QUESTION Chapter 14 Flex Tech is a technology based in Halifax, NS that created an app geared towards gyms and other fitness centres. The app allows the gyms to upload their fitness class schedules, and customers can register for the classes they want. Customers can also purchase memberships through the app, or book individual studio time. Flex Tech issued preferred and common shares to finance their operations a few years ago. They have asked you, CPA, to help with some of the accounting issues. Here are some of your notes from your meeting with Flex Tech: O Preferred shares, no-par, $0.70 per share; 12,000 shares outstanding. Common shares, no-par, 36,000 shares outstanding. In the past two years, annual dividends paid were $4,000 and 8,000 respectively. Preferred shares are cumulative and non-participating. If applicable, the matching dividend per common share is $1. Some of the common shareholders are annoyed that they haven't received any dividends yet. They would like you to explain why this is the case. . Flex Tech wants to pay $24,000 in dividends to their shareholders this year and want you to determine the amount of dividends that should be paid to each share class. Flex Tech has also asked if Retained Earnings will be impacted on the payment date of the dividends. ASSESS the Situation: maximum 2 sentences ANALYZE Major Issues: maximum 6 sentences CONLUDE: maximum 2 sentences, plus journal entries, if applicable & ADVISE: maximum 2 sentences QUESTION Chapter 14 Flex Tech is a technology based in Halifax, NS that created an app geared towards gyms and other fitness centres. The app allows the gyms to upload their fitness class schedules, and customers can register for the classes they want. Customers can also purchase memberships through the app, or book individual studio time. Flex Tech issued preferred and common shares to finance their operations a few years ago. They have asked you, CPA, to help with some of the accounting issues. Here are some of your notes from your meeting with Flex Tech: O Preferred shares, no-par, $0.70 per share; 12,000 shares outstanding. Common shares, no-par, 36,000 shares outstanding. In the past two years, annual dividends paid were $4,000 and 8,000 respectively. Preferred shares are cumulative and non-participating. If applicable, the matching dividend per common share is $1. Some of the common shareholders are annoyed that they haven't received any dividends yet. They would like you to explain why this is the case. . Flex Tech wants to pay $24,000 in dividends to their shareholders this year and want you to determine the amount of dividends that should be paid to each share class. Flex Tech has also asked if Retained Earnings will be impacted on the payment date of the dividends. ASSESS the Situation: maximum 2 sentences ANALYZE Major Issues: maximum 6 sentences CONLUDE: maximum 2 sentences, plus journal entries, if applicable & ADVISE: maximum 2 sentences
