Egyptian Enterprises has both common and preferred stock. Thereare 80,000 shares of $1 par common stock outstanding and 6,000shares of $8 par, 7% cumulative preferred stock outstanding. Thecompany did not pay any dividends in 2015. Distribute dividends toeach class of stockholders using the following information:
Year
Dividends Declared
2016
$6,000
2017
$6,000
2018
$6,000
Year
Preferred
Common
2016
2017
2018
Egyptian Enterprises has both common and preferred stock. Thereare 80,000 shares of $1 par common stock outstanding and 6,000shares of $8 par, 7% cumulative preferred stock outstanding. Thecompany did not pay any dividends in 2015. Distribute dividends toeach class of stockholders using the following information:
Year | Dividends Declared |
|---|---|
2016 | $6,000 |
2017 | $6,000 |
2018 | $6,000 |
Year | Preferred | Common |
|---|---|---|
2016 | ||
2017 | ||
2018 |
Related questions
Yorkâs outstanding stock consists of 80,000 shares of noncumulative 7.0% preferred stock with a $5 par value and also 140,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
2015 total cash dividends $ 16,500
2016 total cash dividends 26,000
2017 total cash dividends 275,000
2018 total cash dividends 425,000
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)
| Par Value per Preferred Share | Dividend Rate | Dividend per Preferred Share | Number of Preferred Shares | Preferred Dividend | |
| Annual Preferred Dividend: | |||||
| Total Cash Dividend Paid | Paid to Preferred | Paid to Common | Dividends in Arrears at year-end | ||
| 2015 | $16,500 | ||||
| 2016 | 26,000 | ||||
| 2017 | 275,000 | ||||
| 2018 | 425,000 | ||||
| Total: | $742,500 | $0 | $0 |
| 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. | ||||
| Yorkâs outstanding stock consists of 50,000 shares of cumulative 7.50% preferred stock with a $10 par value and also 125,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. |
| 2015 | $ | 30,000 |
| 2016 | 31,500 | |
| 2017 | 77,500 | |
| 2018 | 117,500 | |
| Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.) |
