Question
smith corporation had the following accounts at January 1,2021: Common shares, unlimited number of shares authorized,...
smith corporation had the following accounts at January 1,2021:
Common shares, unlimited number of shares authorized, 7,000 shares were issued $197,000
Preferred shares $9.50 cumulative, unlimited number of shares authorized; 2000 shares issued $63,500
Retained earnings $263,000
During the year, the company paid the preferred dividend and paid a $1.50 dividend to the common shareholders. The company had a profit of $333,000
Instructions:
Prepare the shareholders equity section of the balance sheet at December 31,2021.
Homework Answers
Answer #1
Workings:
1. Preferred Stock Dividend = Preferred Stock Dividend per share
* Number of Preferred Stock Outstanding
Preferred Stock Dividend = $9.50 * 2,000
Preferred Stock Dividend = $19,000
2. Common Stock Dividend = Common Stock Dividend per share *
Number of Common Stock Outstanding
Common Stock Dividend = $1.50 * 7,000
Common Stock Dividend = $10,500
3.
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