Baxter Corporation has 25,000 shares of $1.60 preferred stock outstanding in addition to its common stock. The $1.60 designation means that the preferred stockholders receive an annual cash dividend of $1.60 per share. In 2018, Baxter declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements. 1. How much in dividends must Baxter declare each year before the common stockholders receive any cash dividends for the year? Baxter must declare dividends of $ each year before the common stockholders receive any cash dividends for the year. Requirements - Data Table Preferred dividend (25,000 shares x 1.60 per share) $ 40,000 460,000 Common dividend (remainder: $500,000 - $40,000). Answer these questions about Baxter's cash dividends. 1. How much in dividends must Baxter declare each year before the common stockholders receive any cash dividends for the year? 2. Suppose Baxter declares cash dividends of $450,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? 3. Is Baxter's preferred stock cumulative or noncumulative? How can you tell? 4. Baxter passed the preferred dividend in 2017 and 2018. Then in 2019, Baxter declares cash dividends of $1,400,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? 500,000 Total dividend.... Print Done Supreme Bancshares has 38,000 shares of $4 par value common stock outstanding. Suppose Supreme declares and distributes a 20% stock dividend when the market value of its stock is $22 per share. 1. Journalize Supreme's declaration and distribution of the stock dividend on May 11. An explanation is not required 2. What was the overall effect of the stock dividend on Supreme's total assets? On total liabilities? On total stockholders' equity? 1. Journalize Supreme's declaration and distribution of the stock dividend on May 11. An explanation is not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit May 11 Cash Common Stock Other Equity Paid-in Capital in Excess of Par-Common Retained Earnings Cross Atlantic Publishing was recently organized as a corporation. The company issued common stock to an attorney who provided legal services worth $12,000 to help with the incorporation. Cross Atlantic also issued common stock to an inventor in exchange for her patent with a market value of $85,000. In addition, Cross Atlantic received cash both for the issuance of 1,000 shares of its preferred stock at $130 per share and for the issuance of 19,000 of its common shares at $3 per share. During the first year of operations, Cross Atlantic earned net income of $97,000 and declared a cash dividend of $22,000. Read the requirement Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions. Complete the table below by selecting the transactions that result in paid-in capital and then enter the amounts to calculate total paid-in capital for the period. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Transaction Paid-in capital Requirement x Declared dividends Earned net income Issuance of common stock for a patent Issuance of common stock for cash Issuance of common stock for legal services Issuance of preferred stock for cash 1. Without making journal entries, determine the total paid-in capital created by these transactions. Print Done