Answer:
Preferred stock holders' dividend = $280000
Common stock holders' dividend = $8000
Explanation:
A cumulative preferred stock is one whose dividends are accumulated in arrears and are to paid in the following year(s), if the company fails to pay or partially pay the dividends in a certain year. The yearly dividend on preferred stock is,
Preferred stock dividend = 10000 * 200 * 0.07 = $140000
As the dividends on preferred stock are in arrears for one year, the company will pay a dividend this year on preferred stock of,
Preferred stock dividend to be paid = 140000 + 140000 = $280000
Thus, out of the announced dividend of $288000, $280000 will be paid to the preferred stock holders while the remaining $8000 will be paid to the common stock holders.
Answer:
<u>Ebony Interiors</u>
<u>Balance Sheet as at February 28, 20Y3</u>
Total Assets $1,150,000
Total Liabilities $310,000
Total Equity $840,000
Total Equity and Liabilities $1,150,000
Answer:
Juen 30 2018 Cash $60000 Dr
Accumulated Depreciation $216000 Dr
Loss on Disposal-Plant Equipment $24000 Dr
Plant Equipment $300000 Cr
Explanation:
The sale of an asset requires a firm to write off that asset from the books at cost. The writing off would require the credit to the asset account at cost along with a debit to the accumulated depreciation account that is created against this asset.
We also calculate the gain or loss on disposal of asset. An asset has a gain on disposal if the cash received from its sale is more than its carrying value and vice versa.
Carrying Value = Cost - Accumulated Depreciation
Carrying value = 300000 - 216000 = $84000
The asset loss on disposal = 60000 - 84000 = 24000 loss
We debit the loss on disposal and cash received from sale to complete the journal entry
Answer:
declaration and issuance of a stock dividend.
Explanation:
As the stock dividends will be a distribution of earnings and also, are given to the current stockholders they will be treated as like if the operation was done at the beginning.
Other transactions like issuance of shares, and purchase and sale of rteasury stock will be determinate as weighted average by multipling the months left to the end of the accounting cycle and dividing by 12.
