On January 1, Armada Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred
Apr 1 Issued 15,000 additional shares of common stock for $17 per share.
June 15 Declared a cash dividend of $ 1 per share to stockholders of record on June 30.
July 10 Paid the $ 1 cash dividend.
Dec 1 Issued 2,000 additional shares of common stock for $19 per share.
15 Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31.
(a) Prepare the entries if any on each of the three dividend dates.
(b) How are dividends and dividend payable reported in the financial statement prepared at December 31?
Amez Corporation was organized on January 1, 2004. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends : 2004- $6,000, 2005 - $12,000 and 2006- $28,000.
(a) show the allocation of dividends to each class of stock assuming the preferred stock dividend is 8% and not cumulative.
(b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 9 % and cumulative.
(c) Journalize the declaration of the cash dividend at December 31, 2006 under part B.
The following information is available for Sosa Corporation for the year ended December 31, 2005: Sales $800,000; other revenue and gains $92,000; operating expenses $110,000; cost of goods sold $265.000; other expenses and losses $28,000; Preferred stock dividends %30,000. The company's tax rate was 20% and it had 50,000 shares outstanding during the entire year.
(a) Prepare a corporate income statement.
(b) Calculate earnings per share.
On January 1, 2005 Snider Corporation had the following stockholders equity accounts
Common Stock ($10 per value, 90,000 shares issued and outstanding) $900,000
Paid -in Capital in Excess of Par Value 200,000
Retained Earnings 540,000
During the year the following transaction occurred:
Jan 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15 the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2 for 1 stock split. The market price per share prior to the announcement was $17 ( the new par value is $5)
Dec 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2006
31. Determined that net income for the year was $250,000
(a) Journalize the transactions and the closing entry for net income.
(b) Enter the beginning balances and post the entries to the stockholders equity accounts.
(c) Prepare a stockholders equity section of December 31.
The stockholders equity accounts of Tracey Inc at January 1, 2005 are as follows
Preferred Stock $100 par 7% $5000,000
Current Stock $10 par 900,0000
Paid-in capital in Excess of par value
( Preferred Stock ) 100,000
Paid -in capital in Excess of Par value
(Common Stock) 200,000
Retained Earnings 500,000
There were no dividends in arrears on preferred stock. During 2005, the company had the following transactions and events:
July 1 Declared a $0.50 cash dividend on common stock.
Aug 1 Discovered a $72,000 overstatement of 2004 depreciation. Ignore income taxes.
Sept 1 Paid the cash dividend declared on July 1.
Dec 1 Declared a 10% stock dividend on common stock when the market value of the stock was $16 per share.
Dec 15 Declared a &% cash dividend on preferred stock payable January 31, 2006
Dec 31 Determined that net income for the year was $380,000.
(a) journalize the transactions and the closing entry for the net income
(b) enter the beginning balances in the accounts and post to the stockholders equity accounts.
(c) Prepare a retained earning statement for the year.
(d) Prepare a stockholders equity section at December 31, 2005.
This solution is comprised of a detailed explanation to prepare the entries if any on each of the three dividend dates and answer how are dividends and dividend payable reported in the financial statement prepared at December 31.