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dimaraw [331]
3 years ago
6

Novak Corp. has 7400 shares of 6%, $50 par value, cumulative preferred stock and 148000 shares of $1 par value common stock outs

tanding at December 31, 2020, and December 31, 2019. The board of directors declared and paid a $14000 dividend in 2019. In 2020, $70000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020?
Business
1 answer:
wlad13 [49]3 years ago
8 0

Answer:

The dividends received by the preferred stockholders in 2020 are $30400.

Explanation:

The cumulative preferred stock is the form of preferred stock that accumulates or accrues dividends in case the company does not pay or partially pay dividends to preferred stock in a particular year. This means that the dividends are accrued and the company will need to pay these dividends first in the future whenever it declares dividends.

The total dividends per year on preferred stock is,

Preferred Stock dividends = 50 * 0.06 * 7400 = $22200 per year

The preferred stock dividend that was accrued at the end of 2019 after the dividend payment of $14000 is,

Accrued dividends - Preferred stock = 22200 - 14000 = $8200

In 2020 the company will need to pay this accrued dividend along with the dividend for 2020 on preferred stock. Thus, in 2020 the preferred stock holders will receive dividends of,

Preferred stock dividend to be paid in 2020 = 8200  +  22200  = $30400

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Should be target market
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3 years ago
Hosung Company's Cash account shows a balance of $801.65 as of August 31 of this year. The balance on the bank statement on that
Sergio039 [100]

Answer:

$603.65

Explanation:

The correct and accurate cash balance need to be calculated. This is done by preparing a Bank Reconciliation Statement.

Bank Reconciliation Statement.

Balance as per Bank Statement                                                $1,383.00

Add Outstanding Lodgments                                                          $0  

Less Unpresented Checks ($260.50 + $425.10 + $331.00)   ($1,016,60)

Add Error on Bank Statement                                                     $237.25

Balance as per Cash Book                                                          $603.65

therefore,

the adjusted ledger balance of cash as of August 31 is $603.65

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3 years ago
A decrease in economic activity and the subsequent cutbacks in production that results in employees being laid off leads to
Elena L [17]
In cases where an organization decrease it economic activity and have major cutbacks, it is expected that employees will be laid off. Laying off may lead to an increase of unemployment rate in a certain country in which it will have bigger scale of effects in taxes, bills to pay and as especially if they have families or dependents.
6 0
3 years ago
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LIFO uses the ______ unit costs for Cost of Goods Sold on the income statement and the ______ unit costs for Inventory on the ba
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LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.

<h3>What is LIFO?</h3>

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).

To learn more about LIFO, please check: brainly.com/question/13779572

3 0
2 years ago
Division A of Barsema, Inc. has operating data as follows: Capacity 20,000 units Selling price $80 per unit Variable costs $45 p
Neporo4naja [7]

Answer:

the minimum price it should charge is $40 per unit.

Explanation:

Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost

<em>Note :  Division A has capacity available to meet B's requirements therefore there is no opportunity cost</em>.

There are Internal savings of $5 as A's variable costs will be $5 less per unit.

Minimum Transfer Price = $45 - $5

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3 years ago
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