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redcoyote294Lv1
28 Sep 2019
Helifex , Inc. began operations in 2010 and has the following Capital Stock: Helifex , Inc. Capital Stock: Preferred Stock: # Shares Stated Dividend Rate Par value Authorized shares of cumulative, non-participatory preferred stock 80,000 6% $10 Issued shares of prefered stock 60,000 Outstanding shares of preferred stock 30,000 Common Stock: # Shares Authorized shares of $1 par value common stock 50,000 Issued shares of common stock 40,000 Outstanding shares of common stock 10,000 Required: a) Compute the amount of Preferred Stock dividends. b) On January 1, 2017, the Board of Directors declared dividends of $ 35,000 Prepare the journal entry for the declaration of the dividends. c) On March 31, 2017, the dividends are disbursed to stockholders of record. Determine the allocation of dividends to Preferred and Common Stockholders. d) The Board of directors did not declare dividends during 2018. Determine the allocation of dividends to Preferred and Common Stockholders. Total dividends for Preferred Stockholders Total dividends for Common Stockholders e) On June 8, 2019 the Board of Directors declared dividends of $110,000 Determine the allocation of dividends to Preferred and Common Stockholders. f) The following year, on November 30, 2020, the board declared dividends of $100,000 Determine the allocation of dividends to Preferred and Common stockholders. g) Explain the advantages and disadvantages of investing in preferred stock.
Helifex , Inc. began operations in 2010 and has the following Capital Stock: | |||||
Helifex , Inc. Capital Stock: | |||||
Preferred Stock: | # Shares | Stated Dividend Rate | Par value | ||
Authorized shares of cumulative, non-participatory preferred stock | 80,000 | 6% | $10 | ||
Issued shares of prefered stock | 60,000 | ||||
Outstanding shares of preferred stock | 30,000 | ||||
Common Stock: | # Shares | ||||
Authorized shares of $1 par value common stock | 50,000 | ||||
Issued shares of common stock | 40,000 | ||||
Outstanding shares of common stock | 10,000 | ||||
Required: | |||||
a) | Compute the amount of Preferred Stock dividends. | ||||
b) | On January 1, 2017, the Board of Directors declared dividends of | $ 35,000 | |||
Prepare the journal entry for the declaration of the dividends. | |||||
c) | On March 31, 2017, the dividends are disbursed to stockholders of record. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
d) | The Board of directors did not declare dividends during 2018. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
Total dividends for Preferred Stockholders | |||||
Total dividends for Common Stockholders | |||||
e) | On June 8, 2019 the Board of Directors declared dividends of | $110,000 | |||
Determine the allocation of dividends to Preferred and Common Stockholders. | |||||
f) | The following year, on November 30, 2020, the board declared dividends of | $100,000 | |||
Determine the allocation of dividends to Preferred and Common stockholders. | |||||
g) | Explain the advantages and disadvantages of investing in preferred stock. |
15 Mar 2024
Beverley SmithLv2
28 Sep 2019
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