Bradford Co. Ltd. Shareholders\' Equity Preference shares, 12%, SI par, 50,000 s
ID: 2565297 • Letter: B
Question
Bradford Co. Ltd. Shareholders' Equity Preference shares, 12%, SI par, 50,000 shares authorized Ordinary shares, S2 par, 30,000 shares authorized Share premium: Ordinary shares Retained earnings $50,000 46,000 50,000 30,000 $176,000 5,000 Less: Treasury shares (500 ordinary shares at cost) Total Shareholders' Equity S171,000 Answer the following questions for Bradford Company No. of shares a. How many ordinary shares are issued? b. How many preference shares are issued? c.How many ordinary shares are issued and outstanding? d. How many preference shares are issued and outstanding? e. How many of the ordinary shares are eligible for dividends when dividend is declared and paid? How many of the preference shares are eligible for dividends if dividends is declared and paid? What is the issued price of the preference shares What is the cost of the treasury shares acquired? f. h.Explanation / Answer
Answer a.
Value of Ordinary Shares = $46,000
Par Value of Ordinary Shares = $2
Number of Ordinary Shares Issued = Value of Ordinary Shares / Par Value of Ordinary Shares
Number of Ordinary Shares Issued = $46,000 / $2
Number of Ordinary Shares Issued = 23,000
Answer b.
Value of Preferred Shares = $50,000
Par Value of Preferred Shares = $1
Number of Preferred Shares Issued = Value of Preferred Shares / Par Value of Preferred Shares
Number of Preferred Shares Issued = $50,000 / $1
Number of Preferred Shares Issued = 50,000
Answer c.
Number of Ordinary Shares issued = 23,000
Number of treasury shares = 500
Number of ordinary shares outstanding = Number of Ordinary Shares issued - Number of treasury shares
Number of ordinary shares outstanding = 23,000 - 500
Number of ordinary shares outstanding = 22,500
Answer d.
Number of Preferred shares outstanding = Number of preferred stock issued
Number of Preferred shares outstanding = 50,000
Answer e.
Number of ordinary shares eligible for dividends = Number of ordinary shares outstanding
Number of ordinary shares eligible for dividends = 22,500
Answer f.
Number of preferred shares eligible for dividends = Number of preferred shares outstanding
Number of preferred shares eligible for dividends = 50,000
Answer g.
Issued price of preferred shares = $1 per share
Answer h.
Number of treasury shares = 500
500 ordinary shares were repurchased for $5,000.
So, cost of treasury stock is $5,000
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