1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skelet666 [1.2K]
3 years ago
13

E15-9 (L01,3) (Preferred Stock Entries and Dividends) Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred

stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2017. Instructions Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears that should be reported on the December 31, 2017, balance sheet? How should these dividends be reported? 814 Chapter 15 Stockholders’ Equity (b) If the preferred stock is convertible into seven shares of $10 par value common stock and 4,000 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (c) If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders’ equity section?
Business
1 answer:
Dimas [21]3 years ago
3 0

Answer:

(a)

Preferred stock Dividend = ( 10,000 x 100 ) x 8% = $80,000

Cumulative Dividend

      Date                   Dividend for the year      Balance

December 31, 2015           $80,0000              $80,000

December 31, 2016           $80,0000              $160,000

December 31, 2017           $80,0000              $240,000

Payable of $240,000 Dividend will be reported on the Balance Sheet.

(b)                                                          Dr.                       Cr.

Preferred Stock (4,000 x $100)   $400,000

Common stock ((4000 x 7) x $10)                            $280,000

Paid-In Capital in excess of Par - Common share  $120,000

(c)

Cash ( 4000 x 107 )                       $428,000

Preferred Stock (4000 x $100)                                 $400,000

Paid-In Capital in excess of Par - Preferred share  $28,000

It will be reported in balance sheet as follow:

Equity                                                                               $

Preferred Stock                                                          400,000

Paid-In Capital in excess of Par - Preferred share     28,000

Explanation:

(a) Last dividend was paid on December 31, 2014, the subsequent 3 years are outstanding until December 31, 2017, so the total payable dividend is $240,000 which will be reported on Balance sheet.

(b) 4000 preferred shares on par value are converted to 7 common shares each at $10 par value.

(c) Preferred stock issued @ $107 will be reported as Preferred stock of $400,000 and Paid-In Capital in excess of Par - Preferred share of $28,000.

You might be interested in
Boxer Inc. reported inventory at the beginning of the current year of $360,000 and at the end of the current year of $411,000. I
Lerok [7]

Answer:

9.75

Explanation:

4 0
3 years ago
Happy Foods and General Grains both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a b
labwork [276]

Answer: introduce more differentiation

Explanation: Product differentiation is a method of using various tactics to make a product stand out from the rest of the similar products sold by a competitor, in an effort to make it more appealing to its customer base. This means differentiating the product so much, that it will make it more attractive for customers to buy. This can be anything from making the product's packaging more aesthetically appealing, including some form of a bonus/gift for purchasing the product (like getting a free toy in each cereal box) etc. In the end by applying product differentiation the one company will increase the customer benefits of purchasing this product from them, hereby gaining a competitive advantage over the other company.

3 0
3 years ago
Sam, Joe, Lynn, and Kori are four business colleagues traveling together on a business trip. There are four adjacent seats avail
Pepsi [2]

Answer:

  • A. Sam, Joe, Lynn, Kori
  • B. Kori, Lynn, Sam, Joe

Explanation:

The constraints we have are two in number.

1. Sam and Kori cannot sit next to each other

2. Lynn and Kori need to sit next to each other.

Both options A and B satisfy both these constraints because Sam and Kori are seated apart and Lynn and Kori are seated together.

Option C satisfies only one constraint which is that Kori is sitting next to Lynn. She is sitting next to Sam however so this option is wrong and by extension, so is option D as well.

4 0
3 years ago
The administrative department is not responsible for _____ communication.
Nonamiya [84]

Answer:

I will say c I not shore 100%

4 0
3 years ago
You were asked to investigate extremely high, unexplained merchandise shortages at a department store chain. Classify each of th
Nutka1998 [239]

Answer:

(a) INDICATOR OF FRAUD

Explanation:

The reason is that the supervisor has an outside business setup related to the department's setup which gives rise to a conflict of interest.

8 0
3 years ago
Other questions:
  • All sources of income is also known as which of the following?
    9·2 answers
  • Which of the following is a disadvantage of providing flexibility in benefit choice? Group of answer choices There is a risk tha
    7·1 answer
  • Cooke Corporation reports that at an activity level of 7,000 units, the total variable cost is $590,730, and the total fixed cos
    7·1 answer
  • You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popula
    10·1 answer
  • Airline companies around the world are experiencing increased costs in part due to _________.\
    14·1 answer
  • The senior managers of a grocery store chain have a disagreement over the direction of the company. One faction wants to leverag
    6·1 answer
  • Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances at the beginning and end
    6·1 answer
  • Because the amount paid is linked to certain predefined behaviors or outcomes, ______ is specifically designed to energize, dire
    8·1 answer
  • Jackie has determined some possible careers that would suit her include being a photographer, a graphic artist, a web designer,
    7·1 answer
  • An amendment to the texas constitution requires a balanced budget. this means that _____. pols
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!