Question

A corporation purchases 5,203 shares of its own $5 par common stock for $23 per share,...

A corporation purchases 5,203 shares of its own $5 par common stock for $23 per share, recording it at cost. What will be the effect on total stockholders' equity?

a.increase by $119,669

b.decrease by $93,654

c.decrease by $119,669

d.increase by $93,654

Texas Inc. has 4,155 shares of 4%, $100 par value cumulative preferred stock and 83,552 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

a.$40.00 per share

b.$4,155 in total

c.$3,342 in total

d.$16,620 in total

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution

1. The correct option is option (c) $119669.

Explanation- When the company purchases its own shares it is recorded on the amount on which it is purchased and since the company is purchasing it's own shares it will decrease the stockholders equity of the company. So there will be a decrease of $119669(5203×23).

31. The correct option is option (d) $16620.

Explanation- The annual dividend on the preferred stock will be:

Face value of preferred stocks× number of preferred stock×rate%

100×4155×4%= 16620.

In case of any doubt please comment below.

Thank you. Please upvote it........

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
4)  Wedge Corporation has the following capital stock outstanding: Common stock, par $1, with 250,000 shares outstanding...
4)  Wedge Corporation has the following capital stock outstanding: Common stock, par $1, with 250,000 shares outstanding for a total par value of $250,000. 8% preferred stock, par $100, with 5,000 shares outstanding, cumulative, for a total par value of $500,000.  They have not received dividends in 2 years prior to this current year.              Part A:             A cash dividend of $150,000 was declared and paid near the end of the current year. Calculate, showing supporting calculations, the current year’s dividend and...
A corporation reacquires 60000 shares of its own $10 par common stock for 3000000 recording it...
A corporation reacquires 60000 shares of its own $10 par common stock for 3000000 recording it at cost A) what is the effect on the corporations revenue of the period B) what is the effect on stockholders equity
Part c Mastiff Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares...
Part c Mastiff Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Mastiff has not paid any dividends for the past two years. This year, Mastiff will pay $300,000 in dividends to its stockholders. Required 1) What portion of the dividend will be paid to preferred stockholders? 2) What portion of the dividend will be paid to common stockholders?
A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it...
A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost. What effect does this transaction have on revenue or expense of the period? What effect does it have on stockholders' equity?
Preferred stock— $25 par value, 10,000 shares authorized, 5,200 shares issued and outstanding $ 130,000 Common...
Preferred stock— $25 par value, 10,000 shares authorized, 5,200 shares issued and outstanding $ 130,000 Common stock—$10 par value, 100,000 shares authorized, 80,000 shares issued and outstanding 800,000 Total paid-in capital $ 930,000 Retained earnings 550,000 Total stockholders’ equity $ 1,480,000 The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years. Dividends on preferred stock are 8 percent of par value and have been paid each year the...
There shall be created 100,000 shares of preferred stock, par value $100 per share, of the...
There shall be created 100,000 shares of preferred stock, par value $100 per share, of the Company authorized to be issued pursuant to the Certificate of Incorporation designated as the “5.00% Cumulative Preferred Stock,” par value $100 per share (the “Preferred Stock”). The holders of shares of the outstanding Preferred Stock shall be entitled, when, as and if declared by the Board of Directors out of funds of the Company legally available therefor, to receive cumulative dividends at the rate...
Preferred Stock 5% $11 Par Value 5,500 shares authorized 4000 shares issued and outstanding Common Stock...
Preferred Stock 5% $11 Par Value 5,500 shares authorized 4000 shares issued and outstanding Common Stock $.20 Par Value 2,000,000 shares authorized 1,650,000 shares issued and outstanding Requirement 1. Sapphire declares cash dividends of $ 28,000 for 2018. How much of the dividends goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.) Sapphire?'s dividend would be divided between preferred and common stockholders in this? manner: Total Dividend Dividend to...
Stockholders' Equity: 5.5% preferred stock, $50 par value, callable at $101 per share, 1200 shares authorized………………..…..…………………….…….………….…………..…………….……………………......
Stockholders' Equity: 5.5% preferred stock, $50 par value, callable at $101 per share, 1200 shares authorized………………..…..…………………….…….………….…………..…………….……………………... $40,000 Common Stock, $1.5 par value, 200000 shares authorized……………………….....………………………………………………..… 216,000 Additional paid-in capital:     Preferred Stock…………………………...…………………….……...………………………………………….. ######     Common Stock……………………………………………………….…………………..……….….………………….. ###### 318,000 Retained Earnings…………………………………………………...……...………………………………………………………….. 226,800     Total stockholders' equity $800,800 Questions: How many shares of preferred stock have been issued? What is the total annual dividend requirement on the outstanding preferred stock? How many shares of common stock have been isued? What is the...
Raphael Corporation’s common stock is currently selling on a stock exchange at $171 per share, and...
Raphael Corporation’s common stock is currently selling on a stock exchange at $171 per share, and its current balance sheet shows the following stockholders’ equity section: Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 85,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 200,000 Retained earnings 340,000 Total stockholders' equity $ 625,000 1. What is the current market value (price) of this corporation’s common stock? 2. What are the par values of the...
TFlounder Corporation has outstanding 9,300 shares of $100 par value, 6% preferred stock and 62,300 shares...
TFlounder Corporation has outstanding 9,300 shares of $100 par value, 6% preferred stock and 62,300 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Flounder declares a cash dividend of $328,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive? Preferred stockholders would receive $enter a dollar amount How much dividend will the common stockholders receive? Common...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT