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5. AndersonCompany paid dividends at the end of each year as follows:
2012 $ 180,000
2013 $ 260,000
2014 $ 600,000
Determine the amount ofdividends per share paid on common and preferred stock for eachyear
assuming independent capitalstructures as follows:
A) Common: 300,000 shares of no- par common
Preferred: 10,000 shares of $100 par, 9% noncumulativepreferred
B) Common: 250,000 shares of no-par common
Preferred: 20,000 shares of $100 par 9% noncumulativepreferred
C) Common: 250,000 shares of no-par common
Preferred: 20,000 shares of $100 par 9% cumulativepreferred
D) Common: 250,000 shares of $1 par common
Preferred: 30,000 shares of $100 par 9% cumulativepreferred
2012 2013 2014
A) Preferred
Stock
Common
Stock
B) Preferred
Stock
Common
Stock
C) Preferred
Stock
Common
Stock
D) Preferred
Stock
Common
Stock

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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Related questions

Complete each question record transactions


Question 1

Hernandez Company had the following stock transactions duringthe year:

  1. Issued 25,000 shares of $1 par common stock for $25,000.

  2. Issued 20,000 shares of $1 par common stock for $22,000cash.

  3. Issued 22,000 shares of $1 par common stock for $21,000cash.

  4. Issued 2,000 shares of $50 par, 8% preferred stock for $100,000cash.

  5. Issued 1,000 shares of $50 par, 8% preferred stock for $49,000cash.

  6. Issued 1,000 shares of $50 par 8% preferred stock for$51,500

  7. Issued 2,500 shares of no-par common stock for $11,875 cash

  8. Issued 1,500 shares of no par 7% preferred stock for $72,000cash.


Question 2

Kris Kraft Stores had the following stock transactions duringthe year.

  1. Issued 4,000 shares of no par common stock with a stated valueof $10 per share for $40,000 cash.

  2. Issued 6,000 shares of no par common stock with a stated valueof $8 per share for $50,000 cash.

  3. Issued 5,000 shares of no par 6% preferred stock with a statedvalue of $15 per share for $75,000 cash.

  4. Issued 3,000 shares of no par 6% preferred stock with a statedvalue of $20 per share for $58,000 cash.

  5. Issued 10,000 shares of $8 par common stock with a $9 fairmarket value for a building with an uncertain fair marketvalue.

  6. Issued 10,000 shares of $5 common stock for land with a fairmarket value of $50,000.

  7. Issued 8,000 shares of $50 par, 8% preferred stock for land witha fair market value of $405,000.


Question 3

During the year ended December 21, 2013, Smith Company completedthe following transactions:

  1. 04/15 Declared a semiannual dividend of $0.80 per share onpreferred stock and $0.05 per share on common stock to shareholdersof record on 05/05, payable on 05/10. Currently, 4,000shares of $100 par preferred stock and 50,000 shares of $1 parcommon stock are outstanding.

  2. 05/05 Record date of record entry.

  3. 05/10 Paid cash dividends.

  4. 10/15 Declared semiannual dividend of $0.80 per share onpreferred stock and $0.50 per share on common stock to shareholdersof record on November 5, payable on November 20.

  5. 11/5 Record date of record entry.

  6. 11/20 Paid cash dividends

  7. 11/22 Declared a 10% stock dividend to shareholders of record onDecember 8, distributable on December 16. Market valueof the common stock was estimated to be $8.

  8. 12/08 Record date of record entry.

  9. 12/16 issued certificated for common stock dividend.

  10. 12/20 Board of directors declared a two for one common stocksplit.





Jude Corporation has been authorized to issue 20,000 shares of$100 par value, 10%, noncumulative preferred stock and 1,000,000shares of no-par common stock. The corporation assigned a $2.50stated value to the common stock. At December 31, 2014, the ledgercontained the following balances pertaining to stockholder'sequity.


Perferred Stock $120,000

Pain-in Capital in Excess of Par- Preferred Stock 12,000

Common Stock 1,000,000

Paid-in Capital in Excess of Stated Value- Common Stock1,600,000

Treasury Stock (1,000 common shares) 9,000

Paid-in Capital from Treasury Stock 1,000

Retained Earnings 82,000


The preferred stock was issued for land having a fair value of$132,000. All common stock issued was for cash. In November, 1,500shares of common stock were purchased for the treasury at a pershare of $9. In December, 500 shares of treasury stock were soldfor $11 per share. No dividends were declared in 2014.


Prepare the stockholder's equity section at December 31,2014

The stockholders' equity section of Gupta Company at December 31, 2013 follows:

8% preferred stock, $25 par value, 50,000 shares authorized; 7,200 shares issued and outstanding....... $180,000

Common Stock, $10 par value, 200,000 shares authorized; 40,000 shares issued and outstanding..... $400,000

Paid-In capital excess of par value (preferred)......... $68,000

Pain-IN capital in excess par value (common).... $200,000

Retained Earnings... $280,000

During 2014, the following transactions ocurred:

Jan 10 Issued 28,000 shares of common stock for $16 per share

Jan 23 Repurchased 8,000 shares of common stock at $18 per share

Mar 14 Sold half of the treasury shares acquired Jan 23 for $20 per share

July 15 Issued 2,800 shares of preferred stock for $128,000 cash

Nov 15 Sold 1,000 of the treasury shares acquired Jan 23 for $24 per share

Questions:

a0 Use the financial statement effects template to indicate the effects from cash of these transactions.

b) Prepare the December 31, 2014, stockholders' equity section of the balance sheet assuming the company reports 2014 net income of $62,000.

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