Ask Experts Questions for FREE Help !
Ask
    MEGAA's Avatar
    MEGAA Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 2, 2011, 01:19 AM
    1% common stock dividend
    Declared semiannual dividends of $1.20 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding , to be capitalized at the fair market value of the common stock, which is estimated at $30.

    Aug 29 Cash- 1,280,000 (Debit)
    Treasuary stock - 1,040,000 (credit)
    Paid-in Capital from Sale of Treasury Stock - $240,000 (credit)

    Sep 1 Cash Dividends - 165,750 (credit)
    Cash dividens payable - 165,750 (debit)
    Sep 1 Stock Dividends ?
    Stock dividends distributable?
    Paid-in Capital in Excess of Par Value - Common Stock?
    Debs_830's Avatar
    Debs_830 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Feb 14, 2011, 02:10 PM
    Assuming this is a question from the following book:
    Financial and Managerial Accounting By Carl S. Warren, James M. Reeve, Jonathan Duchac
    The first part of the Sept 1 entry gives you the remaining amount of common stock. 165,750 - 80,000 shares of preferred at 1.2 per share = 69750 / 0.15 = 465,000. This is the amount of stock that is being declared. You'll have to multiply this amount by $30 and then by 1% that will give the amount of the stock dividends. Then to find the amount of distributable you will multiply 465,000 by the original dividend amount which is $25 par. The final entry is the difference between the 2 amounts.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How to calculate dividend per share for preferred and common stock [ 8 Answers ]

A company has declared the following annual dividend over a six year period 2003, $21,000. 2004 $50,000. 2005 $15,000. 2006 $80,000. 2007 $90,000. 2008 $140,000. During the entire period the outstanding stock of the company was composed of 10,000. Shares of 4% preferred stock, $75 par, and...

Based on the following information, calculate the dividend yield on common stock: [ 1 Answers ]

Market Price Per Share : 50.00 Earnings Per share: 10.00 Dividends Per Share: 2.00 Investor's Cost Per Share; 40.00

Calculating Preferred Stock and Common Stock Dividend [ 1 Answers ]

I want help understanding calculating dividends on preferred stock, here is the question: Golf-Easy Company has 10,000 shares of 3% preferred stock of $50 par and 25,000 shares of $100 par common stock. The following amounts were distributed as dividends: Year 1 $40,000 Year 2 ...

Common stock and dividend [ 2 Answers ]

1) An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16? a. 25.01 b. 46.88 c. 50.63 d. none of the above I have many more questions that I need answered by this weekend. I am willing to pay $ for this....

View more questions Search