Remington, Inc., has $800,000 of 4% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2017 and 2018. As of December 31, 2019, it is desired to distribute $270,000 in dividends.     Can you please explain how much will the preferred and common stockholders receive under each of the following assumptions:    (a) The preferred is noncumulative and nonparticipating.    (b) The preferred is cumulative and nonparticipating.

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A: The dividends are declared from the retained earnings of the business.

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A: The company raises the finance from various sources, one of them is common stock. The investor who…

Q: athan's Athletic Apparel has 1,500 shares of 6%, $100 par value preferred stock the company issued…

A: Solution 1 & 2:   Computation of dividends to each class of stockholders is as under:

Q: Rachel’s Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the…

A: Cumulative preferred stock is a class of preferred stock whose dividends accumulated if they are not…

Q: Davidson Company has 600,000 shares of treasury stock repurchased in 2018 at $25 per share. No…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: At the beginning of 2021, E-Games Corporation has issued 1,800 shares of 6%, $100 par value…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000…

A: Formulas:

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A: Note: Since the preference shares are cumulative in nature, the preference dividends even though not…

Q: Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share…

A: Preferred Common Total 2018 arrears $560,000 ($4 X 140,000 shares) - $560,000 2019…

Q: Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary…

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Q: Wow Inc., has 20,000 shares of 8%, $30 par value preference shares and 120,000 of ordinary shares…

A: a)working     particulars  Number of shares  Pv value  Interest %  Year 2017  Year…

Q: As of 2017, Buttle Corp. has $10 par, 2% preferred stock, 13,000 shares outstanding, and $1 par…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

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A: Diluted Shares can be referred as the total number of shares which the corporation has at the…

Q: Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2018:…

A: Dividend means the profit earned by the company distributed to the shareholders who put their money…

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A: Cumulative preference shares are those shareholders whose dividend has been accumulated and paid in…

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A: In case of cumulative  preferred  stock  the arrears of dividend  should also  be paid

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A: The treasury share are the buy back shares of the company.

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A: Preferred share holders are those shareholders who get preference while getting divided etc. from…

Q: Bridgeport Corporation has outstanding 10,700 shares of $100 par value, 6% preferred stock and…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

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A: Dividend is a kind of return paid to the shareholders.

Q: Assume that the records of Ardell Consulting show the following balances in the stockholders' equity…

A: a) If the preferred stock is noncumulative, the distribution will be allocated as: Common…

Q: Nowell Inc. had the following stock issued and outstanding at January 1, 2018:   150,000 shares of…

A: In case of cumulative preferred stock, any arrears dividend needs to be added to the preferred…

Q: Concord, Inc., has 4000 shares of 5%, $100 par value, noncumulative preferred stock and 32000 shares…

A: The calculation of annual preferred dividend has been made as follows: Annual preferred…

Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

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Q: Dakota Corporation had the following shareholders’ equity account balances at December 31, 2018:…

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A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: McNabb Corp. had $100,000 of 7%, $20 par value preferredstock and 12,000 shares of $25 par value…

A: a)

Q: ABC Inc. was founded in 2013 and shareholders received 100,000 ordinary shares of a nominal value of…

A: As per our protocol we provide solution to the one question only or up-to three sub-parts only…

Q: Bration has outstanding 9,600 shares of $100 par value, 6% preferred stock and 57,000 shares of $10…

A: In case of noncumulative preference shares the Dividend  which is in arrears  will not be paid to…

Q: Shamrock Corporation has 9,400 shares of $100 par value, 8%, preferred stock and 48,400 shares of…

A: For cumulative preferred stocks, the preferred dividend keeps on cumulating for all the periods for…

Q: cash dividends shall the ordinary shareholders

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A: Computation of the dividend received by common stockholders in 2018 is as follows :

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Q: Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50…

A: Dividend arrears are paid for cumulative preferred stock. Arrears in Year 1 = 20,000*$50*6% Arrears…

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A: Non-cumulative preference share can be defined as that type of preference share which pays dividend…

Q: Farber Company has 24,000 shares of $1 par common stock issued and outstanding. The company also has…

A: In case of cumulative preference shares the divided that are in arrears are to be paid when company…

Q: Ace Corporation pays its cumulative preferred stock $1.95 per share. There are 40,000 shares of…

A: The type of stocks whose holders are entitled to get their unpaid dividend amount is term as the…

Q: As of December 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and…

A:

Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…

A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…

Q: Jupiter corporation had the following shares outstanding at December 31, 2018: Ordinary shares, par…

A: The calculation of annual preference dividend has been made as follows: Annual preference…

Q: The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,…

A: working note: income available to common share after conversion  = (net income - preferred dividend…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.