Question
HorizonHorizon Communications has the following stockholders' equity on DecemberDecember 3131, 20162016: LOADING... (Click on the icon to view the stockholders' equity) Stockholders' Equity Paid-In Capital:
HorizonHorizon
Communications has the following stockholders' equity on
DecemberDecember
3131,
20162016:
LOADING...
(Click on the icon to view the stockholders' equity)
Stockholders' Equity
Paid-In Capital:
Preferred Stock4%, $11 Par Value; 150,000 shares
authorized, 22,000 shares issued and outstanding
$242,000
Common Stock$4 Par Value; 575,000 shares
authorized, 350,000 shares issued and outstanding
1,400,000
Paid-In Capital in Excess of ParCommon
1,050,000
Total Paid-In Capital
2,692,000
Retained Earnings
220,000
Total Stockholders' Equity
$2,912,000
Requirements
1. | Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 20162016 and20172017 if total dividends are$ 7 comma 680$7,680 in20162016 and$ 49 comma 000$49,000 in20172017. Assume no changes in preferred stock and common stock in20172017. |
2. | Record the journal entries for 20162016, assuming thatHorizonHorizon Communications declared the dividend on December 1 for stockholders of record on December 10.HorizonHorizon Communications paid the dividend on December 20. |
Requirement 1. Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for
20162016
and
20172017
if total dividends are
$ 7 comma 680$7,680
in
20162016
and
$ 49 comma 000$49,000
in
20172017.
Assume no changes in preferred stock and common stock in
20172017.
(Assume all preferred dividends have been paid prior to
20162016.
Complete all input boxes. Enter a "0" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.)
HorizonHorizon's
20162016
dividend would be divided between preferred and common stockholders in this manner:
Total Dividend2016 |
| $7,680 |
Dividend to preferred stockholders: |
| |
Dividend in arrears | $0 |
|
Current year dividend | 9,680 |
|
Total dividend to preferred stockholders | (7,680) | |
Dividend to common stockholders |
| $0 |
HorizonHorizon's
20172017
dividend would be divided between preferred and common stockholders in this manner:
Total Dividend2017 |
|
|
Dividend to preferred stockholders: |
| |
Dividend in arrears |
|
|
Current year dividend |
|
|
Total dividend to preferred stockholders |
| |
Dividend to common stockholders |
|
|
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