Question
In: Accounting
XYZ's ledger shows the corresponding balances on December 31/20: Preferred shares outstanding: 33,000 shares $ 660,000...
XYZ's ledger shows the corresponding balances on December 31/20:
| Preferred shares outstanding: 33,000 shares | $ | 660,000 | |
| Common shares outstanding: 34,000 shares | 2,380,000 | ||
| Retained earnings | 989,200 |
a) Assuming that the directors decide to declare total dividends in the amount of $494,600, 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 $1.40 per share.
b) Assuming that the directors decide to declare total dividends in the amount of $494,600, determine how much each class of shares should receive if the preferred shares are non–cumulative and are participating in distributions in excess of a 9% dividend rate on the common shares. Note that one year’s dividends are in arrears on the preferred shares, which pay a dividend of $1.40 per share.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Flint Limited’s ledger shows the following balances on December
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Preferred shares outstanding: 15,000 shares
$
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Common shares outstanding: 38,000 shares
2,698,000
Retained earnings
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a) Assuming that the directors decide to declare total dividends
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Exercise 15-6 Flounder Limited’s ledger shows the following balances on December 31, 2017: Preferred shares outstanding:...
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is partially correct. Try again. Assuming that the directors decide
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dividends are in arrears on...
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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...
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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...
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
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year‘s dividends are in arrears on the preferred stock.
(a) The preferred stock is cumulative and fully...
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...
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...
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...
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...
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