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Please help with 2 and 3. Thank you! 2. ABC, Inc. has 4,000 shares of 6%, $50 par value cumulative preferred stock issued at the
Please help with 2 and 3. Thank you!
2. ABC, Inc. has 4,000 shares of 6%, $50 par value cumulative preferred stock issued at the beginning of 2016 and 200 shares of cumulative preferred Treasury Stock. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2016. The company plans to pay total dividends of $20,000 in 2017. How much of the $20,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2017? Com Div Pd Div in Arrears Pd Div in Arrears Pref Div Pd 2016 2017 Beg Retained Eanings + Net Income Net Loss Dividends= End Retained Earnings Beg Stk Bal+ Issuance of Stock + Beg Ret Ean + Net Inc - Net Loss-Div= End Stkhldrs Eq End Stkhldrs Eq Beg Stkhldrs Eq + Issuance of Stock+ Net Inc- Net Loss- Div Shares Outstanding Shares Issued - Shares of Treas Stk Dividends based on Shares OUTSTANDING 3. ABC, Inc. started 2017 with $345,000 in Contributed Capital and $278,000 in Retained Earnings. During 2017, ABC issued $98,000 in stock, issued Notes Payable of $100,000, earned an income of $62,000 and paid dividends of $7,000. a. What is the Ending balance in Retained Earnings? What is the Ending balance in Stockholders' Equity? bStep by Step Solution
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