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A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 10%, 5100 par, cumulative preferred stock
A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 10%, 5100 par, cumulative preferred stock and 49,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. Enter "O" if no dividends are paid Preferred Common Dividends Total Per Share Total Per Share $22,500 30,000 42,310 At the end of the current year, Accounts Receivable has a balance of $756,160; Allowance for Doubtful Accounts has a credit balance of $6,439; and sales for the year total $2,191,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. At the end of the current year, Accounts Receivable has a balance of $145,600; Allowance for Doubtful Accounts has a debit balance of $4,104; and sales for the year total $1,084,000. Bad debt expense is estimated at 3% of sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable
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