Dempsey Corporation first issued stock on 1st January 2019. Dempsey has the following stock outstanding on...

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Dempsey Corporation first issued stock on 1st January 2019. Dempsey has the following stock outstanding on 31st December 2019: Preferred Stock (5% cumulative, $45 par, 10,000 shares authorized, 6,000 shares issued and outstanding) Common Stock ($5 par, 100,000 shares authorized, 75,000 shares issued and outstanding) 2019 2020 2021 2022 For the fiscal years 2019-2022, Dempsey Corporation had the following equity transactions during the year and also paid the following cash dividends at the end of the year: Equity Transactions during the period: (a) Repurchased 1,000 shares of its own common stock at $7 per share, to be held in treasury. $270,000 (b) Reissued 200 shares of treasury stock at $10 per share. (c) Reissued 500 shares of treasury stock at $4 per share $375,000 Cash Dividends: $10,000 $0 $43,500 $30,000 REQUIRED (Total 12 marks): 1. Prepare the necessary journal entries to record each of the equity transactions (a) to (c) stated above. Date and explanations for journal entries are not required. (6 marks) 2. Calculate the total cash dividends received by Dempsey's preferred stockholders during each of the years from 2019 to 2022. Show your workings and round your answers to 2 decimal places. (3 marks) 3. Calculate the cash dividend per share received by Dempsey's common stockholders during each of the years from 2019 to 2022. Show your workings and round your answers to 2 decimal places. (3 marks) Dempsey Corporation first issued stock on 1st January 2019. Dempsey has the following stock outstanding on 31st December 2019: Preferred Stock (5% cumulative, $45 par, 10,000 shares authorized, 6,000 shares issued and outstanding) Common Stock ($5 par, 100,000 shares authorized, 75,000 shares issued and outstanding) 2019 2020 2021 2022 For the fiscal years 2019-2022, Dempsey Corporation had the following equity transactions during the year and also paid the following cash dividends at the end of the year: Equity Transactions during the period: (a) Repurchased 1,000 shares of its own common stock at $7 per share, to be held in treasury. $270,000 (b) Reissued 200 shares of treasury stock at $10 per share. (c) Reissued 500 shares of treasury stock at $4 per share $375,000 Cash Dividends: $10,000 $0 $43,500 $30,000 REQUIRED (Total 12 marks): 1. Prepare the necessary journal entries to record each of the equity transactions (a) to (c) stated above. Date and explanations for journal entries are not required. (6 marks) 2. Calculate the total cash dividends received by Dempsey's preferred stockholders during each of the years from 2019 to 2022. Show your workings and round your answers to 2 decimal places. (3 marks) 3. Calculate the cash dividend per share received by Dempsey's common stockholders during each of the years from 2019 to 2022. Show your workings and round your answers to 2 decimal places. (3 marks)

Answer rating: 100% (QA)

To address the tasks mentioned in the document lets go step by step 1 Journal Entries 6 marks 2020 a The repurchase of common stock treasury stock doe... View the full answer