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: 2071, $24.750; 2002, $10,500; 2013, 104,750; 2014, $90,000, 2045, 5115,000; and 2016, $135,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock. $80 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 2011. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "O". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 2011 $24.750 24,750 0.99 0 07 2012 10,500 10,500 0.42 O 0 203 104,750 0 X 0 X 2014 90,000 440,000 1.6 7 0 X 2015 115,000 40,000 1.6 0 X 2016 135,000 40,000 1.6 0 X 2. Determine the average annual dividend per share for each dass of stock for the six year period. Round your answers to two decimal places Average annual dividend for preferred stock 1.7 X per share Average annual dividend for common stock 0.40 per share 3. Assuming a market price of 5100 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 1.6 Next eBook Print Item Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises stockholders equity accounts, with balances on January 1, 2011, are as follows: Common Stock $10 stated value (500,000 shares authorized, 340,000 shares issued) $3,400,000 Paldin Capital in Excess of Stated Value-Common Stock 650,000 Retained Earnings 7,720,000 Treasury Stock (34,000 shares, at cost) 510,000 The following selected transactions occurred during the year Jan. 15. Paid cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $42,840, Mar. 15. Sold all of the treasury stock for $18 per share Apr. 13. Issued 65,000 shares of common stock for $1,170,000 June 14. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is $20 per share. July 16. Issued shares of stock for the stock dividend declared on June 14 Oct. 30. Purchasda 21,000 shares of treasury stock for $20 per share. Dec. 30. Declared a 50.17.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 accounts for the stockholders equity accounts. Record the above transactions in the accounts and provide the December 31 balance where appropriate. If required, round to one decimal place. Common Stock an 1 Bol Apr. 13 July 16 / Dec 31 Bar 3,400,000 1,170,000 x Check My Work Previous Emiratu 5eve and ESL Submit Assignment for Grading 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. Pald cash dividends of $0.14 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $42,840 Date Debit Credit Account Cash Dividends Payable Jan. 15 Cash Mar. 15. Sold all of the treasury stock for $10 per share. Date Account Debit Credit Mar. 15 Cash Treasury Stock Paldin Capital from Sale of Treasury Stock Date Debit Credit Apr. 13, issued 65,oo shares of common stock for $1,170,000 Account Apr. 13 Cash Common Stock Paldin Capital in Excess of stated Value Common Stock June 14. Declared a non common stock, to be capitalized at the market price of the stock, which is $20 per share Debit Credit Date Account Sone 14 Stock Dividende Stock Dividends Distributable Check My Work Previous book Printem DIVIDUTTO Cash Dividends 3. Prepare a statement of stockholders' equity for the year ended December 31, 2011. Assume that net income was $8,029,000 for the year ended December 31, 2011 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, 20Y Paid-In Capital in Excess of Stated Value Paid-In Capital from Sale of Treasury Stock Treasury Retained Earnings Common Stock Stock Total Balances, January 1 Issued Common Stock Net Income Cash Dividends Stock Dividendscoot Site of Treasury Stock Purchase of Treasury Stock B, December 31 4. Prepare the "Stockholders' Equity" section of the December 31, 2011, balance sheet. For those boxes in which you must enter subtracted or negative numbers use a minus sign NAVGo Knterpristne Balance sheet December 31, 20YX Stockholders' Equity eBook Print om Nav-Go Enterprises Inc. Balance Sheet December 31, 2011 Stockholders' Equity Pald-In Capital Common Stock, 510 Stated Value (500,000 Shares Authorized, 421,200 Shares issued) Excess of Test Price Over Stated Value From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (21,000 Shares, at Cost) Total Stockholders' Equity 1. Remember that the numbers from the accounts will used to prepare the set of stockholders equity and the balance sheet. As you post the journal entries it is important to work carefully Check your work to insure that you have posted the correct bors to the appropriate side of the account. Also, make sure that your account total are correct 2. The purchase of treasury stock is typically recorded using the cost method When the company resells shares of treasury Mock paydon to the price these shares are being sold for and the price originally paid to acquire these shares. On the date of declaration of a cash dividend the corporation is legally obligated to pay that dividend. When the company Gece cash or lock dividend weep in mind the previous stock transactions that have occurred, would the transactions have any wlect on the amount of the cash vidend? 3. Review the emple of the statement of stockholders' equity in the chapterPay particular attention to the treatment of dividends, and the purchase and sale of treasury stoor Rocall that the statement of stockholders uity shows the beginning balances of common stock and retained amongs. The common stock balance will be increased by any stockinued during the period and retained samnings will be increased by any nation and decreased by any net losses and dividende 4 Astockholm equity section of the balance sheet is made up of separately reported in capital, wanderings and treasury Stock Rocail that paid.in cape includes separado reporting of each das of stock. Tryck held by a corporation reduces stockholders' oly