Ch. 8 Accounting HW

Rosie Inc. did not pay dividends on its $7.00, $54 par value, cumulative preferred stock during 2018 or 2019, but had met its preferred dividend requirement in all prior years. Since 2014, 25,000 shares of this stock have been outstanding. Rosie Inc. has been profitable in 2020 and is considering a cash dividend on its common stock that would be payable in December 2020. Required:Calculate the amount of dividends that would have to be paid on the preferred stock before a cash dividend could be paid to the common stockholders. Dividends:______

$7 x 25,000 shares = 175,000 175,000 x 2 years = 350,000 175,000 + 350,000 = 525,000 dividends

From the above data, calculate the Retained Earnings balance as of December 31, 2020:

Retained earning 2019 - net income + dividends

From the above data, calculate the Retained Earnings balance as of December 31, 2019:

Retained earnings, December 31, 2019 = Retained earnings, December 31, 2020 + Dividend declared and paid in 2020 + Net loss for the year ended December 31, 2020 Retained Earnings Dec. $367,800 + Net Loss $34,500 + Dividends $50,400 = 452,700

Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: a. The semiannual dividend on 9% cumulative preferred, $45 par value, 14,100 shares authorized, issued, and outstanding. b. The annual dividend on $2.25 cumulative preferred, 140,000 shares authorized, 84,000 shares issued, 74,200 shares outstanding. Last year's dividend has not been paid. b.The quarterly dividend on 11.0% cumulative preferred, $90 stated value, $106 liquidating value, 42,000 shares authorized, 36,400 shares issued and outstanding. No dividends are in arrears.

a. 9% x $45 x 14,100 = $57,105 / 2 = $28,553 b. Annual dividend = dividend rate x number of shares outstanding $2.25 x $74,200 x 2 yr = $ 333,900 c. annual dividend = dividend x stated value x number of shares outstanding 11% x $90 x 36,400 = 360,360 / 4 = $90,090

Calculate the annual cash dividends required to be paid for each of the following preferred stock issues: a. $3.70 cumulative preferred, no par value; 240,000 shares authorized, 140,000 shares issued. (The treasury stock caption of the stockholders' equity section of the balance sheet indicates that 41,115 shares of this preferred stock issue are owned by the company.) b. 4%, $40 par value preferred, 250,000 shares authorized, 159,000 shares issued, and 73,136 shares outstanding. c. 11.6% cumulative preferred, $100 stated value, $104 liquidating value; 89,000 shares authorized, 43,000 shares issued, 32,000 shares outstanding.

a. Annual cash dividend = 3.7 * (3140,000-41,115) b. Preferred dividend = 4% x $40 x outstanding shares $73,136 c. 0.0116 x $100 stated value x $32,000 shares outstanding

Common stock without par value, 3,800,000 shares authorized, 800,000 shares issued, and 720,000 shares outstanding$3,900,000 Required: Calculate the average price at which the shares were issued. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. If a cash dividend of $0.15 per share were declared, calculate the total amount of cash that would be paid to stockholders. What accounts for the difference between issued shares and outstanding shares? a. average price at which the shares were issued: b. If these shares had been assigned a stated value of $1 each, show how the caption here would be different. --> 1. common stock stated value of $1 per share: 3,800,000 shares authorized, 800,000 issued and 720,000 shares outstanding --> 2 Additional paid in capital: c. Total cash dividend d. difference between issued shares and outstanding shares

a. Average price at which the shares were issued = Amount received / Number of shares issued $3,900,000/ $800,000 = 4.878 = 4.88 b. --> 1. Common stock = shares issued = 800,000 x $1 assigned ---> 2. Additional paid in capitol: 3,900,000- 800,000 = 3,100,000 c. Total cash dividend = dividend per share * number of shares outstanding $0.15 x $720,000 shares = $108,000 total cash dividend d. treasureystock

Assume that you own 7,000 shares of Briant Inc.'s common stock and that you currently receive cash dividends of $0.7 per share per year.Required: If Briant Inc. declared a 2% stock dividend, how many shares of common stock would you receive as a dividend? Calculate the cash dividend per share amount to be paid after the stock dividend that would result in the same total cash dividend (as was received before the stock dividend). (Round your answer to 2 decimal places.) If the cash dividend remained at $0.7 per share after the stock dividend, what per share cash dividend amount without a stock dividend would have accomplished the same total cash dividend? (Round your answer to 3 decimal places.) a.Dividend shares b.Total cash dividend per share c.Total cash dividend per share

a. Dividend shares: 2% x 7,000 = 140 b. Total cash dividend per share: 7,000 x $0.7 = 4,900/ 7,140 c. Total cash dividend per share: 7,140 x $0.7 = 4,998/7,000

The balance sheet caption for common stock is the following Common stock, $6 par value, 2,300,000 shares authorized, 1,560,000 shares issued, 1,110,000 shares outstanding. $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.21 per share. c. What accounts for the difference between issued shares and outstanding shares?

a. dollar amount = number of shares issued x par value = 1,560,000 shares issued x $6 = $9,360,000 b. cash dividends = shares outstanding x dividend per share 1,110,000 x $0.21 = $233,100 c. treasury stock