do question 3 using question 2 3. Use the information provided in Problem 2. What is the amount of dividends that commonstockholders would receive this year if the preferred stock were NOT cumulative? 2.Peloton has the following stock outstanding.■ Common Stock-$50,000 ($1 par, 150,000 shares authorized, 50,000 shares issuedand outstanding)Paid-in Capital in Excess of Par, Common Stock-$750,000■ Preferred Stock-$60,000 (15%, $30 par, 10,000 shares authorized, 2,000 sharesissued and outstanding)■ Paid-in Capital in Excess of Par, Preferred Stock-$120,000Given this information, if Peloton pays dividends totaling $50,000 during the year, and if thepreferred stock is cumulative and the dividends on the preferred stock were TWO years inarrears as of the beginning of the year (i.e., Peloton did not pay any dividends to preferredstockholders last year or the year before), what is the amount of dividends that commonstockholders will receive this year?

Dividend - Dividend is the amount paid to Common and Preference shareholders from the profit earned…

Answered: 2. Peloton has the following stock…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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The balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 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 $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding shares
The balance sheet caption for common stock is: Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, and 5,500,000 shares outstanding. a. Calculate the dollar amount that will be presented opposite of this caption. b. Calculate the total amount of a cash dividend of $1.00 per share.c. What accounts for the difference between issued shares and outstanding shares?
1.000 shares of common stock with a par value of $5 is sold for $8. Which of the following is correct: A. Cash is debited for $5,000 B. Common Stock is debited for $5,000 C. Paid in Capital in Excess of Par is credited for $3,000 D. Common Stock is credited for $8,000
Please refer to the equity section of the balance sheet shown as follows: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 Common stock $1 par, 500,000 shares authorized, ? shares issued 20,000 Paid-in capital in excess of par -common stock 350,000 Retained earnings (74,000) Total stockholders' equity $396,000 The amount shown for Retained earnings would be called a(n): net loss. earnings shortfall. retained earnings deficit. loss on sale of stock. 1. Based on the info above, determine the number of common stock issued. 2. Based on the info above determine the issue/market price for the common stock.
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3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 Common stock $1 par, 500,000 shares authorized, ? shares issued 20,000 Paid-in capital in excess of par -common stock 350,000 Retained earnings (74,000)Total stockholders' equity $396,000 The amount shown for Retained earnings would be called a(n):A) net loss.B) earnings shortfall.C) retained earnings deficit.D) loss on sale of stock. 4. Based on the info above, determine the number of common stock issued. 5. Based on the info above determine the issue/market price for the…
The stockholders' equity section of Sheffield Corporation consists of common stock ($10 par) $2,000,000 and retained earnings $519,000. A 10% stock dividend (20,000 shares) is declared when the market price per share is $15. Show the before-and-after effects of the dividend on the following. (a) (b) (c) The components of stockholders' equity. Shares outstanding. Par value per share. Stockholders' equity $ Outstanding shares Par value per share LA $ Before Dividend $ LA LA After Dividend
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