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1. Ellie Inc. had 6.5%, $100 par value cumulative preferred stock.
Dividends are paid quarterly, and there are 95,000 shares authorized,
65,000 shares issued, and 50,000 shares outstanding.
a.
b.
c.
d.
Calculate the dividend payout for the full year.
Calculate the dividend payout for each quarter.
If dividends were not paid out for the previous 2 years,
calculate the total dividend payout for this year (including the current year).
Calculate the total par amount that would be reported on the balance sheet.
2. Retained earnings as of 1/1/2023 were $69,000,000. Net income for the year
ending 12/31/2023 was $2,000,000. Equipment was purchased totaling $1,000,000,
bond payments during the year totaled $500,000, and interest expense totaled
$725,000 for the year. Dividends of $100,000 were declared and paid on common
stock, and dividends of $75,000 were declared and paid on preferred stock in 2023.
a.
Calculate the ending retained earnings balance as of 12/31/2023.
3. Retained earnings as of 12/31/2023 were $15,000,000. Net income for the year
ending 12/31/2023 was $600,000. Bonds were issued for $2,000,000, Dividends of
$50,000 were paid, and Treasury Stock was issued for $80,000 during 2023.
a.
Calculate the beginning retained earnings balance as of 1/1/2023.
4. Common stock, $2 par value, 1,000,000 shares issued, 500,000 shares
outstanding, 3,000,000 shares authorized.
a.
b.
c.
Calculate the total par amount that would be reported on the balance sheet.
Calculate the total amount of a cash dividend of $0.50 per share.
Calculate the number of shares of treasury stock.
5. Evan Scott owns 800 shares of $4 par value common stock of a company that
just made a 2-for-1 stock split.
a.
b.
c.
How many shares of common stock would he own after the stock split?
What will be the new par value per share of stock?
What is the total par value before and after the stock split?
6. Sophia Christine own 500 shares of $15 par value common stock of a company that
just made a 3-for-1 stock split.
a.
b.
c.
How many shares of common stock would you own after the stock split?
What will be the new par value per share of stock?
What is the total par value before and after the stock split?
7. Dax owned 5,000 shares of common stock. The company issued a 2% stock
dividend in lieu of a cash dividend.
a.
How many shares of common stock would he own after the issuance?
8. Sawyer Co. issued (sold) 10,000 shares of $6 common stock for a market price of $8
cash per share on 12/31/23.
a.
b.
c.
How much total cash was received by the sale of stock?
What was the total par value of the stock issuance?
What was the amount of the additional paid-in capital?
1. Ellie Inc. had 6.5%, $100 par value cumulative preferred stock.
Dividends are paid quarterly, and there are 95,000 shares authorized,
65,000 shares issued, and 50,000 shares outstanding.
a.
b.
c.
d.
Calculate the dividend payout for the full year.
Calculate the dividend payout for each quarter.
If dividends were not paid out for the previous 2 years,
calculate the total dividend payout for this year (including the current year).
Calculate the total par amount that would be reported on the balance sheet.
2. Retained earnings as of 1/1/2023 were $69,000,000. Net income for the year
ending 12/31/2023 was $2,000,000. Equipment was purchased totaling $1,000,000,
bond payments during the year totaled $500,000, and interest expense totaled
$725,000 for the year. Dividends of $100,000 were declared and paid on common
stock, and dividends of $75,000 were declared and paid on preferred stock in 2023.
a.
Calculate the ending retained earnings balance as of 12/31/2023.
3. Retained earnings as of 12/31/2023 were $15,000,000. Net income for the year
ending 12/31/2023 was $600,000. Bonds were issued for $2,000,000, Dividends of
$50,000 were paid, and Treasury Stock was issued for $80,000 during 2023.
a.
Calculate the beginning retained earnings balance as of 1/1/2023.
4. Common stock, $2 par value, 1,000,000 shares issued, 500,000 shares
outstanding, 3,000,000 shares authorized.
a.
b.
c.
Calculate the total par amount that would be reported on the balance sheet.
Calculate the total amount of a cash dividend of $0.50 per share.
Calculate the number of shares of treasury stock.
5. Evan Scott owns 800 shares of $4 par value common stock of a company that
just made a 2-for-1 stock split.
a.
b.
c.
How many shares of common stock would he own after the stock split?
What will be the new par value per share of stock?
What is the total par value before and after the stock split?
6. Sophia Christine own 500 shares of $15 par value common stock of a company that
just made a 3-for-1 stock split.
a.
b.
c.
How many shares of common stock would you own after the stock split?
What will be the new par value per share of stock?
What is the total par value before and after the stock split?
7. Dax owned 5,000 shares of common stock. The company issued a 2% stock
dividend in lieu of a cash dividend.
a.
How many shares of common stock would he own after the issuance?
8. Sawyer Co. issued (sold) 10,000 shares of $6 common stock for a market price of $8
cash per share on 12/31/23.
a.
b.
c.
How much total cash was received by the sale of stock?
What was the total par value of the stock issuance?
What was the amount of the additional paid-in capital?
