Please answer the following questions, Thanks!
Q1
Rhodes Wholesale Merchandise had 4,000 preferred shares of $5 no par value issued at $20 per share and 15,000 common shares of no par value issued at $25 per share throughout 2001. These data apply to each of the independent situations below. 1. Assuming that total dividends declared in 2001 were $35,000 and that the preferred shares are not cumulative, common shareholders should receive total 2001 dividends of $ 2. Assuming that total dividends declared in 2001 were $80,000 and that the preferred shares are cumulative with two years' preferred dividends in arrears on December 31, 2000, the preferred shareholders should receive 2001 dividends totalling $ 3. Assuming that total dividends in 2001 were $30,000 and that the preferred shares are cumulative with one years preferred dividends in arrears on December 31, 2000, the preferred shareholders should receive 2001 dividends totalling $ 4. Assuming that total dividends declared in 2001 were $45,000, that the cumulative preferred shares were issued on January 1, 2000, and that $10,000 of preferred dividends were declared and paid in 2000, the common shareholders should receive 2001 dividends totalling $ 5. Assuming that total dividends declared in 2001 were $50,000 and that the cumulative preferred stock dividends have not been paid after 1999, the common shareholders should receive total 2001 dividends of 6. Assuming that the total dividends declared in 2001 were $190,000 and that the cumulative preferred shares received dividends in the following manner: In full up to 1997, $18,000 in 1998, $4,000 in 1999, and $15,000 in 2000; common shareholders should receive total 2001 dividends of Instructions: Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred. Classifications A. Item increases B. Item decreases C. Item is unchanged D. Direction of change cannot be determined Item Event 1. Book value per share Stock dividend 2. Legal capital per common share Cash dividend 3. Total retained earnings Stock split 4. Total shareholders' equity Prior period adjustment increases last year's net income 5. Earnings per common share Restriction of retained earnings 6. Total retained earnings Change in accounting principle 7 Number of common shares issued Stock dividend 8. Total retained earnings Cash dividend 9. Total contributed capital Stock dividend 10. Legal capital per common share Stock dividend
