Sunland Inc. (SI) is a widely held, publicly traded company that designs equipment for tuning musical...
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Sunland Inc. (SI) is a widely held, publicly traded company that designs equipment for tuning musical instruments. Information about its shareholders' equity is as follows. SUNLAND INC. Shareholders' Equity December 31, 2022 Share capital Preferred shares, no par value, $8, cumulative, and participating (20,000 authorized; 1,000 issued and outstanding) $100,000 Common shares, unlimited number authorized, 35,000 issued and outstanding 472,500 Contributed capital, preferred share retirement 19,500 592,000 Retained earnings Shareholders' equity 283,570 $875,570 The preferred share dividend was not paid in 2022. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2023, and are summarized in chronological order as follows: The preferred share dividend was not paid in 2022. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2023, and are summarized in chronological order as follows: 1. Exchanged 8,750 common shares for prototype piano tuning equipment. The equipment was valued at $87,500 by an independent appraiser. On the transaction date, SI's shares were actively trading at $10 per share. 2. Purchased and retired 8,750 common shares at $13.50 per share. 3. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend. SI's net income for 2023 was $64,000. No. Account Titles and Explanation 1. Equipment Common Shares 2. Common Shares Retained Earnings Cash 3. Cash Dividends-Preferred Cash (To record payment of dividend to preferred shareholders) Debit 87,500 118,125 4,375 8,000 Common Shares Dividends Distributable 70,000 Cash (To record payment of dividend to common shareholders) Credit 87,500 122,500 8,000 70,000 Calculate the company's payout ratio for 2023. (Round answer to O decimal places, e.g. 52%.) Payout Ratio % Calculate the company's payout ratio for 2023, if the preferred share dividend was paid in 2022. (Round answer to O decimal places, e.g. 52%.) Payout ratio % Sunland Inc. (SI) is a widely held, publicly traded company that designs equipment for tuning musical instruments. Information about its shareholders' equity is as follows. SUNLAND INC. Shareholders' Equity December 31, 2022 Share capital Preferred shares, no par value, $8, cumulative, and participating (20,000 authorized; 1,000 issued and outstanding) $100,000 Common shares, unlimited number authorized, 35,000 issued and outstanding 472,500 Contributed capital, preferred share retirement 19,500 592,000 Retained earnings Shareholders' equity 283,570 $875,570 The preferred share dividend was not paid in 2022. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2023, and are summarized in chronological order as follows: The preferred share dividend was not paid in 2022. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2023, and are summarized in chronological order as follows: 1. Exchanged 8,750 common shares for prototype piano tuning equipment. The equipment was valued at $87,500 by an independent appraiser. On the transaction date, SI's shares were actively trading at $10 per share. 2. Purchased and retired 8,750 common shares at $13.50 per share. 3. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend. SI's net income for 2023 was $64,000. No. Account Titles and Explanation 1. Equipment Common Shares 2. Common Shares Retained Earnings Cash 3. Cash Dividends-Preferred Cash (To record payment of dividend to preferred shareholders) Debit 87,500 118,125 4,375 8,000 Common Shares Dividends Distributable 70,000 Cash (To record payment of dividend to common shareholders) Credit 87,500 122,500 8,000 70,000 Calculate the company's payout ratio for 2023. (Round answer to O decimal places, e.g. 52%.) Payout Ratio % Calculate the company's payout ratio for 2023, if the preferred share dividend was paid in 2022. (Round answer to O decimal places, e.g. 52%.) Payout ratio %
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Related Book For
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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