the issuance of 113,026 shares of common stock. Assume…

A: Dividends are paid on the Shares outstanding, not on shares issued. Shares outstanding = 37,231 -…

Q: During its first year of operations, Eastem Data Links Corporation entered into the following…

A: Issuance of shares, non-cash consideration: Shares can be sold for cash or can be issued for…

Q: The charter of a corporation provides for the issuance of 104,571 shares of common stock. Assume…

A: Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its…

Q: The charter of a corporation provides for the issuance of 95,000 shares of common stock. Assume that…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: What is the number of shares outstanding?

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: The corporate charter of Carla Vista Corporation allows the issuance of a maximum of 30,800,000…

A: Introduction:- The Following Basic Information as follows under:- Carla Vista Corporation allows…

Q: The charter of a corporation provides for the issuance of 94,546 shares of common stock. Assume that…

A: Dividend is paid on the shares outstanding. Shares outstanding = 41,432 - 3,112 = 38,320 shares

Q: On January 1, 2021 a corporation was organized. The firm was authorized to Issue 150,000 shares of…

A: Stockholder's equity at the end of 2021 = Common stock + Paid in capital in excess of par common…

Q: shares were originally issued and 13,800 were subsequently reacquired. What is the number of shares…

A: Common stock is the most common type of stock that is issued by the stockholders. It qualifies…

Q: The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its…

A: Authorized capital represents the limit of capital set at the time of incorporation where the…

Q: The charter of a corporation provides for the issuance of 106,898 shares of common stock. Assume…

A: No. of shares issued ansd outstanding = No. of shares originally issued - No. of shares reacquired =…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: Formula: Shares outstanding = Shares issued - shares reacquired. Shares reacquired gets deducted…

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares…

A: Common Stock and preferred stock are two type of shares issued by the company. Any amount received…

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800…

A: Any excess received for issue of shares other than the par value goes to Paid-in Capital in Excess…

Q: The charter of a corporation provides for the issuance of 138,000 shares of common stock. Assume…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: What is the number of shares outstanding?

A: Share Outstanding: = Issued shares- reacquired shares. Even if charter provides for 136,000 shares…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: Number of shares outstanding are computed by deducting the number of shares reacquired from total…

Q: The charter of a corporation provides for the issuance of 114,000 shares of common stock. Assume…

A: Equity share capital refers capital which is raised by a corporation by offering shares.

Q: During its first year of operations, Eastern Data Links Corporation entered into the following…

A: Given information is: During its first year of operations, Eastern Data Links Corporation entered…

Q: The charter of a corporation provides for the issuance of 120,000 shares of common stock. Assume…

A: Authorized share capital is the number of stock units (shares) that a corporation can issue as…

Q: The charter of a corporation provides for the issuance of 95,662 shares of common stock. Assume that…

A: Dividend:-It is a form of profit which shareholder received in return of their investment made in…

Q: a corporation issues 1,200,000 shares of stock at its beginning to shareholders. how many shares…

A: Given, Issue of shares = 1,200,000

Q: The charter of a corporation provides for the issuance of 114,964 shares of common stock. Assume…

A: Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its…

Q: The charter of a corporation provides for the issuance of 118,000 shares of common stock. Assume…

A: Formula: Amount of cash dividends to be paid = No. of shares issued and outstanding x Dividend per…

Q: The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume…

A: Outstanding shares for dividend = originally issued - reacquired shares Outstanding shares = 45000 -…

Q: The charter of a corporation provides for the issuance of 116,962 shares of common stock. Assume…

A: Cash dividend will be paid for shares issued Less shares reacquired

Q: The charter of a corporation provides for the issuance of 117,000 shares of common stock. Assume…

A: Shares means the acknowledgement issued by company signifying the holder to be the owner or share…

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share.…

A: When shares are sold by a corporation in excess of par, cash is received and an increase in cash is…

Q: The charter of a corporation provides for the issuance of 111,000 shares of common stock. Assume…

A: Stock: A kind of investment that are made by the investors, in order to get more returns is…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Analysis

VIEW

Step 2 Calculation of dividend

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $100 par value 7% preferred stock. It is also authorized to issue 500,000 shares of $5 par value common stock. During the year, the corporation had the following transactions: Journalize the transactions.
MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
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.
Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par value 7% preferred stock. It is also authorized to issue 75,000,000 shares of $5 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue 3,000,000 shares of $40 par value 9% preferred stock. It is also authorized to issue 3,750,000 shares of $2 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 6% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.
Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and 5,000,000 shares of $1 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cash
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. 3,370,000