APPLY THE CONCEPTS: Calculate the common and preferred dividendsPacioli Corporation has been incorporated for 30 years. Its currentpaid-in capital is shown to the right. Pacioli has been expandingits operations; its board of directors declared a small dividend of$2,000 in 2009 and no dividend in 2010. The expansion was asuccess, and profits have increased. On December 3, 2011, the boardof directors declared a dividend of $316,500 to stockholders onrecord at December 22, 2011, to be paid on December 29, 2011.Paid-in capital for Pacioli Corporation: Preferred stock, $10 par,5%, 12,000 shares authorized, 7,000 shares issued and outstanding$70,000 Common stock, $3 par, 200,000 shares authorized, 150,000shares issued, 140,000 shares outstanding 450,000 Additionalpaid-in capitalâpreferred stock 49,000 Additional paid-incapitalâcommon stock 168,000 Total paid-in capital $737,000Determine the annual preferred dividend, assuming the number ofshares of preferred stock issued and outstanding has not changedfor the past three years: $? x ?% x? shares = $? How much dividendis in arrears for 2009? $? How much dividend is in arrears for2010? $? Use the information in the above table and calculated tothe above to complete the table below to illustrate thedistribution of the 2011 dividend. Total 2011 dividend declared $?2009 Dividends in arrears for 2009 $? 2010 Dividends in arrearsfor 2010 $? 2011 Current dividend $ ?Total preferred dividends $Dividends to common stockholders $ After you have determined thedividends available to the common stockholders, calculate thedividend per share to be paid to each common stockholder. Ifrequired, round the per share amount to the nearest cent. $ = $ pershare shares Show All Feedback Hide APPLY THE CONCEPTS: Prepare thejournal entries for Pacioliâs dividend> Pacioli uses temporaryaccounts to record dividends and closes those accounts to RetainedEarnings at the end of the period. Use the selection lists to theleft of the journal to illustrate the effect on the accountingequation. If you are not sure about the account titles, refer tothe chart of accounts below the last journal entry. Prepare thejournal entry for preferred dividends required on the declarationdate. GENERAL JOURNAL page DATE DESCRIPTION DOC. NO. POST. REF.DEBIT CREDIT 1 Dec. 3 1 2 2
APPLY THE CONCEPTS: Calculate the common and preferred dividendsPacioli Corporation has been incorporated for 30 years. Its currentpaid-in capital is shown to the right. Pacioli has been expandingits operations; its board of directors declared a small dividend of$2,000 in 2009 and no dividend in 2010. The expansion was asuccess, and profits have increased. On December 3, 2011, the boardof directors declared a dividend of $316,500 to stockholders onrecord at December 22, 2011, to be paid on December 29, 2011.Paid-in capital for Pacioli Corporation: Preferred stock, $10 par,5%, 12,000 shares authorized, 7,000 shares issued and outstanding$70,000 Common stock, $3 par, 200,000 shares authorized, 150,000shares issued, 140,000 shares outstanding 450,000 Additionalpaid-in capitalâpreferred stock 49,000 Additional paid-incapitalâcommon stock 168,000 Total paid-in capital $737,000Determine the annual preferred dividend, assuming the number ofshares of preferred stock issued and outstanding has not changedfor the past three years: $? x ?% x? shares = $? How much dividendis in arrears for 2009? $? How much dividend is in arrears for2010? $? Use the information in the above table and calculated tothe above to complete the table below to illustrate thedistribution of the 2011 dividend. Total 2011 dividend declared $?2009 Dividends in arrears for 2009 $? 2010 Dividends in arrearsfor 2010 $? 2011 Current dividend $ ?Total preferred dividends $Dividends to common stockholders $ After you have determined thedividends available to the common stockholders, calculate thedividend per share to be paid to each common stockholder. Ifrequired, round the per share amount to the nearest cent. $ = $ pershare shares Show All Feedback Hide APPLY THE CONCEPTS: Prepare thejournal entries for Pacioliâs dividend> Pacioli uses temporaryaccounts to record dividends and closes those accounts to RetainedEarnings at the end of the period. Use the selection lists to theleft of the journal to illustrate the effect on the accountingequation. If you are not sure about the account titles, refer tothe chart of accounts below the last journal entry. Prepare thejournal entry for preferred dividends required on the declarationdate. GENERAL JOURNAL page DATE DESCRIPTION DOC. NO. POST. REF.DEBIT CREDIT 1 Dec. 3 1 2 2
Related questions
APPLY THE CONCEPTS: Calculate the common and preferreddividends
Batista Corporation has been incorporated for 30 years. Itscurrent paid-in capital is shown to the right. Batista has beenexpanding its operations; its board of directors declared a smalldividend of $7,900 in 2009 and no dividend in 2010. The expansionwas a success, and profits have increased. On December 3, 2011, theboard of directors declared a dividend of $726,300 to stockholderson record at December 22, 2011, to be paid on December 29,2011.
| Paid-in capital for BatistaCorporation: | |
| Preferred stock, $20 par, 7%,18,000 shares authorized, | |
| 11,000 shares issued andoutstanding | $220,000 |
| Common stock, $3 par, 300,000shares authorized, | |
| 225,000 shares issued, 215,000shares outstanding | 675,000 |
| Additional paid-incapitalâpreferred stock | 154,000 |
| Additional paid-in capitalâcommonstock | 258,000 |
| Total paid-in capital | $1,307,000 |
Determine the annual preferred dividend, assuming the number ofshares of preferred stock issued and outstanding has not changedfor the past three years:
$ x % x shares = $
How much dividend is in arrears for 2009? $
How much dividend is in arrears for 2010? $
Use the information in the above table and calculated to theabove to complete the table below to illustrate the distribution ofthe 2011 dividend.
| Total 2011 dividend declared | $ | |
| 2009 Dividends in arrears for2009 | $ | |
| 2010 Dividends in arrears for2010 | $ | |
| 2011 Current dividend | $ | |
| Total preferred dividends | $ | |
| Dividends to commonstockholders | $ |
After you have determined the dividends available to the commonstockholders, calculate the dividend per share to be paid to eachcommon stockholder. If required, round the per share amount to thenearest cent.
| $ | = | $ per share | |
| shares |
| Helifex , Inc. began operations in 2010 and has the following Capital Stock: | |||||
| Helifex , Inc. Capital Stock: | |||||
| Preferred Stock: | # Shares | Stated Dividend Rate | Par value | ||
| Authorized shares of cumulative, non-participatory preferred stock | 80,000 | 6% | $10 | ||
| Issued shares of prefered stock | 60,000 | ||||
| Outstanding shares of preferred stock | 30,000 | ||||
| Common Stock: | # Shares | ||||
| Authorized shares of $1 par value common stock | 50,000 | ||||
| Issued shares of common stock | 40,000 | ||||
| Outstanding shares of common stock | 10,000 | ||||
| Required: | |||||
| a) | Compute the amount of Preferred Stock dividends. | ||||
| b) | On January 1, 2017, the Board of Directors declared dividends of | $ 35,000 | |||
| Prepare the journal entry for the declaration of the dividends. | |||||
| c) | On March 31, 2017, the dividends are disbursed to stockholders of record. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
| d) | The Board of directors did not declare dividends during 2018. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
| Total dividends for Preferred Stockholders | |||||
| Total dividends for Common Stockholders | |||||
| e) | On June 8, 2019 the Board of Directors declared dividends of | $110,000 | |||
| Determine the allocation of dividends to Preferred and Common Stockholders. | |||||
| f) | The following year, on November 30, 2020, the board declared dividends of | $100,000 | |||
| Determine the allocation of dividends to Preferred and Common stockholders. | |||||
| g) | Explain the advantages and disadvantages of investing in preferred stock. | ||||
