5, Milton Corporationhas 20,000 shares of $5par-value common stock and 60,000 sh

Question

5, Milton Corporationhas 20,000 shares of $5par-value common stock and 60,000 shares of9%,$2 par value prefered stock issued and outstanding. The prefered stockis cumulative. How much are prefered dividends per year? $10,800 $120,000 $100,000 $9,000 6. Media Services' accountingrecords reflected the following joumal entry: Nov. 1 Cash 14,000 Common Stock (S1 Par) Paid-in Capitalin Excess of 2,000 Par Value 12,000 From the entry, one can conclude that the company: eamed $14,000 ofrevenue. has a $12,000 gain on the sale ofits stock. has a S12,000 increase in totalpaid-in capital. sold 2,000 shares ofcommon stock at $7per share. d. 7. Howis treasury stock shown in the financial statements? As an asset. As a reduction ofpaid-in capital. As a reduction of totalstockholders' equity It depends on the reason that the treasury stock was acquired. d. 8. Prost Products has excelled onpast treasury stock transactions, selling the stock at above cost resulting in a balance ofS1,250 in Paid in Capital from Treasury Stock account. Currently, the company is holding 460 shares ofits $2 par-value common stock, reacquired for $2,000. If the stock is reissued for $500, what joumal entry wil the company's accountant make? Cash 500 Treasury Stock 500 Cash Loss on Treasury Stock 500 1,500 Treasury Stock 2,000 Cash Paid-in Capital from Treasury Stock 500 1,500 Treasury Stock 2,000 Cash Paid-in Capital from Treasury Retained Eamings 500 1,250 250 Stock Treasury Stock 2,000 9. The following joumal entry was found in the accountingrecords of the Sullivan Corp RetainedEamings 10,000 Dividends payable 10,000 On what date would the entry have beenmade? Date of declaration. Date ofrecord. Ex-dividend date. Date ofpayment. d.

Explanation / Answer

Q5.

Answer is A. $10,800

The explanation is as follows:

PreferredStock : 60,000 shares

Par value per share = $ 2 per share

Preferred Stock Capital (60,000 share *2) = $120,000

Rate of Dividend: 9%

Annual Preferred Dividend ($120,000 *9%) = $ 10,800

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.