Question
Asked Nov 3, 2019
61 views

want to know how to do the last two part.. thankssssss!

fullscreen
check_circle

Expert Answer

Step 1

Prepare a statement of retained earnings for the year ended December 31, 2018 assuming net profit for the year was $720,000 as shown below:

help_outline

Image Transcriptionclose

Amount ($) Particulars Opening balance of retained earnings Add: Net income Less: Dividends for cumulative perference dividend Less: Dividends for non-cumulative perference dividend Less: Dividends for common shares [(350,000+10,000) $0.05] Balance of retained earnings, December 31, 2018 $8,500,000 $720,000 $311,400 $720.000 $18,000 $8,170,600

fullscreen
Step 2

Working calculations:

help_outline

Image Transcriptionclose

Compute weighted average number of non-cumulative preference shares as shown below: Particulars Shares Opening number of cumulative shares Add: Shares issued on July 01 [26,000x(6-12)] Total number of cumulative preference shares 80,000 13.000 93,000 Compute weighted average number of cumulative-preference shares as shown below: Particulars Opening number of non-cumulative shares Shares 120,000 Add: Shares issued on Jan 01 Total number of non-cumulative preference shares 30.000 150,000

fullscreen
Step 3

Compute dividends on cumulative preference s...

help_outline

Image Transcriptionclose

Total value Parvalue of cumulative preference share (per share Number of shares $2,400, 000 80,000 - $30 Amount ($) Particulars Dividend for cumulative preference share for year 2017 ($2,400,000x6%) Dividends for cumulative preference share for year 2018 (93,000x$30x6% Total cumulative preference dividend $144,000 $167.400 $311,400

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $15,500. I...

A: Bonds payable are kind of long term debt generally issued by governments and corporations. The issue...

question_answer

Q: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald’s (MCD) company-owned ...

A: Click to see the answer

question_answer

Q: Joint Operation for 2018 Debit: Nov. 6 Mercandise-Peter ₱8,500                    8 Mercandise-Neil ...

A: Hence gain is ₱ 5,970 which is calculated by deducting income from expenses.

question_answer

Q: The following expenditures and receipts are related to land, land improvements, and buildings acquir...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: Cost of Goods Sold       Beginning Inventory       Add:                 Purchases       Freigh...

A: Gross Profit is computed by subtracting the cost of sales from total sales revenue. Cost of goods so...

question_answer

Q: Neyman Inc. has the following data for purchases and sales of inventory: Date Units Cost per Unit...

A: Cost of goods sold includes all the direct cost of a product that are incurred in its production.Cos...

question_answer

Q: Swifty Inc manufactures model airplanes and repair kits. The planes account for 90% of the sales mix...

A: Compute total contribution margin using sales mix for the two products as shown below:

question_answer

Q: Please redo this problem and show me steps on how to get the following questions correct, its statin...

A: Direct labor variance is calculated to check the difference between actual labor cost & standard...

question_answer

Q: For additional help, see the demonstration problem at the beginning of each chapter in your Working ...

A: Adjusting entries are the journal entries passed at the end of the financial year to close all the t...