When Crossett Corporation was organized in January, Year 1, it immediately issued 5,500 shares of $51 par, 7 percent, cumulativepreferred stock and 10,000 shares of $10 par common stock. Its earnings history is as follows: Year 1, net loss of $15,400; Year 2, netincome of $125,000; Year 3, net income of $99,900. The corporation did not pay a dividend in Year 1.Requireda. How much is the dividend arrearage as of January 1, Year 2?Dividend arrearageb. Assume that the board of directors declares a $52,270 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?Total amount distributed to preferred sharesTotal amount distributed to common shares

Dividend is the reward given to the shareholders in the form of shares, cash or other.The dividend…

Answered: When Crossett Corporation was organized…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 1BCRQ

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For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51 par, 8 percent, cumulative preferred stock and 9,500 shares of $11 par common stock. Its earnings history is as follows: Year 1, net loss of $13,100; Year 2, net income of $58,900; Year 3, net income of $94,00. The corporation did not pay a dividend in Year 1. a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $64,880 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?
When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48 par, 8 percent, cumulative preferred stock and 12,000 shares of $8 par common stock. Its earnings history is as follows: Year 1, net loss of $12,700; Year 2, net income of $58,700; Year 3, net income of $119,700. The corporation did not pay a dividend in Year 1. b. Assume that the board of directors declares a $55,596 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Amounts to be deducted should be indicated with minus sign.)
When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51 par, 8 percent, cumulative preferred stock and 9,500 shares of $11 par common stock. Its earnings history is as follows: Year 1, net loss of $13,100; Year 2, net income of $58,900; Year 3, net income of $94,00. The corporation did not pay a dividend in Year 1. Assume that the board of directors declares a $64,880 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). a. How will the dividends paid from arrearage from year 1 be distributed to preferred stockholders? b. How will the dividends paid from dividends related to year 2 be distributed to preferred stockholders? c. How will the dividends paid from arrearage from year 1 be distributed to common stockholders?
LLA, Inc, was capitalized through the issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. LLA had net income as follows: Year 1 $100,000 Year 2 200,000 If, during Year 2, LLA paid dividends to its shareholders at $25 per share, what armount was LLA's retained earnings balance and shareholders' equity balance at the end of Year 27 Retained earnings Shareholders' equity $50,000 $550,000 B. $50,000 $800,000 $300,000 $550,000 $300,000 $800,000 D.
When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48 par, 8 percent, cumulative preferred stock and 12,000 shares of $8 par common stock. Its earnings history is as follows: Year 1, net loss of $12,700; Year 2, net income of $58,700; Year 3, net income of $119,700. The corporation did not pay a dividend in Year 1. question: How much is the dividend arrearage as of January 1, Year 2?
When Crossett Corporation was organized in January, Year 1, it immediately issued 4,500 shares of $48 par, 5 percent, cumulative preferred stock and 8,500 shares of $5 par common stock. Its earnings history is as follows: Year 1, net loss of $14,000; Year 2, net income of $123,000; Year 3, net income of $218,000. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $54,500 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. Required A Required B How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage
When Crossett Corporation was organized in January, Year 1, it immediately issued 4,500 shares of $48 par, 6 percent, cumulative preferred stock and 8,500 shares of $5 par common stock. Its earnings history is as follows: Year 1, net loss of $13,000; Year 2, net income of $122,000; Year 3, net income of $201,000. The corporation did not pay a dividend in Year 1. Required How much is the dividend arrearage as of January 1, Year 2? Assume that the board of directors declares a $54,500 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?
As of the end of Year 1, the shareholders’ equity of Philip Corporation consisted of: Common stock, 80,100 shares at $1 par $ 80,100 Paid-in capital—excess of par 168,210 Retained earnings 121,000 At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal entry for the repurchase and retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field
Waterway Corporation began business by issuing 649600 shares of $5 par value common stock for $25 per share. During its first year, the corporation sustained a net loss of $62300. The year-end balance sheet would show Common stock of $3248000. Common stock of $16240000. Total paid-in capital of $12992000. Total paid-in capital of $16177700.
On January 6, Year 1, Bulldog Co. purchased 34% of the outstanding stock of Gator Co. for $212,000. Gator Co. paid total dividends of $24,000 to all shareholders on June 30. Gator had a net loss of $56,000 for Year 1.a. Journalize Bulldog’s purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock.b. Compute the balance of Investment in Gator Co. Stock on December 31, Year 1.c. How does valuing an investment under the equity method differ from valuing an investment at fair value?

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