Question

1)On January 1, 2020, Bramble Company purchased at face value, a $1210, 10% bond that pays interest on January 1. Bramble Company has a calendar year end.
The adjusting entry on December 31, 2020, is

not required

Cash	121
Interest Revenue		121

Interest Receivable	121
Debt Investments		121

Interest Receivable	121
Interest Revenue		121

2)Marigold Inc. has 5200 shares of 5%, $100 par value, cumulative preferred stock and 49200 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock?

3)

Waterway, Inc., has 9500 shares of 5%, $100 par value, noncumulative preferred stock and 95000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201500 dividend, the

A)preferred stockholders will receive the entire $201500.

b)preferred stockholders will receive $47500 and the common stockholders will receive $154000.

c)$47500 will be held as restricted retained earnings and paid out at some future date.

d)preferred stockholders will receive 1/10^th of what the common stockholders will receive.

4)

Outstanding stock of the Bramble Corporation included 19800 shares of $5 par common stock and 9900 shares of 6%, $10 par noncumulative preferred stock. In 2019, Bramble declared and paid dividends of $4200. In 2020, Bramble declared and paid dividends of $11000. How much of the 2020 dividend was distributed to preferred shareholders?

A)$6800

b)$4200

c)$5940

D)None of these answer choices are correct

5)

Outstanding stock of the Crane Corporation included 19000 shares of $5 par common stock and 4500 shares of 5%, $10 par noncumulative preferred stock. In 2019, Crane declared and paid dividends of $1500. In 2020, Crane declared and paid dividends of $5500. How much of the 2020 dividend was distributed to preferred shareholders?

1)$1500

2)$4000

3)$2250

4)None of these answer choices are correct

(you dont need to show the work just answer them)

Answer 1

Answer :

Question no-1

The adjusting entry on December 31, 2020, is

Answer -

	General journal	Debit	Credit
	Interest Receivable	$ 121
	Interest Revenue		$ 121

Question no -2

What is the annual dividend on the preferred stock?

Answer : Annual Dividend on preferred stock = 5200*$ 100* 5 % = $ 26000

Question no -3

If the board of directors declares a $201500 dividend, the

Answer :  b)preferred stockholders will receive $47500 and the common stockholders will receive $154000.

Explanation

Dividend paid to preferred stockholder = 9500* $ 100* 5% = $ 47500

Balance dividend paid to Common stockholder = $ 201500 - $ 47500 = $ 154000

Question no -4

How much of the 2020 dividend was distributed to preferred shareholders?

Answer :c)$5940

Explanation

Dividend paid to preferred stockholder = 9900* $ 10* 6% = $ 5940

In noncumulative preferred stock if company fails to pay the dividend on shares in any year then such dividend cannot be claimed by shareholder in future.

Question no -5

How much of the 2020 dividend was distributed to preferred shareholders?

Answer : 3)$2250

Explanation

Dividend paid to preferred stockholder = 4500* $ 10* 5% = $ 2250

In noncumulative preferred stock if company fails to pay the dividend on shares in any year then such dividend cannot be claimed by shareholder in future.