Question
1.During 2004 through 2007, Best Corporation had the following issuances of stock outstanding for the entire period: 5,000 shares of 10%, $50 par, preferred stock
1.During 2004 through 2007, Best Corporation had the following issuances of stock outstanding for the entire period:
5,000 shares of 10%, $50 par, preferred stock
50,000 shares of $10 par common stock
Cash dividends declared by the board of directors during 2004 to 2007 were as follows:
2004$-0-
2005$40,000
2006$50,000
2007$75,000
Compute the amount of total dividends payable to each class of stock during 2004 to 2007 by treating the preferred stock as:
a)cumulative
b)non-cumulative
Use the charts below for your answer and be sure to show all of your calculations to receive full credit.
a)cumulative
Year
Total PreferredDividend
Total CommonDividend
Total
2004
2005
2006
2007
b)non-cumulative
Year
Total PreferredDividend
Total CommonDividend
Total
2004
2005
2006
2007
Financial Accounting
Final Exam
Page2
2.Daniels Corporation reports the following transactions for 2012:
Jan. 10Sold 5,000 shares of 9% non-cumulative $50 par, preferred stock for $85 per share.
Feb. 19Sold 3,000 shares of $10 par common stock for $12 per share.
Oct. 12Declared a 15% stock dividend on the common stock.The current market price of the common stock is $15 per share.Daniels "Corporation has 100,000 shares of common stock outstanding on October 12.
Nov.15Distributed the stock dividend declared on October 12.
Dec. 15Declared the annual dividend required on the preferred stock and a $.50 per share dividend on the common stock.Daniels Corporation currently has 20,000 shares of preferred stock outstanding.
Prepare journal entries for the above transactions.Use the explanation portion of each journal entry to show your work.
Date
Accounts
Debit
Credit
Financial Accounting
Final Exam
Page3
3.Anderson Corporation reports the following Stockholders' Equity on its Balance Sheet as of December 31, 2012:
Stockholders' Equity
Preferred 5% Stock, $50 par (100,000 shares authorized,
25,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . $1,250,000
Paid-In Capital in Excess of Par - Preferred Stock . . . . . .250,000$1,500,000
Common Stock, $1 par (1,000,000 shares authorized,
150,000 shares issued). . . . . . . . . . . . . . . . . . . . . .150,000
Paid-In Capital in Excess of Par - Common Stock . . . . . .100,000250,000$1,750,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,550,000
Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . .$4,300,000
The Board of Directors for Anderson Corporation declared a 3-for-1 common stock split. Below you are to correctly rewrite the Stockholders' Equity portion of Anderson Corporation's Balance Sheet after the stock split.
Stockholders' Equity
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