The 2017 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The 2017 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $120.4 million in 2017. It also declared and paid dividends on common shares in the amount of $2.50 per share. During 2017, Sneer had 1,000,000,000 common shares authorized; 388,070,300 shares had been issued. The balance in Retained Earnings was $1,559 million on December 31, 2016, and 2017 Net Income was $863 million. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not millions.) OAnswer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 а-1. Dividends declared 120,400,000 Dividends payable 120,400,000 Dividends payable 120,400,000 2 а-2. Cash 120,400,000 O b-1. Dividends declared O1,529,824,250 X 1,529,824,250 3 Dividends payable 1,529,824,250 x b-2. Dividends payable O x 1,529,824,250 4 Cash 1,529,824,250 X 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31, 2017. (Amount to be deducted should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. SNEER CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2017 (in millions) Retained Earnings, January 1, 2017 $ 1,559,000,000.0 x Net income 863,000,000.0 X Dividend declared on preferred shares (120,400,000.0) X Dividend declared on common shares O(1,529,824,250.0) X Retained Earnings, December 31, 2017 $ 771,775,750.0 The 2017 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $120.4 million in 2017. It also declared and paid dividends on common shares in the amount of $2.50 per share. During 2017, Sneer had 1,000,000,000 common shares authorized; 388,070,300 shares had been issued. The balance in Retained Earnings was $1,559 million on December 31, 2016, and 2017 Net Income was $863 million. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not millions.) OAnswer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 а-1. Dividends declared 120,400,000 Dividends payable 120,400,000 Dividends payable 120,400,000 2 а-2. Cash 120,400,000 O b-1. Dividends declared O1,529,824,250 X 1,529,824,250 3 Dividends payable 1,529,824,250 x b-2. Dividends payable O x 1,529,824,250 4 Cash 1,529,824,250 X 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31, 2017. (Amount to be deducted should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place.) Answer is complete but not entirely correct. SNEER CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2017 (in millions) Retained Earnings, January 1, 2017 $ 1,559,000,000.0 x Net income 863,000,000.0 X Dividend declared on preferred shares (120,400,000.0) X Dividend declared on common shares O(1,529,824,250.0) X Retained Earnings, December 31, 2017 $ 771,775,750.0
Expert Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these finance questions
-
The 2017 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $119.9 million in 2017. It also declared and paid dividends on common...
-
The 2012 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $100,000 in 2012. It also declared and paid dividends on common stock in...
-
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $ 100,000 in the current year. It also declared and paid dividends on common...
-
Calculate the investment return, BAR, and ALPHA of the following investment, all over one year. Market return .12 or 12% investment in Tesla stock, $15000 , then sold at end of year for $32000, bet...
-
A gasoline engine burns fuel that releases 3.3 x 108 J of heat per hour. (a) What is the energy input during a 2.0-h period? (b) If the engine delivers 25 kW of power during this time, what is its...
-
Reconsider Prob. 397. Solve the problem using EES (or other) software. Again using the EES, compare the temperature of water for the three cases at constant specific volume over the pressure range of...
-
After operating for a month, Shawn Andrews dental practice completed the following transactions during July: Using the steps outlined in the five-step transaction analysis, record the transactions in...
-
Refer to the Professional Judgment in Context feature "Thor Industries, Inc. and Mark Schwartzhoff: Fraudulent Reductions in Cost of Goods Sold Through Manipulation of Inventory Accounts." Answer the...
-
This case is concerning an employee's request for alternate work arrangements to accommodate her breastfeeding provides useful insight into the extent to which employers must accommodate their...
-
The strength of an item is known to be normally distributed with an unknown mean and unknown variance \({ }^{2}\). A random sample of ten items is taken and their strength measured. The strengths...
-
Imagine you discover a yeast mutant that exhibits a general inability to grow and thrive compared to wild-type yeast. You predict that the mutant has a defect in a basic process necessary for...
-
What is working capital? Why is working capital important? Telstra Limited, the largest telecommunication company in Australia, is subject to a flat corporate tax rate of 30% and has 1,000,000...
-
Use the following information for the remainder of the questions. Dan has finally decided to create his own product line of cat related items hosted at his new business the Cat Empurrium. Dan wants...
-
At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a four- year, noninterest-bearing note in the face amount of $8 million. The note is payable in...
-
Which type of science seeks to expand knowledge regardless of the short - term application of that knowledge?
-
How do Methodological approaches adapt to the evolving nature of research paradigms and technological advancements, and what implications do these adaptations have for the validity and reliability of...
-
You have $40,000 to invest. You are thinking of either buying 1,337 shares of Ford stock for $29.91 each, or buying 17,467 call options on Ford stock that expire in six months, have an exercise price...
-
Describe the Operations (+,,*,/) that can cause negligible addition (NA), error magnification (EM), or subtractive cancellation (SC) in calculating ?((x^2)+1) - x . Give the range of where they might...
-
Nicole has decided that she is going to start her business, Nicoles Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April...
-
Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $ 9,300. When purchased, the patent had...
-
Given the transactions in M2- 9 (including the sample), prepare a classified balance sheet for Spot-lighter, Inc., as of January 31. a. (Sample) Borrowed $ 3,940 from a local bank on a note due in...
-
\(Y\) is distributed \(N(5,100)\), and you want to calculate \(\operatorname{Pr}(Y <3.6)\). Unfortunately, you do not have your textbook, and do not have access to a normal probability table like...
-
The random variable \(Y\) has a mean of 1 and a variance of 4. Let \(Z=\frac{1}{2}(Y-1)\). Show that \(\mu_{Z}=0\) and \(\sigma_{Z}^{2}=1\).
-
Compute the following probabilities: a. If \(Y\) is distributed \(t_{15}\), find \(\operatorname{Pr}(Y>1.75)\). b. If \(Y\) is distributed \(t_{90}\), find \(\operatorname{Pr}(-1.99 \leq Y \leq...
Study smarter with the SolutionInn App