Question

1.

Dividends Per Share

Oceanic Company has 20,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends:

Year 1	$45,000
Year 2	12,000
Year 3	90,000

Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

	Year 1	Year 2	Year 3
Preferred stock (Dividends per share)	$	$	$
Common stock (Dividends per share)	$	$	$

2.  

Entries for Issuing Stock

On January 22, Muir Corporation issued for cash 15,000 shares of no-par common stock at $25. On February 14, Muir issued at par 5,000 shares of 6%, $75 par preferred stock for cash. On August 30, Muir Corporation issued for cash 12,000 shares of preferred 6% stock, $75 par at $84.

Journalize the entries to record the January 22, February 14, and August 30 transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 22
Feb. 14
Aug. 30

3. Entries for Issuing Par Stock

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 120,000 shares of $4 par common stock at $7, and on November 19, it issued for cash 20,000 shares of $10 par preferred stock at $34.

a. Journalize the entries for October 31 and November 19.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Oct. 31
Nov. 19

b. What is the total amount invested (total paid-in capital) by all stockholders as of November 19?
$

Answer 1

Number of preferred shares				20000
Par value of Preferred Share				50
Par value of Preferred share capital				1000000
Rate of Annual dividend				3%
Annual preferred dividend				30000
Year-1
Total dividend				45000
Less: Preferred dividend				30000
Common Dividend				15000
Per share dividend:
Preferred (30000/20000)			1.5	per share
Common (15000/50000)			0.3	per share
Year2
Total Dividend				12000
Preferred dividend				12000
Common Dividend				0
The Whole amount is paid ass preferred dividend and the dividend in arrears is $18000
Preferred dividend per share paid (12000/20000): $ 0.60 per shares
Year3
Total dividend				90000
Less: Preferred dividend (30000+18000)				48000
Common Dividend				42000
Per share dividend:
Preferred Dividend (48000/20000)				2.4	per share
Common Dividend (42000/50000)				0.84	per share
			Year1	Year2	Year3
Preferred Dividend per share			1.5	0.6	2.4
Common Dividend per share			0.3	0	0.84