10-2B Equity section analysis The December 31, 2024 shareholders' equity section of Hart Inc.'s balance sheet...

 

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10-2B Equity section analysis The December 31, 2024 shareholders' equity section of Hart Inc.'s balance sheet is shown below: Preferred shares, $2 cumulative, 2,500 issued Common shares, 10,000,000 authorized, 10,000 issued Retained earnings Total shareholders' equity $250,000 500,000 300,000 $1,050,000 Required: a.) How much were the preferred shares issued for? b.) How much were the common shares issued for? c.) What does authorized mean as it relates to common shares? d.) What does the term "cumulative" mean in relation to preferred shares? e.) What amount must the preferred shareholders receive before common shareholders can be paid a dividend? f.) Assume the company has not paid any dividends in 2023 or 2024. On January 15, 2025 the company wishes to pay common shareholders a dividend of $1 per share. How much must they pay preferred shareholders at that time? Record the journal entry for both the preferred and common dividends. 10-2B Equity section analysis The December 31, 2024 shareholders' equity section of Hart Inc.'s balance sheet is shown below: Preferred shares, $2 cumulative, 2,500 issued Common shares, 10,000,000 authorized, 10,000 issued Retained earnings Total shareholders' equity $250,000 500,000 300,000 $1,050,000 Required: a.) How much were the preferred shares issued for? b.) How much were the common shares issued for? c.) What does authorized mean as it relates to common shares? d.) What does the term "cumulative" mean in relation to preferred shares? e.) What amount must the preferred shareholders receive before common shareholders can be paid a dividend? f.) Assume the company has not paid any dividends in 2023 or 2024. On January 15, 2025 the company wishes to pay common shareholders a dividend of $1 per share. How much must they pay preferred shareholders at that time? Record the journal entry for both the preferred and common dividends.

Answer rating: 100% (QA)

a Preferred share issue for 100 b Common share issued for 50 c Authorized share are ... View the full answer