Frenchroast Company earned net income of $95,000 during the year ended December 31, 2016. On December...

  

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Frenchroast Company earned net income of $95,000 during the year ended December 31, 2016. On December 15, Frenchroast declared the annual cash dividend on its 2% preferred stock (par value, $128,000) and a S0.75 per share cash dividend on its common stock (65,000 shares). Frenchroast then paid the dividends on January 4, 2017. Requirements 1. Journalize for Frenchroast the entry declaring the cash dividends on December 15, 2016. 2. Journalize for Frenchroast the entry paying the cash dividends on January 4, 2017. S13-8 Dividing cash dividends between preferred and common stock Learning Objective 4 Platinum Trust has the following classes of stock: Preferred Stock-3%, 514 Par Value, 7,000 shares authorized, 5.500 shares issued and outstanding Common Stock-S0.20 Par Value, 2,750,000 shares authorized, 1,650,000 shares ssed and outstarding Copyngtu e20in Peam tiducaten. Inc Requirements 1. Platinum declares cash dividends of $20,000 for 2016. How much of the dividends goes to preferred stockholders? How much goes to common stockholders? 2. Assume the preferred stock is cumulative and Platinum passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of S50,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders? 3. Assume the preferred stock is noncumulative and Platinum passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of S50,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders? Frenchroast Company earned net income of $95,000 during the year ended December 31, 2016. On December 15, Frenchroast declared the annual cash dividend on its 2% preferred stock (par value, $128,000) and a S0.75 per share cash dividend on its common stock (65,000 shares). Frenchroast then paid the dividends on January 4, 2017. Requirements 1. Journalize for Frenchroast the entry declaring the cash dividends on December 15, 2016. 2. Journalize for Frenchroast the entry paying the cash dividends on January 4, 2017. S13-8 Dividing cash dividends between preferred and common stock Learning Objective 4 Platinum Trust has the following classes of stock: Preferred Stock-3%, 514 Par Value, 7,000 shares authorized, 5.500 shares issued and outstanding Common Stock-S0.20 Par Value, 2,750,000 shares authorized, 1,650,000 shares ssed and outstarding Copyngtu e20in Peam tiducaten. Inc Requirements 1. Platinum declares cash dividends of $20,000 for 2016. How much of the dividends goes to preferred stockholders? How much goes to common stockholders? 2. Assume the preferred stock is cumulative and Platinum passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of S50,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders? 3. Assume the preferred stock is noncumulative and Platinum passed the preferred dividend in 2014 and 2015. In 2016, the company declares cash dividends of S50,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

Answer rating: 100% (QA)

S137 Requirement 1 Date Account title and explanation Debit Credit 12152016 Cash dividends 51310 Div... View the full answer