Dividends on Preferred and Common Stock Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $24,750; 20Y2, $10,750; 20Y3, $117,000; 20Y4, $92,500; 20Y5, $117,500; and 20Y6, $132,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0". Preferred Dividends Common Dividend Total Year Dividends Total Per Share Total Per Share 20Y1 $24,750 20Y2 10,750 20Y3 117,000 20Y4 92,500 20Y5 117,500 20Y6 132,500 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock per share Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (A) for preferred stock and (B) for common stock. Round your answers to two decimal places. Preferred stock Common stock -Stock transaction for corporate expansion Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Pulsar Optics on April 30 of the current year as follows: Preferred 4% Stock, $50 par (500,000 shares authorized, 90,000 shares issued) $4,500,000 Paid-In Capital in Excess of Par-Preferred Stock 720,000 Common Stock, $100 par (700,000 shares authorized, 220,000 shares issued) 22,000,000 Paid-In Capital in Excess of Par-Common Stock 1,760,000 Retained Earnings 44,000,000 At the annual stockholders' meeting on August 5, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $16,275,000. The plan provided (a) that the corporation borrow $4,300,000 (b) that $65,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at 3,400,000 and the land on which it is located, valued at 5,000,000 be acquired in accordance with preliminary negotiations by the issuance of 80,000. shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Oct. 9. Borrowed $4,300,000 from St. Peter City Bank, giving a 4% mortgage note. Oct. 17. Issued 65,000 shares of preferred stock, receiving $55 per share in cash. Oct. 28. Issued 80,000 shares of common stock in exchange for land and a building, according to the plan. Required: Journalize the entries to record the October transactions. If an amount box does not require an entry, leave it blank. Oct. 9 Oct. 17 0000 000 OC 0000 000 OC Oct. 28Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $125 par (50,000 shares authorized, 25,000 shares issued) $3,125,000 Paid-In Capital in Excess of Par-Preferred Stock 500,000 Common Stock, $20 par (600,000 shares authorized, 230,000 shares issued) 4,600,000 Paid-In Capital in Excess of Par-Common Stock 600,000 Retained Earnings 18,709,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 36,000 shares of treasury common for $25 per share. b. Sold 18,000 shares of treasury common for $28 per share. c. Issued 13,000 shares of preferred 2% stock at $141. 1. Issued 60,000 shares of common stock at $27, receiving cash. e. Sold 12,000 shares of treasury common for $23 per share. f. Declared cash dividends of $2.50 per share on preferred stock and $0.06 per share on common stock. 9. Paid the cash dividends. Required: Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. 00 10 10 101 010 100 010Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $47,520. Date Account Debit Credit Jan. 15 Mar. 15. Sold all of the treasury stock for $18 per share. Date Account Debit Credit Mar. 15 Apr. 13. Issued 85,000 shares of common stock for $1,360,000 Date Account Debit Credit Apr. 13 June 14. Declared a 4% on common stock, to be capitalized at the market price of the stock, which is $18 per share. Date Account Debit Credit June 14July 16. Issued stock for stock dividend declared on June 14. Date Account Debit Credit |July 16 Oct. 30. Purchased 28,000 shares of treasury stock for $20 per share. Date Account Debit Credit Oct. 30 Dec. 30. Declared a $0.15-per-share dividend on common stock. Date Account Debit credit Dec. 30 Dec. 31. Closed the two dividends accounts to Retained Earnings. Date Account Debit Credit Dec. 31 3. Prepare a statement of stockholders' equity for the year ended December 31, 20Y1. Assume that net income was $10,390,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter "0".3. Prepare a statement of stockholders' equity for the year ended December 31, 20Y1. Assume that net income was $10,390,000 for the year ended December 31, 20Y1. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank or enter "0". Nav-Go Enterprises Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y1 Paid-In Capital in Paid-In Excess of Capital from Sale of Retained Treasury Common Stock Stated Value Treasury Stock Earnings Stock Total $ 4. Prepare the "Stockholders' Equity" section of the December 31, 20Y1, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Nav-Go Enterprises Inc. Balance Sheet December 31, 20Y1 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Total Stockholders' EquityEntries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders' equity accounts, with balances on January 1, 20Y1, are as follows: Common Stock, $10 stated value (650,000 shares authorized, 440,000 shares issued) $4,400,000 Paid-In Capital in Excess of Stated Value-Common Stock 850,000 Retained Earnings 9,990,000 Treasury Stock (44,000 shares, at cost) 560,000 The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $47,520. Mar. 15. Sold all of the treasury stock for $18 per share. Apr. 13. Issued 85,000 shares of common stock for $1,360,000. June 14. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. July 16. Issued shares of stock for the stock dividend declared on June 14. Oct. 30. Purchased 28,000 shares of treasury stock for $20 per share. Dec. 30. Declared a $0.15-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate. If required, round to one decimal place. Common Stock Jan. 1 Bal. 4,400,000 Dec. 31 Bal. Paid-In Capital in Excess of Stated Value-Common Stock Jan. 1 Bal. 850,000 Dec. 31 Bal. Retained Earnings Jan. 1 Bal. 9,990,000 Dec. 31 Bal. Treasury Stock Jan. 1 Bal. 560,000 Dec. 31 Bal