The shareholders equity of Deer Ltd. at the end of 2024 and 2023 appeared as follows: During
Question:
The shareholders’ equity of Deer Ltd. at the end of 2024 and 2023 appeared as follows:During 2024, Deer paid a total of $125,000 in cash dividends.
Required
a. Assume the preferred shares were not in arrears at December 31, 2023. How was the $125,000 in cash dividends distributed between the two types of shares in 2024?
b. Assume the preferred share dividends were in arrears for one year; that is, the dividends were not paid in 2023. How was the $125,000 in cash dividends distributed between the two classes of shares?
c. Both common shares and retained earnings changed during the year. Provide journal entries that would account for the changes.
Share capital, preferred shares, $2 cumulative, 2,000,000 shares authorized, 25,000 shares issued Share capital, 5,000,000 common shares authorized, 1,200,000 common shares issued (2023-1,000,000 shares) Retained earnings Total shareholders' equity 2024 $ 200,000 5,000,000 3,920,000 $9,120,000 2023 $ 200,000 4,000,000 3,160,000 $7,360,000
Step by Step Answer:
a b c 2023 arrears ...View the full answer
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
The shareholders equity of Deer Ltd. at the end of 2016 and 2015 appeared as follows: During 2016, Deer paid a total of $125,000 in cash dividends. Required: a. Assume the preferred shares were not...
-
The shareholders equity of Deer Ltd. at the end of 2020 and 2019 appeared as follows: During 2020, Deer paid a total of $125,000 in cash dividends. Required a. Assume the preferred shares were not in...
-
The shareholders equity of Deer Ltd. at the end of 2020 and 2019 appeared as follows: 2020 2019 Share capital, preferred shares, $2 cumulative, 2,000,000 shares authorized, 22,500 shares issued...
-
A set of 2M biorthogonal signals is obtained from a set of M orthogonal signals by augmenting it with the negative of each signal in the set. (a) The extension of orthogonal to biorthogonal signals...
-
Two inventive entrepreneurs have interested a group of venture capitalists in backing a new business project. The proposed plan would consist of a series of international retail outlets to distribute...
-
Oil at 50F is heated in a horizontal 2-in. Schedule 40 steel pipe 60 ft long having a surface temperature of 120F. The oil flow rate is 150 gal/h at inlet temperature. What will be the oil...
-
Could an include use case have a secondary actor? Explain.
-
Many companies post their financial statements and auditors report on their home pages, generally under a heading labeled investor relations. Use one of the Internet search engines to do the...
-
PROBLEM A-SALES BUDGET Sales volume for the year 2017 has been estimated for Queennie Apparels as follows: Quarters Products Dresses Shirts Pants First 18,000 32,000 46,000 Second 21,000 35,000...
-
LEGO is one of the worlds most recognizable toys. The small, colorful building blocks have spawned countless sets, figurines, video games, and even movies and theme parks. LEGO is built on a very...
-
Flatfish Limited reported the following items in shareholders equity on December 31, 2024: Required a. No dividends were declared in 2022 or 2023; however, in 2024, cash dividends of $5 million were...
-
The shareholders equity of Henry Byce Ltd. at the end of 2024 and 2023 appeared as follows: Byce began operations in 2022. The 50,000 preferred shares issued have been outstanding since 2022. During...
-
First Simple Bank pays 7.5 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to...
-
Which chart is commonly used to present financial data and outcomes? Line chart Pie chart Bar chart
-
What is NOT true about cash? Question 6 options: Cash flows are a better indicator of a company's financial health than profits. A longer cash-to-cash cycle is normally preferred because it means the...
-
on december 5, minnie corp was notified that daisy ltd filed for bankruptcy and therefore decided to write off 7,000 owed by daisy. on december 20, daisy informed minnie that 3,500 of the amount...
-
Which of the fThe body that has the ultimate power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the a. APB b. SEC c. FASB d....
-
Self-Service Checkout Sales Day Self-Service Checkout Sales 1.000 Shop Lifting Loss 0.062 Average Customer Satisfction Score -0.060 Customers Requiring Staff Assistance 0.038 Employee Operated...
-
In 2008, Sharon purchased her principal residence for $500,000. In 2013, she converts the property to rental use because she has been unable to sell it due to the depressed real estate market. The...
-
Ask students to outline the reasons why the various elements of culture (social structures and control systems, language and aesthetics, religion and other belief systems, educational systems, etc.)...
-
Excerpts from the 2013 financial statements of Gildan Activewear Inc. are in Exhibits11A to C. In the questions below, the year 2013 refers to Gildans fiscal year ended September 29, 2013, and the...
-
Enticing Fashions Ltd. designs and manufactures upscale womens clothing. The companys early customers were small boutiques in Toronto, Montreal, and Vancouver. Customers liked the colours and fabrics...
-
Explain the difference between a fundamental qualitative characteristic and an enhancing qualitative characteristic.
-
Businesses are required to record proof that workplace health and safety information was communicated clearly. What are some ways to achieve this?
-
The Diamond Jubilee is a floating riverboat casino that operates on the Mississippi River. Casinos attain a profit by collecting the bets/wagers placed by guests, but giving back on average a % of...
-
If we obtain a personal loan of $8,000 for 48 months, with an annual rate of 21% which we plan to amortize through unpaid balances, what is the first monthly payment that the bank will deduct from us...
Study smarter with the SolutionInn App