The payment of dividends
Commmon and preferred stock-issuances and dividends.
Permabilt Corp. was incorporated on January 1, 2003, and issued the following
stock, for cash:
1,200,000 shares of no-par common stock were authorized;
350,000 shares were issued on January 1, 2003, at $23 per share.
400,000 shares of $100 par value, 10.5% cumulative,
preferred stock were authorized, and 140,000 shares were issued on January 1,
2003, at $132 per share.
Net income for the years ended December 31, 2003, 2004, and
2005, was $5,250,000, $7,450,000, and $8,700,000, respectively.
No dividends were declared or paid during 2003 or 2004.
However, on December 17, 2005, the board of directors of
Permabilt Corp. declared dividends of $6,200,000, payable on February 9, 2006,
to holders of record as of January 4,2006.
Required:
a. Use the horizontal model (or write the entry) to show the
effects of:
1. The
issuance of common stock and preferred stock on January 1, 2003.
2. The
declaration of dividends on December 17, 2005.
3. The payment of dividends on February 9, 2006.
b. Of the
total amount of dividends declared during 2005, how much will be received by
preferred shareholders?
The payment of dividends
Commmon and preferred stock-issuances and dividends.
Permabilt Corp. was incorporated on January 1, 2003, and issued the following
stock, for cash:
1,200,000 shares of no-par common stock were authorized;
350,000 shares were issued on January 1, 2003, at $23 per share.
400,000 shares of $100 par value, 10.5% cumulative,
preferred stock were authorized, and 140,000 shares were issued on January 1,
2003, at $132 per share.
Net income for the years ended December 31, 2003, 2004, and
2005, was $5,250,000, $7,450,000, and $8,700,000, respectively.
No dividends were declared or paid during 2003 or 2004.
However, on December 17, 2005, the board of directors of
Permabilt Corp. declared dividends of $6,200,000, payable on February 9, 2006,
to holders of record as of January 4,2006.
Required:
a. Use the horizontal model (or write the entry) to show the
effects of:
1. The
issuance of common stock and preferred stock on January 1, 2003.
2. The
declaration of dividends on December 17, 2005.
3. The payment of dividends on February 9, 2006.
b. Of the
total amount of dividends declared during 2005, how much will be received by
preferred shareholders?
The payment of dividends
Commmon and preferred stock-issuances and dividends.
Permabilt Corp. was incorporated on January 1, 2003, and issued the following
stock, for cash:
1,200,000 shares of no-par common stock were authorized;
350,000 shares were issued on January 1, 2003, at $23 per share.
400,000 shares of $100 par value, 10.5% cumulative,
preferred stock were authorized, and 140,000 shares were issued on January 1,
2003, at $132 per share.
Net income for the years ended December 31, 2003, 2004, and
2005, was $5,250,000, $7,450,000, and $8,700,000, respectively.
No dividends were declared or paid during 2003 or 2004.
However, on December 17, 2005, the board of directors of
Permabilt Corp. declared dividends of $6,200,000, payable on February 9, 2006,
to holders of record as of January 4,2006.
Required:
a. Use the horizontal model (or write the entry) to show the
effects of:
1. The
issuance of common stock and preferred stock on January 1, 2003.
2. The
declaration of dividends on December 17, 2005.
3. The payment of dividends on February 9, 2006.
b. Of the
total amount of dividends declared during 2005, how much will be received by
preferred shareholders?
The payment of dividends
Commmon and preferred stock-issuances and dividends.
Permabilt Corp. was incorporated on January 1, 2003, and issued the following
stock, for cash:
1,200,000 shares of no-par common stock were authorized;
350,000 shares were issued on January 1, 2003, at $23 per share.
400,000 shares of $100 par value, 10.5% cumulative,
preferred stock were authorized, and 140,000 shares were issued on January 1,
2003, at $132 per share.
Net income for the years ended December 31, 2003, 2004, and
2005, was $5,250,000, $7,450,000, and $8,700,000, respectively.
No dividends were declared or paid during 2003 or 2004.
However, on December 17, 2005, the board of directors of
Permabilt Corp. declared dividends of $6,200,000, payable on February 9, 2006,
to holders of record as of January 4,2006.
Required:
a. Use the horizontal model (or write the entry) to show the
effects of:
1. The
issuance of common stock and preferred stock on January 1, 2003.
2. The
declaration of dividends on December 17, 2005.
3. The payment of dividends on February 9, 2006.
b. Of the
total amount of dividends declared during 2005, how much will be received by
preferred shareholders?
