Calculating the CS and PS Dividends for a Company Shareholders Equity Share Capital $5 PS, Cumulative 5,000
Question:
Calculating the CS and PS Dividends for a Company
Shareholders’ Equity Share Capital $5 PS, Cumulative
5,000 shares authorized, 2,500 shares issued $2,500,000
Common Shares, 100,000 shares authorized, 5,000 issued $100,000
Total Share Capital 2,600,000
Retained Earnings 300,000
Total Shareholders’ Equity $2,900,000
On October 10, 2014, Amazon declared an $85,000 Dividend to be paid Nov. 10 to shareholders of record, October 31. Show your work when answering the following questions
a) What would be the total PS Dividend paid?
b) What would be the CS Dividend paid?
c) What would be the dividend per common share paid?
d) What dividend would have been paid to PS if no dividends in arrears existed?
Prior Period Error If inventory was overstated by 20,000 in the previous year. Income tax rate is 25%. What would the adjusting entry be this year?
At what amount is the CS account debited when shares are reacquired by the corporation?
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward