all journal entry please. Stockholders\' equity of Ernst Company consists of 94,

Question

all journal entry please.

Stockholders' equity of Ernst Company consists of 94,000 shares of $5 par value, 10% cumulative preferred stock and 350,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $140,000 cash dividend at the current year-end Determine the amount distributed to each class of stockholders for this two-year-old company. Par Value per Dividend Preferred Dividend per Number Preferr Preferred Share Preferred Shares Dividend for Rate Share two years Calculation of Preferred Dividend: Total cash dividend To preferred shareholders To common shareholders

Explanation / Answer

Dividend distribution :

Par value per preferred shares Dividend rate Dividend per preferred share Number of preferred share preferred dividend for two years Calculation of preferred dividend 5 10% 0.50 94000 47000*2 = 94000 Total cash dividend 140000 To preferred shareholders 94000 To Common shareholders 46000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.