1. Dividends Per Share Oceanic Company has 20,000 shares of cumulative preferred
ID: 2329228 • Letter: 1
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:
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'.
$
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.
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.
b. What is the total amount invested (total paid-in capital) by all stockholders as of November 19?
$
Explanation / Answer
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
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.