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Determine the total and per share dividends for each class of stock for each year by completing the schedule.




A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of $10, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per share dividends for each class of stock for each year by completing the schedule.;Preferred;Common;Year;Dividends;Total;Per Share;Total;Per Share;1;$10,000;2;25,000;3;60,000;2. Selected transactions completed by Breezeway Construction during the current fiscal year are as follows;February 3;Split the common stock 2 for 1 and reduced the par from $40 to $20 per share. After the split there were 250,000 common shares outstanding.;April 10;Declared semiannual dividends of $1.50 on 18,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 10, payable on June 9.;June 9;Paid the cash dividends.;October 10;Declared semiannual dividends of $1.50 on the preferred stock and $0.04 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.;December 9;Paid the cash dividends and issued the certificates for the common stock dividend.;Required: Journalize the transactions.;3. Sorenson Co., is considering the following alternative plans for financing their company;Plan I;Plan II;Issue 10% Bonds (at face);-;$3,000,000;Issue $10 par Common Stock;$4,000,000;$1,000,000;Income tax is estimated at 40% of income.;Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000.;4. Journalize the entries to record the following selected bond investment transactions for Southwest Bank;(1);Purchased $400,000 of Daytona Beach 5% bonds at 100 plus accrued interest of $4,500.;(2);Received the first semiannual interest.;(3);Sold $250,000 of the bonds at 97, plus accrued interest of $1,800.;5. During 2012, its first year of operations, Makala Company purchased two available-for-sale investments as follows;Security;Shares Purchased;Cost;Oceanna Company;700;$29,000;Rockledge, Inc.;1,900;41,000;Assume that as of December 31, 2012, the Oceanna Company stock had a market value of $49 per share and Rockledge, Inc. stock had a market value of $20 per share.;Makala had 10,000 shares of no par stock outstanding that was issued for $150,000. For the year ending December 31, 2012, Makala had a net income of $105,000. No dividends were paid.;Required;(1);Prepare the Current Assets section of the balance sheet presentation for the available-for sale securities as of December 31, 2012.;(2);Prepare the Stockholders? Equity section of the balance sheet as of December 31, 2012.;6. Durrand Corporation?s accumulated depreciation increased by $12,000, while patents decreased by $2,200 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,300 from sale of land. Reconcile a net income of $65,000 to net cash flow from operating activities.;7. Dorman Company reported the following data;Net income;$225,000;Depreciation expense;25,000;Gain on disposal of equipment;20,500;Decrease in accounts receivable;14,000;Decrease in account payable;3,600;Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method.;8. A company reports the following;Net income;$350,000;Preferred dividends;$50,000;Average stockholders? equity;$1,000,000;Average common stockholders? equity;$800,000;Determine the (a) rate earned on stockholders? equity, and (b) rate earned on common stockholders? equity. Round your answer to one decimal place.;9. On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year;(a);Issuance of the bonds.;(b);First annual interest payment.;(c);Amortization of bond premium for the year, using the straight-line method of amortization.;10. Revenue and expense data for Martinez Company are as follows;2012;2011;Administrative expenses;$37,000;$20,000;Cost of goods sold;350,000;320,000;Income tax;40,000;32,000;Net sales;800,000;700,000;Selling expenses;150,000;110,000;(a);Prepare a comparative income statement, with vertical analysis, stating each item for both 2012 and 2011 as a percent of sales.;(b);Comment upon significant changes disclosed by the comparative income statement.;Round percentage to one decimal place.


Paper#25198 | Written in 18-Jul-2015

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