Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares.

Steve purchased 300 shares of Delta stock on May 9. On May 15, he purchased another 300 shares and then on May 22 he purchased a final 400 shares of Delta shares. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Delta shares?

Solutions

Expert Solution

Dividend income = (Shares purchase on May 9 + Share purchase on May 15) * Dividend

= (300 + 300) * $1.60

= $960

{Steven eligible for dividend on the stock on May 9 and May 15. Those purchase May 22 will not receive because they were not 2 working days before declaring the dividend or which is after the record date of May 23.)

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Acct 301B: On 9/2, a company purchases 400 shares of its own stock at $14. It...

Acct 301B: On 9/2, a company purchases 400 shares of its own stock at $14. It resells 200 shares at $15 on 9/3 and purchases an additional 300 shares on 9/4 at $14. On 9/5 the company resells 450 shares at $9. Q.23/ What is the entries made on dates? Q.24/ Assume instead that on 9/2 and 9/4 the company purchased its stock at $15. What is the entry? What would happen to Retained Earnings on 9/5?

Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 56.26 per share using the...

Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 56.26 per share using the prevailing minimum initial margin requirement of 60 % . She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6 -month holding period, the stock paid $ 1.63 per share in cash dividends. Marlene was charged 7.2 % annual interest on the margin loan. The minimum maintenance margin was 25 %...

On January 22, Shamrock Corporation issued for cash 15,000 shares of no-par common stock at $15....

On January 22, Shamrock Corporation issued for cash 15,000 shares of no-par common stock at $15. On February 14, Shamrock issued at par value 2,000 shares of preferred 6% stock, $60 par for cash. On August 30, Shamrock issued for cash 25,000 shares of preferred 6% stock, $60 par at $67. Journalize the entries to record the January 22, February 14, and August 30 transactions. If an amount box does not require an entry, leave it blank. Jan. 22 Feb....

Leia purchased 1000 shares of stock in Wookie World for $22 per share on November 4,...

Leia purchased 1000 shares of stock in Wookie World for $22 per share on November 4, 2016. Slowly but surely the fair market value of the stock rose over the next couple of years. On June 7, 2019 Leia sold fifty percent (50%) of her shares in Wookie World for $57 per share. On July 12, 2019 Leia bought 200 shares of Light Sabers Enterprises Inc. (LSEI) for $19 per share but sold them on July 24, 2019 for $18...

Supplemental Problem 15-2 Beekley Company issued 300 shares of $10 par common stock and 100 shares...

Supplemental Problem 15-2 Beekley Company issued 300 shares of $10 par common stock and 100 shares of $50 par preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share and the preferred stock has a market value of $90 per share. Prepare the journal entry to record the issuance. Prepare the journal entry to record the issuance assuming the preferred stock has no market price.

You purchased 300 shares of General Electric stock at a price of $61.09 four years ago....

You purchased 300 shares of General Electric stock at a price of $61.09 four years ago. You sold all stocks today for $64.34. During that period the stock paid dividends of $1.92 per share. What is your annualized holding period return (annual percentage rate)

The last day shares of stock purchased on May 8, 2018 could be sold and receive...

The last day shares of stock purchased on May 8, 2018 could be sold and receive short term gain or loss treatment is:

Exercise 15-9 Kingbird Corporation has 11,600 shares of $100 par value, 9%, preferred stock and 48,200...

Exercise 15-9 Kingbird Corporation has 11,600 shares of $100 par value, 9%, preferred stock and 48,200 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears $ How should these dividends be reported?...

On May 4, 2019, Docker Inc. purchased 850 shares of its own common stock in the...

On May 4, 2019, Docker Inc. purchased 850 shares of its own common stock in the market at a price of $18.50 per share. On September 19, 2019, 500 of these shares were sold in the open market at a price of $20.20 per share. There were 35,000 shares of Docker common stock outstanding prior to the May 4 purchase of treasury stock. A $0.35 per share cash dividend on the common stock was declared and paid on June 15,...

Joe owns 1,500 shares of Eagle, Inc. stock that he purchased over ten years ago for...

Joe owns 1,500 shares of Eagle, Inc. stock that he purchased over ten years ago for $80,000. Although the stock has a current market value of $52,000, same still views the stock as being a solid long-term investment. He has sold other stock during the year with overall gains of $30,000, so he would like to sell the Eagle stock and offset the $28,000 loss against these gains - but somehow keep his Eagle investment. He has devised a plan...

Subjects