Question
Aquamanu Developments is authorized to issue 500,000 shares. To date, the company has 191,500 shares issued...
Aquamanu Developments is authorized to issue 500,000 shares. To date, the company has 191,500 shares issued and 154,400 outstanding. Aquamanu is considering declaring a dividend to its common shareholders. Management is recommending the board of directors to consider the following options at the next meeting scheduled for March 1:
|
1. |
The boards of directors should approve a motion directing the company to pay a dividend of $0.30 per share on May 1 to shareholders of record on April 15 or | |
|
2. |
The board should approve a motion directing the company to declare a 10% stock dividend. Aquamanu would distribute one common share for every 10 common shares currently held. The company’s common shares are currently selling for $51 per share. |
A) Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1
B)Prepare the entry to record the stock dividend, assuming that the dividend is declared on March 1 and is distributed on May 1.
Homework Answers
Answer #1
If you have any doubts please comment on the answer.
Not the answer you're looking for?
Similar Questions
National Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A...
National Chocolate Corp. produces chocolate bars and snacks
under the brand names Blast and Soothe. A press release contained
the following information:
March 5—National Chocolate Corp. today announced that its Board
of Directors has declared a special “one-time” cash dividend of
$0.80 per share on its 104,000 outstanding common shares. The
dividend will be paid on April 29 to shareholders of record at the
close of business on March 26. The Company's fiscal year will end
April 30.
Required:
1....
Prince Observation incorporated on May 1st, 2020 and was authorized to issue 500,000 common shares and...
Prince Observation incorporated on May 1st,
2020 and was authorized to issue 500,000 common shares and 100,000,
5% non-participating, convertible preferred shares. During the
remainder of 2020, the company entered into the following
transactions:
1.Issued 30,000 common shares in exchanged for
$600,000.
2.Issued 5,000 preferred shares in exchange
for $75,000.
3.Repurchased 3,000 common shares for $24.00
per share in the open market.
The company entered into no other transactions that affected
shareholders' equity during 2020.
Provide the journal entries for...
Delta Motors Corporation has 100,000,000 authorized shares of $1 par value common stock. As of June...
Delta Motors Corporation has 100,000,000 authorized shares of $1
par value common stock. As of June 30, 20x8, there were 1,000,000
shares issued and outstanding. On June 30, 20x8, the board of
directors declared a $.20 per share cash dividend to be paid on
August 1, 20x8, to shareholders of record on July 15, 20x8. Prepare
entries in journal form to be recorded on (a) the date of
declaration, (b) the date of record, and (c) the date of
payment.
Slaneders & Sons Company has 1,000,000 authorized shares of $20 par value common stock. As of...
Slaneders & Sons Company has 1,000,000 authorized shares of
$20 par value common stock. As of June 30, 2012, there were 500,000
shares issued and outstanding. On June 30, 2012, the board of
directors declared a $0.30 per share cash dividend to be paid on
August 1, 2012.
Instructions
Prepare the necessary journal entries
to be recorded on (a) the date of declaration, (b) the date of
record and (c) payment date.
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock...
Common and Preferred Cash Dividends
Wang Company currently has 200,000 shares of $1 par common stock
outstanding and 2,900 shares of $50 par preferred stock
outstanding. On July 10, the board of directors declared a
semiannual dividend of $0.33 per share on common stock to
shareholders of record on August 1, payable on August 5.
On July 15, the board of directors declared a semiannual
dividend of $4 per share on preferred stock to shareholders of
record on August 5,...
please show all steps AAA Company has the following shares issued and outstanding: 2000 Preferred shares,...
please show all steps
AAA Company has the following shares issued and outstanding:
2000 Preferred shares, $10, cumulative 40000 Common shares
Dividends were not paid to the preferred shareholders in the
previous three years. In the current year, the Board of Directors
declared a $92,000 cash dividend.
REQUIRED: Determine the total dividends paid to each class of
shares
REQUIRED: Determine the total dividends paid to each class and
the dividend per share to both common and preferred
shareholders.
10- ZIP Company owns 37,000 shares of the common stock of PIK Company. ZIP decided to...
10- ZIP Company owns 37,000 shares of the common stock of PIK
Company. ZIP decided to divest itself of this investment by
distributing the PIK shares in the form of a property dividend. The
dividend ratio is one share of PIK for every four shares of ZIP
common held by shareholders. ZIP has 148,000 common shares
outstanding. On April 15, 2018, the date of declaration, PIK stock
had a par of $5 per share, a book value of $11.7 per...
ABC Company was formed on 7/1/2015. It was authorized to issue 500,000 shares of $10 per...
ABC Company was formed on 7/1/2015. It was authorized to issue
500,000 shares of $10 per value common stock and 100,000 shares of
8%, 25 par value cummulative non participating preffered stock. ABC
has June 30th fiscal year.
At IPO 95,000 shares were issued for 31/share (cash). On July
24, 2015-5000 shares were exchanged for a plot of land which had a
FVM of $220,000 at the date of the exchange. On March 1, 2017
10,000 shares were issued for...
Riverbed Company was formed on July 1, 2015. It was authorized to issue 314,700 shares of...
Riverbed Company was formed on July 1, 2015. It was authorized
to issue 314,700 shares of $10 par value common stock and 100,600
shares of 8% $25 par value, cumulative and nonparticipating
preferred stock. Riverbed Company has a July 1–June 30 fiscal
year.
The following information relates to the stockholders’ equity
accounts of Riverbed Company.
Common Stock
Prior to the 2017–2018 fiscal year, Riverbed Company had 110,800
shares of outstanding common stock issued as follows.
1.
84,500 shares were issued...
1. The company is authorized to issue 7,920,000 shares of $10 par value common stock. As...
1. The company is authorized to issue 7,920,000 shares of $10
par value common stock. As of December 31, 2017, 1,980,000 shares
had been issued and were outstanding. 2. The per share market
prices of the common stock on selected dates were as follows. Price
per Share July 1, 2017 $20.00 January 1, 2018 21.00 April 1, 2018
25.00 July 1, 2018 11.00 August 1, 2018 10.50 November 1, 2018 9.00
December 31, 2018 10.00 3. A total of 720,000...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 13 minutes ago
asked 22 minutes ago
asked 28 minutes ago
asked 41 minutes ago
asked 42 minutes ago
asked 44 minutes ago
asked 56 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago