menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Dividends per share Triple Z Inc., a developer of radiology equipment, has stock outstanding as follows: 12,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $10 par common. During its first four year of operations, the following amounts were distributed as dividends: first year, $27,000; second year, $60,000, third year, $80,000, fourth year, $90,000. Calculate the dividends per share on each class of stock for each of the four years.

BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
BuyFindarrow_forward

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
Chapter 11, Problem 11.1EX
Textbook Problem
3 views

Dividends per share

Triple Z Inc., a developer of radiology equipment, has stock outstanding as follows: 12,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $10 par common. During its first four year of operations, the following amounts were distributed as dividends: first year, $27,000; second year, $60,000, third year, $80,000, fourth year, $90,000. Calculate the dividends per share on each class of stock for each of the four years.

To determine

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation. The dividend payments are not guaranteed and are paid after the payment made to the preferred stockholders.

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

A preferred stock may be cumulative and non-cumulative. A cumulative preferred stock implies that a preferred stockholder is entitled to receive dividends for the current year plus any unpaid dividends of the previous years, before the dividends paid to the common stockholders.

Dividend per share:

Dividend per share represents the amount of dividend paid to each shareholders of the business.

To determine: The dividends per share for preferred and common stock for each year.

Explanation of Solution

In first year, T Incorporation has paid only $27,000 as dividend in total. Therefore, preference shareholders get only $27,000 as dividends in first year; remaining balance of $9,000 ($36,000(1)$27,000) would be paid as dividend in arrears in future.

In second year, T Incorporation has paid $60,000 as dividend in total. Therefore, preference shareholders get $45,000 as dividends in second year, which includes $36,000 for current year plus $9,000 dividends in arrears. Common stockholders gets dividend of $15,000, after $45,000 payment made as preferred dividends.

In third year, T Incorporation has paid $80,000 as dividend in total

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 11 Solutions

Financial & Managerial Accounting
Show all chapter solutions
add
Ch. 11 - Dividends per share National Furniture Company has...Ch. 11 - Dividends per share Zero Calories Company has...Ch. 11 - Entries for issuing stock On August 26, Mountain...Ch. 11 - Entries for issuing stock On January 22, Zentric...Ch. 11 - Entries for cash dividends The declaration,...Ch. 11 - Entries for cash dividends The declaration,...Ch. 11 - Entries for stock dividends Olde Wine Corporation...Ch. 11 - Entries for stock dividends Antique Buggy...Ch. 11 - Entries for treasury stock On January 31,...Ch. 11 - Entries for treasury stock On May 27, Hydro...Ch. 11 - Reporting stockholders equity Using the fallowing...Ch. 11 - Reporting stockholders equity Using the following...Ch. 11 - Retained earnings statement Rockwell Inc. reported...Ch. 11 - Retained earnings statement None Cruises Inc....Ch. 11 - Earnings per share Financial statement data for...Ch. 11 - Earnings per share Financial statement data for...Ch. 11 - Dividends per share Triple Z Inc., a developer of...Ch. 11 - Dividends per share Lightfoot Inc., a software...Ch. 11 - Entries for issuing par stock On April 20,...Ch. 11 - Entries for issuing no-par stock On May 15, Helena...Ch. 11 - Issuing stock for assets other than cash On July...Ch. 11 - Selected stock transactions Alpha Sounds Corp., an...Ch. 11 - Issuing stock Willow Creek Nursery, with an...Ch. 11 - Issuing stock Occupational Products Inc., a...Ch. 11 - Entries for cash dividends The declaration,...Ch. 11 - Entries for stock dividends Senior Life Co. Is an...Ch. 11 - Treasury stock transactions Mystic Lake Inc....Ch. 11 - Treasury stock transactions Lawn Smart Inc....Ch. 11 - Treasury stock transactions Biscayne Bay Water...Ch. 11 - Reporting paid-in capital The following accounts...Ch. 11 - Stockholders Equity section of balance sheet The...Ch. 11 - Stockholders Equity section of balance sheet...Ch. 11 - Retained earnings statement Sumter Pumps...Ch. 11 - Stockholders Equity section of balance sheet List...Ch. 11 - Statement of stockholders equity The stockholders...Ch. 11 - Effect of stock split Copper Grill Restaurant...Ch. 11 - Effect of cash dividend and stock split Indicate...Ch. 11 - Selected dividend transactions, stock split...Ch. 11 - EPS Junkyard Arts, Inc., had earnings of 316,000...Ch. 11 - EPS Pacific Gas and Electric Company is a large...Ch. 11 - EPS For a recent year, OfficeMax and Staples are...Ch. 11 - Dividends on preferred and common stock Sunbird...Ch. 11 - Stock transactions for corporate expansion On...Ch. 11 - Selected stock transactions The following selected...Ch. 11 - Entries for selected corporate transactions Morrow...Ch. 11 - Entries for selected corporate transactions...Ch. 11 - Dividends on preferred and common stock Yosemite...Ch. 11 - Stock transaction for corporate expansion Pulsar...Ch. 11 - Selected stock transactions Diamondback Welding ...Ch. 11 - Entries for selected corporate transactions Nav-Go...Ch. 11 - Entries for selected corporate transactions West...Ch. 11 - Board of directors actions Bernie Ebbers, the CEO...Ch. 11 - Ethics and professional conduct in business Lou...Ch. 11 - Issuing stock Epstein Engineering Inc. began...Ch. 11 - Interpret stock exchange listing The following...Ch. 11 - Dividends Motion Designs Inc has paid quarterly...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What is systems selection?

Accounting Information Systems

What are the components of a typical business report?

Foundations of Business (MindTap Course List)

Why do public utilities generally use different capital structures than biotechnology companies?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)