Question

In: Accounting

Ayayai Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value,...

Ayayai Company’s ledger shows the following balances on December 31, 2020.

8% Preferred Stock—$10 par value, outstanding 18,600 shares $ 186,000
Common Stock—$100 par value, outstanding 27,500 shares 2,750,000
Retained Earnings 662,000


Assuming that the directors decide to declare total dividends in the amount of $371,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock.

(a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

(c) The preferred stock is noncumulative and is participating in distributions in excess of a 11% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Ayayai Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value,...
Ayayai Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value, outstanding 18,600 shares $ 186,000 Common Stock—$100 par value, outstanding 27,500 shares 2,750,000 Retained Earnings 662,000 Assuming that the directors decide to declare total dividends in the amount of $371,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Question 2 Ayayai Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10...
Question 2 Ayayai Company’s ledger shows the following balances on December 31, 2020. 8% Preferred Stock—$10 par value, outstanding 18,600 shares $ 186,000 Common Stock—$100 par value, outstanding 27,500 shares 2,750,000 Retained Earnings 662,000 Assuming that the directors decide to declare total dividends in the amount of $371,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value,...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value, outstanding 18,200 shares $ 182,000 Common Stock—$100 par value, outstanding 32,400 shares 3,240,000 Retained Earnings 684,000 Assuming that the directors decide to declare total dividends in the amount of $333,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value,...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value, outstanding 18,200 shares $ 182,000 Common Stock—$100 par value, outstanding 32,400 shares 3,240,000 Retained Earnings 684,000 Assuming that the directors decide to declare total dividends in the amount of $333,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Blossom Company’s ledger shows the following balances on December 31, 2020. 7% Preferred Stock—$10 par value,...
Blossom Company’s ledger shows the following balances on December 31, 2020. 7% Preferred Stock—$10 par value, outstanding 20,500 shares $ 205,000 Common Stock—$100 par value, outstanding 32,100 shares 3,210,000 Retained Earnings 585,000 Assuming that the directors decide to declare total dividends in the amount of $343,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value,...
Sage Company’s ledger shows the following balances on December 31, 2020. 4% Preferred Stock—$10 par value, outstanding 18,200 shares $ 182,000 Common Stock—$100 par value, outstanding 32,400 shares 3,240,000 Retained Earnings 684,000 Assuming that the directors decide to declare total dividends in the amount of $333,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Monty Company’s ledger shows the following balances on December 31, 2020. 7% Preferred Stock—$10 par value,...
Monty Company’s ledger shows the following balances on December 31, 2020. 7% Preferred Stock—$10 par value, outstanding 21,800 shares $ 218,000 Common Stock—$100 par value, outstanding 32,300 shares 3,230,000 Retained Earnings 572,000 Assuming that the directors decide to declare total dividends in the amount of $346,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Marigold Company’s ledger shows the following balances on December 31, 2017. 8% Preferred Stock—$10 par value,...
Marigold Company’s ledger shows the following balances on December 31, 2017. 8% Preferred Stock—$10 par value, outstanding 20,400 shares $ 204,000 Common Stock—$100 par value, outstanding 27,300 shares 2,730,000 Retained Earnings 589,000 Assuming that the directors decide to declare total dividends in the amount of $396,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully...
Exercise 15-22 Crane Company’s ledger shows the following balances on December 31, 2020. 6% Preferred Stock—$10...
Exercise 15-22 Crane Company’s ledger shows the following balances on December 31, 2020. 6% Preferred Stock—$10 par value, outstanding 21,600 shares $ 216,000 Common Stock—$100 par value, outstanding 32,300 shares 3,230,000 Retained Earnings 618,000 Assuming that the directors decide to declare total dividends in the amount of $353,000, determine how much each class of stock should receive under each of the conditions stated below. One year‘s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative...
Exercise 15-6 Bridgeport Limited’s ledger shows the following balances on December 31, 2020: Preferred shares outstanding:...
Exercise 15-6 Bridgeport Limited’s ledger shows the following balances on December 31, 2020: Preferred shares outstanding: 31,000 shares $ 837,000 Common shares outstanding: 47,000 shares 3,478,000 Retained earnings 955,330 A.) Assuming that the directors decide to declare total dividends in the amount of $477,665, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one year’s dividends are in arrears on the preferred shares, which pay a dividend of $1.35...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT