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Stock dividends result in a reduction in the balance of the contributed capital account.

 Stock dividends result in a reduction in the balance of the contributed capital account.

32) The entry to record the declaration of a cash dividend includes a credit to retained earnings.

33) During 2010, Temper Pedic Corporation engaged in the following selected transactions:

Jan.1Issued 15,000 common shares at $18 per share.

June 15Reacquired 1,000 shares of common shares sold on Jan. 1 for $19 per share.

Aug.10Sold 600 shares of its repurchased shares purchased on June 15 for $20 per share.

Sept. 30The board of directors declares and distributes a 10% common stock dividend. The current selling price of the common shares is $21 per share.

Nov.30The board of directors declares a cash dividend of $.55 per share payable to shareholders on December 15.

Dec.15Paid the cash dividends declared on November 30.

Record journal entries for the above transactions.

34) During 2007-2011, IPO Corporation had the following issuances of shares outstanding for the entire period:

20,000 shares of $5.00 cumulative preferred shares

50,000 common shares issued at $10 each

Cash dividends declared by the board of directors during 2007-2011 were as follows:

2007none

2008$125,000

2009$200,000

2010$250,000

2011$325,000

Required: Compute the amount of total dividends and dividends per share payable to each class of shares for2007-2011.

Year

Total

Preferred

Per Share

Preferred

Total

Common

Per Share

Common

2007

 

 

 

 

2008

 

 

 

 

2009

 

 

 

 

2010

 

 

 

 

2011

 

 

 

 

 

35) JetNew has the follow share outstanding since their initial share offering:

30,000 shares of $2.00 cumulative preferred shares

60,000 common shares issued at $10 each

The board of directors has declared the following dividends: 

2007none

2008$50,000

2009$80,000

2010$150,000

2011$260,000

What would the journal entry have looked like on the date of declaration for each year? 

36) JetNew has the follow share outstanding since their initial share offering:

50,000 shares of $2.00 cumulative preferred shares

50,000 common shares issued at $15 each

The board of directors has declared the following dividends: 

2007none

2008$50,000

2009$75,000

2010$150,000

2011$300,000

Prepare a table indicating the split of the declared dividends between the common shareholders and the preferred shareh

Dec 09 2019 View more View Less

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