Question
Hansen Co. began business in Year1. Hansen, Co. showed the following stockholders equity section at December 31, Year2 (with certain information missing). All accounts have
Hansen Co. began business in Year1. Hansen, Co. showed the following stockholders equity section at December 31, Year2 (with certain information missing). All accounts have normal balances. Preferred stock, 6%, cumulative, par $50 10,000 shares authorized, ??? shares issued and outstanding $ 50,000 Common stock , par ??? 80,000 shares authorized 30,000 shares issued and 28,000 shares outstanding $ 300,000 Contributed capital in excess of par, common stock $ 510,000 Retained earnings $ 682,000 Treasury stock (common) $ 40,000 Assuming Hansen did not pay dividends in Year1, what amount of dividends were declared for the preferred shareholders in Year2? (The common shareholders received a $2 per share dividend for Year2.) If Hansen had a 2 for 1 common stock split on January 1, Year3, the balance in the Common Stock account would be what amount?
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