Find total paid-in capital after the stock dividend and total retained earnings after the stock dividend: Year
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Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Cash Dividends 40,000 72,000 122,000 150,000 168,000 240,000 Preferred Dividends Total 40,000 72,000 68,000 60,000 60,000 60,000 Per Share 0.20 0.36 0.34 0.3 0.3 0.3 Common Dividends How many shares of preferred stock are outstanding? 200,000 Total 0 0 54,000 90,000 108,000 180,000 Per Share 0.00 0.00 0.09 0.15 0.18 0.3 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc. s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you ve collected regarding its outstanding stock. Fill in the following answers. How many shares of common stock are outstanding? 600,000 Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $32 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All before ite before the stock dividend was declared. All after items are after the stock dividend was declared and closing entries were recorde the end of the year. Total paid-in capital before the stock dividend Total retained earnings before the stock dividend Total stockholders equity before the stock dividend Total paid-in capital after the stock dividend Total retained earnings after the stock dividend 25,000,000 33,500,000 $ 58,500,000 $ $ xx X X Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized Number of common shares issued Par value of common shares Par value of cumulative preferred shares Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Total retained earnings before the stock dividend is declared No treasury share have been reissued. Year Year 1 Total Cash Dividends 40,000 Preferred Dividends Total 40,000 Per Share 0.20 Total 800,000 650,000 0 Common Dividends $7,000,000 $20 $30 $33,500,000 Per Share 0.00 $0 Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Cash Dividends 40,000 72,000 122,000 150,000 168,000 240,000 Preferred Dividends Total 40,000 72,000 68,000 60,000 60,000 60,000 Per Share 0.20 0.36 0.34 0.3 0.3 0.3 Common Dividends How many shares of preferred stock are outstanding? 200,000 Total 0 0 54,000 90,000 108,000 180,000 Per Share 0.00 0.00 0.09 0.15 0.18 0.3 Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc. s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you ve collected regarding its outstanding stock. Fill in the following answers. How many shares of common stock are outstanding? 600,000 Stock Dividend The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $32 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All before ite before the stock dividend was declared. All after items are after the stock dividend was declared and closing entries were recorde the end of the year. Total paid-in capital before the stock dividend Total retained earnings before the stock dividend Total stockholders equity before the stock dividend Total paid-in capital after the stock dividend Total retained earnings after the stock dividend 25,000,000 33,500,000 $ 58,500,000 $ $ xx X X Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized Number of common shares issued Par value of common shares Par value of cumulative preferred shares Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Total retained earnings before the stock dividend is declared No treasury share have been reissued. Year Year 1 Total Cash Dividends 40,000 Preferred Dividends Total 40,000 Per Share 0.20 Total 800,000 650,000 0 Common Dividends $7,000,000 $20 $30 $33,500,000 Per Share 0.00 $0
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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