Lab 9 (Question 5) ~ Lyryx Learning Inc 12/2/2013, 3:18 AM
SPREADSHEET PRINT HELP
Lab 9 (Question 5)
Name: kun li
Date: 2013-12-02 3:17
Question 5 [10 points]
The question was:
The December 31, 2013, shareholders' equity section of the statement of financial position of Velor Inc.
December 31, 2013
Preferred shares, $2.00 cumulative,
27,000 shares authorized and issued 108,000
Preferred shares, $8.00 non-cumulative,
26,000 shares authorized and issued 442,000
375,000 common shares authorized and issued 3,750,000
Total contributed capital 4,300,000
Retained earnings 1,289,000
Total shareholders' equity 5,589,000
All the shares were issued on January 1, 2011 (when the corporation began operations). No dividends had
been declared during the first two years of operations (2011 and 2012). During 2013, the cash dividends
declared and paid totalled $516,000.
(A) Calculate the amount of cash dividends paid during 2013 to each of the three classes of shares.
Cumulative preferred shares 12
Non-cumulative preferred shares 1
Common shares 1
The dividends paid to cumulative preferred shareholders should be $162,000, but you have not entered
this. This will cost you 1 mark.
http://lafa1.lyryx.com/student-servlets/LabServlet?ccid=6253&lab=9&singleQuestion=4&course=6253&ident=966Page 1 of 3=answer Lab 9 (Question 5) ~ Lyryx Learning Inc 12/2/2013, 3:18 AM
The dividends paid to non-cumulative preferred shareholders should be $208,000, but you have not