Question

Cash Dividends The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017,...

Cash Dividends

The Stockholders' Equity section of Jackson Company's balance sheet as of January 1, 2017, appeared as follows:

Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding $200,000
Common stock, $10 par, 5,000 shares issued and outstanding 50,000
Additional paid-in capital 300,000
Total contributed capital $550,000
Retained earnings 400,000
Total stockholders’ equity $950,000

The notes that accompany the financial statements indicate that Jackson has not paid dividends for the two years prior to 2017. On July 1, 2017, Jackson declares a dividend of $100,000 to be paid to preferred and common stockholders on August 1.

Required:

1. Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming that the preferred stock is noncumulative, nonparticipating stock.

Amount of Dividends
Preferred stock $
Common stock $

2. Identify and analyze the effect of the transactions on July 1 and August 1, 2017.

July 1:

Activity
Accounts
Statement(s)

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Balance Sheet Income Statement
Stockholders' Net
Assets = Liabilities + Equity Revenues – Expenses = Income

August 1:

Activity
Accounts
Statement(s)

How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Balance Sheet Income Statement
Stockholders' Net
Assets = Liabilities + Equity Revenues – Expenses = Income

3. Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming instead that the preferred stock is cumulative, nonparticipating stock.

Amount of Dividends
Preferred stock $
Common stock $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Dividends for Preferred and Common Stock The Stockholders' Equity category of Greenbaum Company's balance sheet as...
Dividends for Preferred and Common Stock The Stockholders' Equity category of Greenbaum Company's balance sheet as of December 31, 2017, appeared as follows: Preferred stock, $100 par, 9%    2,000 shares issued and outstanding $200,000 Common stock, $10 par   40,000 shares issued and outstanding 400,000 Additional paid-in capital 500,000 Total contributed capital $1,100,000 Retained earnings 900,000     Total stockholders' equity $2,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2015 or 2016. Greenbaum...
Cash Dividends The date of declaration, date of record, and date of payment in connection with...
Cash Dividends The date of declaration, date of record, and date of payment in connection with a cash dividend of $1,200,000 on a corporation’s common stock are June 1, July 15, and August 14, respectively. Illustrate the effects on the accounts and financial statements for June 1. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE CO. Balance Sheet (partial) Stockholders' equity   Paid-in capital     Preferred stock, cumulative, 11,000 shares authorized,       6,000 shares issued and outstanding $600,000     Common stock, no par, 750,000 shares authorized,       600,000 shares issued 6,000,000       Total paid-in capital 6,600,000   Retained earnings 1,450,000   Total paid-in capital and retained earnings 8,050,000   Less: Treasury stock (5,000 common shares) 41,000 Total stockholders' equity $8,009,000 From a review of the stockholders' equity section,...
A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as...
A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows. Stockholders' equity: Preferred stock, 9% cumulative, $50 par, 35,000 shares authorized, issued, and outstanding $ 1,750,000 Preferred stock, 12% noncumulative, $100 par, 5,300 shares authorized, issued, and outstanding 530,000 Common stock, $5 par, 460,000 shares authorized, issued, and outstanding 2,300,000 Total paid-in capital $ 4,580,000 Assume that all the stock was issued on January 1, Year 1 and that no dividends were paid...
The stockholders' equity section of the balance sheet of Crammond Corporation at December 31, appears as...
The stockholders' equity section of the balance sheet of Crammond Corporation at December 31, appears as follows: Stockholders' Equity $2 preferred stock, $100 par, 10,000 shares authorized $ 670,000 Common stock, $1 par, 100,000 shares authorized 72,000 Additional Paid-in Capital: From issuance of preferred stock 165,000 From issuance of common stock 710,000 Total paid-in capital 1,617,000 Retained earnings 835,000 Total Stockholders' equity $ 2,452,000 How many shares of common stock are outstanding? 110,000. 100,000. 72,000. 77,000.
Cash Dividends Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600...
Cash Dividends Kerry Company has 1,200 shares of $100 par value, 7% preferred stock and 11,600 shares of $10 par value common stock outstanding. The preferred stock is cumulative and nonparticipating. Dividends were paid in 2013. Since 2013, Kerry has declared and paid dividends as follows: 2014 $0 2015 9,200 2016 19,800 2017 24,800 1. Determine the amount of the dividends to be allocated to preferred and common stockholders for each year 2015 to 2017. If an amount is zero,...
Stockholders' Equity Section of Balance Sheet Premium Imports Inc. retails racing products for BMWs, Porsches, and...
Stockholders' Equity Section of Balance Sheet Premium Imports Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Premium Imports Inc. on November 30, the end of the current year: Common Stock, $10 par $640,000 Paid-In Capital in Excess of Par-Common Stock 192,000 Paid-In Capital in Excess of Par-Preferred Stock 104,700 Paid-In Capital from Sale of Treasury Stock-Common 48,300 Preferred 4% Stock, $50 par 1,745,000 Retained Earnings 3,330,600 Treasury Stock-Common...
(1) Prepare the journal entries and then prepare the Stockholders' Equity section of Doorman Corp.’s balance...
(1) Prepare the journal entries and then prepare the Stockholders' Equity section of Doorman Corp.’s balance sheet at December 31, 2017. Show the computation of all amounts. Doorman’s charter authorizes the company to issue 7,000 shares of 10% preferred stock with par value of $140 and 750,000 shares of no-par common stock. The company issued 1,400 shares of the preferred stock at $140 per share. It issued 187,500 shares of the common stock for a total of $516,000. The company’s...
Balance Sheet Debit/Credit T-Chart 1. Journalize the transactions. (Include entries to close net income and dividends...
Balance Sheet Debit/Credit T-Chart 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) 2. Enter the beginning balances in the accounts and post the...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Obregon,...
EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Obregon, Inc. at the end of 2017 appears as follows: 8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional paid-in capital on preferred 2,500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding 2,000,000 Additional paid-in capital on common 18,000,000 Retained earnings 37,500,000 Total stockholders' equity $65,000,000 Net income for the year was $1,240,000. Dividends...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT