n September 6, 2020, the board of directors of Peterson Manufacturing voted to distribute $4,600,000 to the firm's stockholders.If the firm has issued 75,000 shares of 4% preferred stock with a par value of $10 and 1,870,000 shares of common stock outstanding, calculate the following. (Round all answers to the nearest cent.) 1. Dividend per share of preferred stock: $ 2. Dividend per share of common stock:
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: The dividend on preference shares is paid before any dividend is paid to common stockholders, and…
Q: Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000…
A: Cumulative preference shareholders are the holders of the preference securities of a company whose…
Q: During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and…
A: In case of non-cumulative preferred stock, if any dividend remains unpaid in any given year, it is…
Q: On December 31, 2020, Berclair Inc. had 280 million shares of common stock and 7 million shares of…
A: Earning per share means earning per share given by company to it's share holders. Formula Earning…
Q: On December 31, 2020, Berclair Inc. had 480 million shares of common stock and 5 million shares of…
A: 1) Basic Earnings Per Share = (Net Profit - Preference Shares Dividends) / Weighted Average O/s…
Q: On October 1, 2021, 500 shares of treasury stock were purchased at $40 per share. On January 15,…
A: The question endeavors to understand which of the four options would be a result of the transaction…
Q: Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of…
A: A dividend represents the distribution of profit among the shareholders.
Q: On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase…
A: The company is required to have maximum shares in the market for the growth of the business and long…
Q: Palestine Corporation has $800,000 of 6% preferred stock, and $3,200,000 of common stock…
A: The company raises the finance from various sources, one of them is common stock. The investor who…
Q: On January 1, 2020, Company D issued 6,000 shares of its $2 par Common Stock when the market price…
A: Common stock: Common stock is an equity ownership in organization. Common stockholders have a…
Q: Watson, Inc. has 10,000 shares of 4%, $100 par value, cumulative preferred stock, and 20,000 shares…
A: From the profit earned by the business entity, some of the profit is distributed by the business…
Q: On December 31, 2020, Berclair Inc. had 500 million shares of common stock and 20 million shares of…
A:
Q: tive, preferred stock were outstanding. (convertible into 40,000 shares of common). No dividends…
A: After distributing the net income to the preference shareholders whatever has been left is divided…
Q: On December 31, 2020, Berclair Inc. had 360 million shares of common stock and 4 million shares of…
A: Calculation of weighted Shares Outstanding during the year PARTICULAR OUTSTANDING PERIOD…
Q: In 2022, Margaritaville's Products completed the treasury stock transactions described below.…
A: Date Description Debit Credit January 3 Cash A/c $2,730,000 To Common Shares A/c…
Q: 4. On September 6, 2020, the board of directors of Peterson Manufacturing voted to distribute…
A: DPS or dividend per share implies for figure that an investor with only single share holding will…
Q: Vaughn, Inc. has 11300 shares of 8%, $100 par value, cumulative preferred stock and 113000 shares of…
A: Given that: Number of preferred shares = 11300 shares Par value per share = $100 Dividend rate = 8%…
Q: On January 1, 2021, Tonge Industries had outstanding 820,000 common shares ($1 par) that originally…
A: EPS is earnings per share it is calculated using the following formula : Basic EPS : Net income -…
Q: Bridgeport Corporation has outstanding 10,700 shares of $100 par value, 6% preferred stock and…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Compute the basic and diluted earnings per share for the year ended December 31, 2021: Compute the…
Q: On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 5 million shares of…
A: EPS termed as Earnings per share which refers to the monetary value of the earnings per outstanding…
Q: On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of…
A: Calculation of Weighted average number of common shares outstanding: Months No. of months…
Q: Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300…
A: No. of shares available for subscription = Total authorized to issue - Preference Shares…
Q: Delafield Corporation has a single class of common stock and a single class of cumulative preferred…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued In…
A: The dividend is the return to the shareholders for their investment in the company. It is…
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Dividend on cumulative preference share =30000 share×$50×7%=$105000
Q: On January 1, 2018, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares…
A: The company had issued shares at $8 and provided a premium of $4 to the shareholders. As no…
Q: Show
A:
Q: On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of…
A: Date Particulars No. of shares 01/01-31/12 610000 * 12/12 610000 * 1.04 634400 28/02-31/12…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…
Q: Vaughn, Inc. has 9900 shares of 8%, $100 par value, cumulative preferred stock and 99000 shares of…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Sheridan Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: Value of preferred stock=Number ofshares×Par value=2050×$50=$102,500
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: The preferred stockholders should give a preference at the time of payment of dividend and the…
Q: On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 307,000 shares of…
A: Basic EPS Numerator Net income $ 2,450,000 Less : Preferred div $ 76,000 Income…
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Given information, On December 31, 2020: Common stock outstanding = 100,000 7%, $50 par, Cumulative…
Q: Waterway, Inc. has 2700 shares of 4%, $50 par value, cumulative preferred stock and 54000 shares of…
A: Dividends are paid first to preferred stockholders and the remaining balance is paid to common…
Q: On December 31, 2020, Berclair Inc. had 560 million shares of common stock and 7 million shares of…
A: Basic EPS = Net income for equity / Weighted average number of equity shares
Q: On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per…
A: Share premium is the premium or additional paid in capital which has been received by the company in…
Q: The balance of Arndt’s retained earnings as of March 31, 2020, should be
A: Given that: Balance of Retained Earnings = P154,000 Value of additional shares as dividend = 900*18…
Q: McNabb Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value…
A: a.
Q: On December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000…
A: Basic EPS and diluted EPS is calculated to measure the earnings of common stockholders on their…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: The dividends are declared from the retained earnings balance.
Q: Hideo Co. was organized on January 1, 2021, with 300,000 shares of common stock with a $6 par value…
A: Cost method of treasury stock is simple as it considers the cost that is paid to repurchase that…
Q: On December 31, 2020, Shenandoah Company had 100,000 shares of common stock outstanding and 40,000…
A: Basic earning per share is earning attributable to per common share. And diluted earning per share…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Earnings Per Share - Businesses all over the world exist to make money and increase the wealth of…
Q: Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on…
A: Annual preferred dividend = 104,000 shares x $19 x 9% = $177,840
Q: During 2020, Goodfellow has the following transactions involving its common and preferred stock: a.…
A: The company will increase the financial position by issuing shares, bonds, debentures, etc., These…
Q: Vaughn, Inc., has 9000 shares of 5%, $100 par value, noncumulative preferred stock and 90000 shares…
A: The preferred stockholders get the dividend before the dividend is paid to common stockholders.
Q: On December 31, 2020, Berclair Inc. had 225 million shares of common stock and 4 million shares of…
A: Earning Per Share (EPS): Net profit divided by the number of common shares issued and outstanding is…
On September 6, 2020, the board of directors of Peterson Manufacturing voted to distribute $4,600,000 to the firm's stockholders.If the firm has issued 75,000 shares of 4%
1. Dividend per share of preferred stock: |
$
|
2. Dividend per share of common stock: |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.