mastery problem: corporations: organization , stock transactions, and dividends
POBL Corporations. Organization, Stock Transactions, and Dividende Pranks, Inc. Pranks, Inc. is a manufacturer of Joke and novelly products for perpetrators of practical jokes. The corporation has been cash vidends throughout Your the rantaitis declaring stock dividend to its stockholders as the calendar year-end approaches. You ve been brought in a consult to with a proces, and 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 candivere Number of common shares authorized 900.000 Number of common share issued 750,000 Par value of common shares 520 Par value of cumulative preferred shares 130 Paid-i capital in excess of our common stock $7,000,000 Paid in capital in excess of par preferred to $0 Total retained earnings before the stock dividend is declared $33,500,000 No treasury share have been reissued Preferred Dividends Common Dividends Year Per Share Per Share Total Total Cash Dividends 30,000 0 0.20 Yeart 0.00 Total 30,000 $4,000 51,000 0.36 0 0.00 Year 2 Year 54.000 105,000 0.34 0.09 54,000 90,000 0.3 0.15 Year 4 0.18 0.3 Year 5 45,000 45,000 45,000 135,000 153,000 225.000 108,000 180,000 0.3 0.3 Year 445.00u 45,000 0.3 180,000 0.3 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid trom Yow Ito Year on the ranks, Inc. part. However, one of the 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 the recent would you to determine some information from the data you've collected regarding is outstanding stock w in the following answers 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? Additional Questions 1. After completing the Cash Dividends panel, answer the following question Does Pranks, Inc. have any treasury stock? How can you tell? Pro Nest Yes, because the number of sharessed is greater than the number of shares outstanding Yes, because the number of shares authorized is greater than the rumber of shares sued. No, because the common stock cash dividend is not always zero Ne, because the preferred stock cash dividend is always greater than to Sand Suitsig for Grading Emaatruste 2. In which years has Pranks, Inc, paid cumulative preferred dividends in a Year 1 t. Year 2 Year d. Year 4 e Years Year 6 Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of information. The most December 1, and is $30 on the actual distribution date of the stock, December 31 Fall in the missing information in the following table, using the information given and your work on the other parties. All fortare Before the stock und was der Auto 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 "Total retained earnings before the stock dividend Total stockholders' equity before the stock dividend Total paid-in capital after the stock dividend Total retained earnings after the stock dividend Total stockholders' equity after the stock dividend Pro Net
