Question: Please Solve as many as Chegg allows. Really need help EQUITY PROBLEM [30 Points] Bruins Inc. has the following items in their current balance sheet:

 Please Solve as many as Chegg allows. Really need help EQUITY

Please Solve as many as Chegg allows. Really need help

EQUITY PROBLEM [30 Points] Bruins Inc. has the following items in their current balance sheet: Common Stock 10,000,000 shares authorized, $1,000,000 issued Capital Surplus Treasury Stock on Common 100,000 shares Cumulative Preferred Stock 500,000 authorized S3,000,000 $9,000,000 $6,000,000 12%| S100 par $8,000,000 S6,000,000 60,000,000 Treasury Stock on Preferred Stock 10000 shares Retained Earnings I. Bruins Inc. wishes to announce a total cash dividend of s40,000,000. How is this dividend to be split between the common and preferred stockholders? 2. What is the dividend per share for common and preferred after the dividend distribution from question 1 above? Suppose Bruins Inc. was two years in the arrears in paying dividends to the preferred stockholders, then what is the dollar amount of the preferred and common shareholder dividend? 3. How many Bruins common stock shares are outstanding? 4. 5. If Bruins Inc. announces a 4 for 1 stock split of the cumulative preferred then what is the new total amount of the preferred stock? If Bruins Inc. were to provide for a 10% common stock dividend, then how many new shares are to be mailed to existing shareholders? 6. Assume in question [6] the market price of the common stock was $15 at the time of the stock dividend announcement. What is the journal entry to record the stock dividend? 7. Using the equity portion of the Bruins Inc. balance sheet above, determine the amount of the total equity in Bruins Inc. Assume this question ignores the results of questions 11-7] above. 8. 9. hat is the impact of the common and preferred cash dividend [$5,000,000 as per question 1 above] on the current balance sheet of Bruins Inc.? 10, what is the impact of the 20% common stock dividend on the balance sheet? Assume this question ignores questions [1-9] above

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!