Question
19. Assuming that $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive? a) $ 0 b)
19. Assuming that $21,000 will be distributed as a dividend in the current year, how much will the preferred shareholders receive? a) $ 0 b) $ 8,000
c) $16,000
d) $21,000
20. The Common Shares account currently shows a balance of $200,000. Assuming that $61,000 will be distributed as a dividend in the current year, and the preferred shares are also fully participating, how much will the common shareholders receive? a) $37,000
b) $30,000
c) $31,000
d) $16,000
21. Sarajevo Ltd. currently has outstanding 20,000 no par value common shares with a carrying value of $200,000, and 10,000 no par value, $0.60, cumulative, fully participating preferred shares with a carrying value of $100,000. Dividends on the preferred shares are one year in arrears. Assuming that Sarajevo wishes to distribute $54,000 in dividends, the common shareholders will receive
a) $12,000. b) $22,000. c) $32,000. d) $42,000.
Use the following information for questions 2224.
Instanbul Corp. has outstanding 20,000 no par value, $0.80, preferred shares and 100,000 no par value common shares. Dividends have been paid every year except last year and the current year. The carrying value of the preferred shares is $200,000 and of the common shares is $300,000.
22. If the preferred shares are cumulative and non-participating and $100,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $68,000.
c) $84,000. d) $100,000.
23. If the preferred shares are noncumulative and fully participating and $70,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $42,000.
c) $46,000.
d) $54,000.
24. If the preferred shares are cumulative and fully participating and $101,000 is distributed as a dividend, the common shareholders will receive a) $0. b) $51,000.
c) $61,000. d) $69,000.
25. The December 31, 2018 condensed balance sheet of Bee Services, a proprietorship, follows:
Current assets ` Property, plant and equipment (net)
Liabilities Betty Bee, Capital
Fair values at December 31, 2018, are as follows: Current assets
Equipment Liabilities
$140,000 130,000 $270,000
$ 70,000 200,000 $270,000
$160,000 210,000 70,000
On January 1, 2019, Bee Services was incorporated as Bee-Line Ltd., with 10,000 no par value common shares issued. How much should be credited to Common Shares? a) $370,000 b) $300,000
c) $270,000 d) $200,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started