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3 years ago

Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:

1 answer:

6 0

<span>Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: </span>Cumulative preferred stock
In cumulative preferred stocks, the amount of dividend usually given on a fixed-rate annually. But, it shall always be set aside before calculating the dividend for the common stock and the amount will be accrued for the next period if the dividend is not paid on current period.

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Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2006, at a discount of

elixir [45]

Answer:

A. December 18, 2020

Dr Cash 4,080,000

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

Cr Discount on Bond payable 60,000

Cr Cash 3,120,000

B. The LOSS is reported as an ORDINARY INCOME

Explanation:

A. Preparation of Journal entries

December 18, 2020

Dr Cash 4,080,000

($4,000,000/100)*102

Cr 11% Bond payable (Face value) 4,000,000

Cr Premium on issue of Bond payable 80,000

(4,080,000-4,000,000)

January 2, 2021

Dr 9% Bonds Payable ( Face value) 3,000,000

Dr Loss on redemption of Bond 180,000

[3,00,0000-(3,120,000+60,000)]

Cr Discount on Bond payable 60,000

($150,000/25)*10

Cr Cash 3,120,000

(3,000,000*104%)

B. Indication of the income statement treatment of the gain or loss from redemption.

The LOSS is reported as an ORDINARY INCOME

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3 years ago

A/an ____ tort is committed on purpose.

Lisa [10]

I think it would be A

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4 years ago

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Which of the following is NOT a determinant of a shift in demand for Laptops?

lora16 [44]

It's a income i did that quiz

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3 years ago

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Suppose you and your friends decide to go to the beach during spring break. you need to fly from kansas city to miami the servic

Andru [333]

Let's say you and your friends decide to go to the beach for spring break. You need to fly a service from Kansas City to Miami. this market is best characterized as an oligopoly.

Some of the most prominent oligopolies in the United States are film and television production, recorded music, wireless carriers and airlines. From the 1980s onwards, it became common for the industry to be dominated by two or three of his companies. Merger agreements between major players have led to industry consolidation.

An oligopoly market is a market dominated by a few suppliers. They are found in all countries and in various industries. Some are competitive oligopolistic markets, while others are significantly less competitive, or at least appear to be.

High barriers to entry, pricing power, non-price competition, interdependence of firms, and product differentiation are all hallmarks of an oligopoly.

Learn more about oligopoly at

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2 years ago

"A customer buys pharmaceutical and utility stocks in his portfolio. This portfolio would be best characterized as:"

lilavasa [31]

Answer:

Defensive Portfolio

Explanation:

Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.

Many defensive portfolio companies offer dividends with the effect of reducing capital losses.

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3 years ago