14) Capital Venture, Inc. began operations in January 2011 by issuing common stock for $6 per share. Net income for 2011 was $100,000 and total dividends were $11,500.
Part A:
Fill in the missing amounts in the spaces provided:
Shareholders' equity: December, 31, 2011
Preferred stock, 6% cumulative, $50 par value, 1,000 shares
authorized & issued1. $_______
Common stock, $1 par value, 8,000,000 shares authorized, 90,000
2. _____________ shares issued
Paid-in capital in excess of par3. $________
Retained earnings4. $________
Treasury stock (5,000 shares at cost) (35,000)
Total shareholders' equity5. $
Part B:
Use the above information to answer the following questions:
1.
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From which financial statement did the above information come?
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2.
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If you hold
ONE SHARE
of the preferred stock, how much of a dividend would you be entitled to before dividends are paid to common stockholders?
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3.
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How many shares of common stock are outstanding?
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|
4.
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If you hold
ONE SHARE
of common stock, how much of a dividend would you receive for the year?
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|
15) One of Bull Beary, Inc.’s financial statements included the following section:
Shareholders’ equity:
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12/31/11
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Preferred stock, $100 par, 5% noncumulative
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$ 100,000
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Common stock, $1 par value
|
10,000
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Additional paid-in capital, common stock
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60,000
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Retained earnings
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100,000
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Treasury stock, 2,000 shares at $6
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(12,000)
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1.
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From which financial statement did the above information come?
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2.
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How many shares of preferred stock have been issued?
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3.
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How many shares of common stock have been issued?
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4.
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What was the total amount received from issuing common stock?
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5.
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What was the average selling price of a share of common stock?
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6.
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Beginning retained earnings is $50,000 and net income is $61,000. How much are the total dividends declared in 2011?
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|
7.
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If you hold
ONE SHARE
of the preferred stock, how much of a dividend would you be entitled to before dividends are paid to common shareholders?
|
|
8.
|
How many shares of common stock are outstanding?
|
|
9.
|
If you hold
ONE SHARE
of common stock, how much of a dividend would you receive for the year?
|
|