DividendsDividends have been declared at year-end.  For each independent case below, determine the total amount of dividends that each class…

Dividends

Dividends have been declared at year-end.  For each independent case below, determine the total amount of dividends that each class of stock will receive.  For all cases assume there are 8,000 shares outstanding of $10 par value common stock and 2,000 shares outstanding of 10%, $100 par value preferred stock.  Show your calculations.

A

NoNo$B

NoNo$C

$D

Yes

$E

YesNo$

Case	Total Dividends Declared	Preferred Stock Cumulative Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Preferred Dividends in Arrears	Total Amount to Preferred	Total Amount to Common
$40,000	100,000	75,000			Yes	1 year	85,000	3 years	15,000

 

Stock Splits, Dividends and Restrictions on Retained Earnings

Match each item/event pair below with the indicated change in the item.  An individual classification may be used more than once, or not at all.  For each dividend, assume that both declaration and payment or distribution has occurred.

Classification

s

A.     
 

Item

increases

B.     
Item decreases

C.     
Item is unchanged

D.     
Direction of change cannot be determined

ClassificationItem

1.

4.

5.

Stock dividend

6.Total retained earningsCash dividend7.

Stock dividend

8.Par value per common shareStock dividend

Event
Book value per share				Stock dividend
2.		Par value per common share		Cash dividend
3.		Total retained earnings	Stock split
Earnings per common share	Restriction of retained earnings
Number of common shares outstanding
Total paid in capital