Question

The following elements of shareholder’s equity are adapted from the balance sheet of Highest Manufacturing Ltd.:...

The following elements of shareholder’s equity are adapted from the balance sheet of Highest Manufacturing Ltd.:
Shareholder’s Equity
Preferred shares, $1.25 cumulative,
100,000 shares authorized, 18,000 shares issued and outstanding​​ $150,000
Common shares, 200,000 shares authorized, 60,000 shares issued
and outstanding​​​​​​​​​ 400,000
The company has paid all dividends through 2015
Required
Compute the dividends paid to preferred shareholders and to common shareholders for 2018 and 2019 if total dividends declared are $80,000 in 2018 and $30,000 in 2019. Round your answers to nearest dollar.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Amount $
Annual Preferred Dividend        22,500 (1.25 x 18,000 )
Preferred dividend in arrear        45,000 (2016 & 2017 )
(a) Total Dividend Declared in 2018 80,000
Allocated to
Peferred Shareholders        67,500 ( 45,000 + 22,500 )
Common Share holders        12,500 (80,000 - 67,500 )
Total Allocation $ 80,000
(b) Total Dividend Declared in 2019 30,000
Allocated to
Peferred Shareholders        22,500
Common Share holders          7,500 ( 30,000 - 57,500 )
Total Allocation $ 30,000
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
Buildex Corporation's balance sheet reported the following shareholders' equity as of December 31, 2021: Shareholders’ Equity...
Buildex Corporation's balance sheet reported the following shareholders' equity as of December 31, 2021: Shareholders’ Equity Share capital: Preferred shares, $ 4 cumulative, 30,000 shares                  authorized, 4,000 shares issued                                                       $   850,000 Common shares, unlimited shares authorized,                  175,000 shares issued                                                                           1,350,000 Total share capital                                                                                                 $ 2,000,000 Retained earnings                                                                                                        300,000 Total shareholders' equity                                                                                   $ 2,300,000 Additional information: No dividends were declared in the prior year - 2020. Dividends were fully paid in all...
Garda World Security Corporation has the following shares, taken from the equity section of its balance...
Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020. Preferred shares, $4.54 non-cumulative, 51,000 shares authorized and issued* $ 3,264,000 Common shares, 86,000 shares authorized and issued* 1,376,000 *All shares were issued during 2018. During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown in the last column of the following schedule. Required: Part A 1. Calculate the total dividends...
Garda World Security Corporation has the following shares, taken from the equity section of its balance...
Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2014.   Preferred shares, $4.38 non-cumulative,          35,000 shares authorized and issued* 2,240,000   Common shares,          70,000 shares authorized and issued* 1,120,000 *All shares were issued during 2012. During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown in the last column of the following schedule. Required: Part A 1. Calculate the total dividends paid...
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...
Sheffield Corporation’s December 31, 2018 balance sheet showed the following: 7% preferred stock, $20 par value,...
Sheffield Corporation’s December 31, 2018 balance sheet showed the following: 7% preferred stock, $20 par value, cumulative, 14600 shares authorized; 9600 shares issued $ 192000 Common stock, $10 par value, 1010000 shares authorized; 985000 shares issued, 970000 shares outstanding 9850000 Paid-in capital in excess of par—preferred stock 28500 Paid-in capital in excess of par—common stock 11630000 Retained earnings 3760000 Treasury stock (15000 shares) 315000 Sheffield’s total paid-in capital was    A. $22015500.    B. $11750500.    C. $21385500.    D....
Flatfish Limited reported the following items in shareholders’ equity on December 31, 2020: Share capital: Preferred...
Flatfish Limited reported the following items in shareholders’ equity on December 31, 2020: Share capital: Preferred shares, $5 cumulative dividend, 162,000 shares issued    and outstanding $16,200,000 Share capital: Common shares, 708,000 issued and outstanding 28,320,000 Retained earnings 27,480,000 A) No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $5,226,600 were declared. Calculate how much would be paid to each class of shares. Preferred Common Total 2018 arrears 2019 arrears 2020 $Enter a total amount. $Enter...
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a...
The following is the shareholders’ equity section of Ayayai Corp. at December 31, 2020: Preferred shares,a authorized 100,000 shares; issued 33,000 shares $ 1,155,000 Common shares (unlimited authorized, 51,000 issued) 1,275,000 Contributed surplus 107,000 Total paid-in capital 2,537,000 Retained earnings 2,962,600 Total shareholders’ equity $ 5,499,600 a The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Q. No dividends were paid in 2018 or 2019....
A corporation has the following: 6% Preferred Stock, $50 par, 500,000 shares authorized, 100,000 issued and...
A corporation has the following: 6% Preferred Stock, $50 par, 500,000 shares authorized, 100,000 issued and outstanding Common Stock, $2 par, 8,000,000 shares authorized,   5,000,000 issued and outstanding The company paid $750,000 of dividends in 2019.  Calculate the amounts paid to the preferred and common shareholders. Determine the amount paid to each class of stock listed above if the preferred stock is cumulative and no dividends were paid in 2017 or 2018 What is the dollar impact an any potential 2020...
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...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value,...
Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred stock—5% cumulative, $___ par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock—$___ par value, 4,000 shares authorized, issued, and outstanding 100,000 Retained earnings 370,000 Total stockholders' equity $ 520,000 1. What are the par values of the corporation’s preferred stock and its common stock? Par Value Corporation's preferred stock Corporation's common stock 2. If no dividends are in arrears at the current date, what is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT