Question

The following information pertains to Carson Corp. as of December 31, year 8: Dividends in arrears...

The following information pertains to Carson Corp. as of December 31, year 8:

Dividends in arrears on cumulative preferred stock: $15,000

year 8 dividends on preferred stock, will be declared in January year 9: $20,000

year 8 dividends on common stock, will be declared in January year 9: $40,000

CEO bonus for year 8, will be paid in February year 9: $30,000

What amount should Carson report as current liabilities on its balance sheet at December 31, year 8?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Amount should be reported as current liabilities on Carson balance sheet at December 31 year 8 will be $30000.

Explanation:

CEO bonus has been ascertain and not paid till December 31 , so only CEO bonus will be reported as current liabilities amouunted to $30000.

Dividend has not been declared in year 8 , so no any event occurred related to Dividend Arrear and Dividend payable in year 8.

When Dividend will be declare in year 9 then in that particular year it will be shown under liabilities side of balance sheet.

Conclusion: Therefore only CEO bonus will be shown under current liabilities of Carson balance sheet in year 8.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At the start of its first year, a corporation issued 5,000 shares of 8%, $50 par...
At the start of its first year, a corporation issued 5,000 shares of 8%, $50 par value, non-cumulative preferred stock and 100,000 shares of $1 par value common stock. The corporation declared and paid dividends of $15,000 in the first year. In its second year, the corporation declared and paid dividends of $60,000. What are the dividends received by the common stockholders in the second year? $25,000 $40,000 $30,000 $20,000 $35,000
Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends...
Mustang Company has the following shares of stock outstanding: Preferred, 8%, $100 par, 10,000 shares (Dividends totaling $15,000 are in arrears.) Common, $1 par, 100,000 shares On October 22, the board of directors declared cash dividends totaling $100,000, payable on December 24 to shareholders of record as of November 24. The preferred stock is NONCUMULATIVE. Which of the following will be included in the journal entry to record the declaration of the dividends? Question 1 options: Debit Paid-in capital –...
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2016, and issued the following stock for cash: 700,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2016, at $18.00 per share. 250,000 shares of $110 par value, 8.00% cumulative, preferred stock were authorized, and 71,000 shares were issued on January 1, 2016, at $140 per share. Net income for the years ended December 31, 2016 and 2017, was $1,450,000 and $2,490,000, respectively. No dividends were...
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000...
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt...
Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common Stock...
Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common Stock (par $1; outstanding, 400,000 shares) $ 400,000 Preferred Stock, 9% (par $10; outstanding, 18,100 shares) 181,000 Retained Earnings 957,000 On December 31, 2015, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2013 or 2014. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount...
For the year ended December 31, 2018, Transformers Inc. reported the following: Net income   $180,000 Preferred...
For the year ended December 31, 2018, Transformers Inc. reported the following: Net income   $180,000 Preferred dividends declared 30,000 Common dividend declared 6,000 Unrealized holding gain on available-for-sale securities, net of tax 3,000 Retained earnings, beginning balance 240,000 Common stock     120,000 Accumulated Other Comprehensive Income, Beginning Balance 15,000 The balance of Accumulated Other Comprehensive Income that is reported on the balance sheet on December 31, 2018: Select one: a. $192,000 b. $18,000 c. None of the available choices d. $12,000
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000...
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt...
Makoto Corporation has 9,500 shares of $100 par value, 8%, preferred stock and 45,600 shares of...
Makoto Corporation has 9,500 shares of $100 par value, 8%, preferred stock and 45,600 shares of $10 par value common stock outstanding at December 31, 2020. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2017, what are the dividends in arrears on December 31, 2020, balance sheet? The amount of dividends in arrears on the December 31, 2020 $...
Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000...
Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:                         2017                            $ 6,000                         2018                            $30,000                         2019                            $60,000 Instructions (a)   Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative. (b)   Show the allocation of dividends...
Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock...
Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock (par $1; outstanding, 570,000 shares) $ 570,000 Preferred stock, 9% (par $10; outstanding, 21,700 shares) 217,000 Retained earnings 907,000 On December 31, 2015, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2013 or 2014. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT