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
Nat2105 [25]
2 years ago
5

Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common

stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.
Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The issuance of common stock and preferred stock on January 1, 2019.
The declaration of dividends on December 22, 2021.
The payment of dividends on February 12, 2022.
b. Of the total amount of dividends declared during 2021, how much will be received by preferred shareholders?
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)
Business
1 answer:
Fantom [35]2 years ago
4 0

Answer:

Permabilt Corp.

a. Journal Entries:

Debit Cash $26,250,000

Credit Common stock $26,250,000

To record the issuance of 750,000 shares at $35 per share.

2. Debit Cash $56,700,000

Credit Preferred stock $54,000,000

Credit Additional paid-in capital- preferred stock $2,700,000

To record the issuance of 540,000 shares at $105 per share.

3. Debit Cumulative preferred stock dividends $12,150,000

Debit Common stock $2,850,000

Dividends Payable $15,000,000

To record the declaration of dividends.

b. Preferred shareholders will receive $12,150,000 out of the $15 million declared dividends during 2021 ($4,050,000 for each year)

c. Common stock dividends per share = $3.80 ($2,850,000/750,000)

Explanation:

a) Data and Calculations:

Authorized share capital:

Common stock = 2,000,000 shares of no-par value

7.5% cumulative, preferred stock = 800,000 shares at $100 par value

Issued share capital:

Common stock, 750,000 at $35 = $26,250,000

Cash $26,250,000 Common stock $26,250,000

Preferred stock, 540,000 at $105 = $56,700,000

Cash $56,700,000 Preferred stock $54,000,000 Additional paid-in capital $2,700,000

Declared Dividends = $15,000,000

Cumulative preferred stock dividends for 3 years

= $12,150,000($4,050,000 * 3)

Common stock = $2,850,000 ($15,000,000 - $12,150,000)

You might be interested in
If there are 25 number 05 buyers what will be market demand​
Alla [95]

Answer:

its demand increases and when the price of a commodity rises,

Explanation:

demand decreases other things remaining constant.

4 0
1 year ago
The accounting book or computer program where each day's transactions are first recorded is called a:
jek_recluse [69]
The accounting book or computer program where each days transactions are first recorded is called a(n): Journal
Hope this helps!
<3
6 0
3 years ago
Elegance Bath Products, Inc. (EBP) makes a variety of ceramic sinks and tubs. EBP has just developed a line of sinks and tubs ma
Arlecino [84]

Answer:

C) 410 tubs

Explanation:

the contribution margin for sinks is $70 (= $150 - $80) and the contribution margin for tubs is $150 (= $600 - $450).

the molding equipment has 4,050 hours of capacity per year, so it can produce either 2,025 sinks or 810 tubs.

we can determine what product is more profitable if we determine a contribution margin per molding equipment usage ratio:

  • sink = $70 / 2 hours = $35 per hour
  • tub = $150 / 5 hours = $30 per hour

It is more profitable to produce sinks than tubs, but we can sell only 1,000 sinks per year, so even after we product the 1,000 sinks we will have spare molding equipment capacity which we can use to produce tubs.

The spare molding equipment capacity after producing sinks = 4,050 total hours - 2,000 hours used to produce sinks = 2,050 spare molding hours

We can produce 410 tubs (= 2,050 molding hours / 5 hours per tub)

7 0
3 years ago
To minimize the invasion of privacy, _____.
astraxan [27]

Answer:

A. users should be able to review their records and correct any inaccuracies .

Explanation:

Once a transaction is noted and recorded in the software, there shall be access to the user only who had recorded the same, as this will provide for security and accuracy both.

If any third party is allowed to have the access to alter the records in the books then that can ruin the principle of maintaining privacy. Also in that case the responsibilities shall not stand to be completed as this calls for sharing responsibilities, and people will blame each other.

Thus, the user shall be alone to make any changes in the data already recorded by him.

8 0
3 years ago
Activity rates are calculated by a.dividing the budgeted activity cost by the total activity-base usage. b.dividing the total ac
Ierofanga [76]

Answer: The correct answer is option (A)

Explanation: Activity rates is calculated by dividing the budgeted activity cost by the total activity-base usage.

Activity Rate = (Budgeted Activity cost) ÷ ( total activity base usage)

6 0
3 years ago
Other questions:
  • Company B is expected to pay a dividend of $2 per share at the end of year 1 and the dividends are expected to grow at a constan
    14·1 answer
  • Predatory pricing is a type of price discrimination that​ ________. A. allows prices to be cut to the level of variable costs B.
    5·1 answer
  • In general, ____ parking spaces are easier to maneuver. A. parallel B. straight-in C. hill D. angle
    15·1 answer
  • Johanna, a company manager, needs to keep track of how many days Each employee has worked from start date to the current date Jo
    13·1 answer
  • How much would $500 invested at 8% interest compounded continuously be worth after 3 years? round your answer to the nearest cen
    15·1 answer
  • When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending and a recess
    6·1 answer
  • Do u think that the production employees should recieve the same fringe benefits and share of profits as a factory manager? Just
    8·1 answer
  • Goodnight y’all ! I just wanted to tell y’all that
    7·2 answers
  • On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was c
    10·1 answer
  • When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes the
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!