Question 2 Dividends on preferred shares

On December 31, 2014, the shareholders' equity of Finland Corporation shows the following:

Preferred shares$6, no par, 8,000 shares outstanding............... $400,000

Common sharesno par, 60,000 shares outstanding................... 800,000

Retained earnings............................................................................ 300,000

Total shareholders' equity................................................................ $1,500,000

Assume that preferred dividends were last paid on December 31, 2012, and that all of the company's retained earnings are to be paid out in dividends on December 31, 2014.

Instructions

If the preferred shares are cumulative and fully participating, how much should each class of shares receive?

Question 3 Dividends on preferred shares

In each of the following independent cases, it is assumed that the corporation has outstanding 20,000, $0.80, preferred shares, with a carrying value of $200,000, and 80,000 common shares, with a carrying value of $800,000. Although dividends have been paid regularly up to 2011, no dividends were declared in 2012 or 2013.

At December 31, 2014, the board of directors wants to distribute $125,000 in dividends. How much will the preferred shareholders receive if their shares are cumulative and non-participating?

Question 4 Issuance of shares for cash, non-cash consideration, and by subscription

Presented below is information related to Rhodesia Corp.:

1.Rhodesia is granted a charter that authorizes issuance of 100,000 no par value preferred shares and an unlimited number of no par value common shares.

2.10,000 common shares are issued for land with a fair value of $400,000.

3.3,000 preferred shares are sold for cash at $110 per share.

4.Rhodesia issues shares on a subscription basis, giving each subscriber the right to purchase 300 common shares at a price of $65 per share. Fifty individuals accept the company's offer and agree to pay 10% down and the remainder in three equal instalments.

5.The final instalment payment (for the subscriptions) is received and the shares are issued.

Instructions

Prepare the required general journal entries to record these transactions.

Question 5

At December 31, 2014, Basset Corp. had 500,000 common shares outstanding, 400,000 of which were issued and outstanding throughout the year and 100,000 of which were issued on October 1, 2014. Net income for calendar 2014, was $255,000. There are no preferred shares issued. Note in February of 2015 before the financial statements were distributed to the public this Company did a 2 for 1 stock split.Basic earnings per share for 2014 would be.

Question 6

At December 31, 2013, Mastiff Inc. had 6,000,000 common shares outstanding. An additional 1,000,000 common shares were issued on April 1, 2014, and 500,000 more on July 1, 2014. On October 1, 2014, Mastiff issued 25,000, $1,000 par value, 8% convertible bonds. Each bond is convertible into 20 common shares. No bonds were converted in 2014. What is the number of shares to be used in calculating 2014 basic earnings per share and diluted earnings per share, respectively?

Question 7

At December 31, 2013, Foxhound Ltd. had 500,000 common shares outstanding (no preferred shares issued). On September 1, 2014, an additional 200,000 common shares were issued. In addition, Foxhound had $5,000,000, 10% convertible bonds outstanding at December 31, 2013, which are convertible into 50,000 common shares; however, no bonds were converted during 2014. Net income for calendar 2014 was $1,500,000. Assuming the income tax rate was 40%, the diluted earnings per share for 2014 would be

Question 8

At December 31, 2013, Skye Inc. had 500,000 common shares outstanding (no preferred shares issued). On July 1, 2014, an additional 50,000 common shares were issued. Skye also had unexercised call options to purchase 40,000 common shares at $25 per share outstanding throughout 2014. The average market price of Skye's common shares was $20 during 2014. The number of shares that should be used in calculating diluted earnings per share for 2014 is

Please leave a detailed answer (how did u get each number and why)

Thanks