Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need the cash answeres jor skur aqale Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation

i need the cash answeres jor skur aqale
image text in transcribed
image text in transcribed
image text in transcribed
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 2016, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be calculated before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. The accounting manager for the company prepared the schedule of cash dividends paid over the period 20112016 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.'s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you've collected regarding its outstanding stock. Fill in the answers below. How many shares of common stock are outstanding? How many shares of preferred stock are outstanding? What is the preferred dividend as a percent of par? The company declared a 4% common stock dividend on December 1 , and would like you to calculate the following pieces of missing information. The market value of the common shares is $25.00 on December 1 , and is $30.00 on the actual distribution date of the stock, December 31. Fill in the missing information below, using the information given and your work on the other panels. All before" items are before the stock dividend was declared. All "after" items are after the stock dividend was dectared and closing entries were rocorded at the end of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Louise Crawford, Stuart Manson

7th Edition

1473760186, 9781473760189

More Books

Students also viewed these Accounting questions

Question

Divide. Check your answer. x4-3x-x + 3 x-3

Answered: 1 week ago

Question

Define broadbanding. What is the purpose of using broadbanding?

Answered: 1 week ago

Question

Distinguish between merit pay, bonus, spot bonuses, and piecework.

Answered: 1 week ago