The Ted Williams Corporation has the following stock outstanding: 100,000 shares of cumulative preferred 4% stock with a $12 par value 300,000 shares of common stock with a $1 par value During the first five years of operations the company paid the following cash dividends: Year 1- Year 225,000 Year 380,000 Year 490,000 Year 5120,000 a. Calculate the expected preferred annual dividend. b. Determine the dividend payouts for each class of stock over the five years. c. Record the journal entries for Year 3, if the dividend declaration date was October 2, the date of record was Oct 18, and the date of payment was November 5.

Dividend :— The annual or Interim Return paid by the Company to their Preference Shareholders or…

Answered: The Ted Williams Corporation has the…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter12: Statement Of Stockholders’ Equity (stockeq)

Section: Chapter Questions

Problem 1R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...

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The Ted Williams Corporation has the following stock outstanding:
100,000 shares of cumulative preferred 4% stock with a $12 par value
300,000 shares of common stock with a $1 par value

During the first five years of operations the company paid the following cash dividends:

Year 1	-
Year 2	25,000
Year 3	80,000
Year 4	90,000
Year 5	120,000

a. Calculate the expected preferred annual dividend.
b. Determine the dividend payouts for each class of stock over the five years.
c. Record the journal entries for Year 3, if the dividend declaration date was October 2,
the date of record was Oct 18, and the date of payment was November 5.

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