LID PEREM Check My Won 1. Review the definitions and relationships between authorted, ued and outstanding shares of stock 2 Review the definition of cumulative preferred dividends in arrears. When did Pranks, Inc. not pay the full amount of proferred vidends on When did they make up these amounts ? Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $30 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, 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 declared and closing entries were recorded at the end of the year. Total paid-in capital before the stock dividend 23,500,000 x Total retained earnings before the stock dividend 33,500,000 Total stockholders' equity before the stock dividend 71,900,000 X Total paid-in capital after the stock dividend Total retained earnings after the stock dividend Total stockholders' equity after the stock dividend 23,800,000 X 33,200,000 x 55,000,000 X Feedback Cho My Won Review the definitions of paid in capital, retained earnings, and stockholders' equity. Also look at how the issuance of stock dividends changes the amount Check My Wor Partially correct Previous Check My Work Save and Exit Submit Assignment for Grading All work saved. The Commy Declared Calculator Print Item Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash diwards throughout Year 6. the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in sensultant to set with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized 800,000 Number of common shares issued 650,000 Par value of common shares $20 Par value of cumulative preferred shares $30 Pald-in capital in excess of par-common stock $7,000,000 Poid-in capital in excess of par preferred stock Total retained earnings before the stock dividend is declared $33,500,000 No treasury share have been relssued. Preferred Dividends Total Cash Year Dividends Total Per Share Total 40,000 40,000 0.00 0.20 72,000 72,000 0.36 Year 3 113,000 68,000 0.34 45,000 0.15 135,000 75,000 60,000 Year 5 150,000 90,000 60,000 210,000 60,000 150,000 $0 Common Dividends Per Share 0 Year 1 0 0.00 Year 2 0.09 0.3 Year 4 0.3 0.18 0.3 0.3 Year 6 Previous Check My Work Submit Assignment for Grading