Assume that all the stock was issued on january 1 and that


A portion of the stockholders' equity section from the balance sheet of Walland Corporation appears as follows:

Preferred stock, 9% cumulative, $50 par, 40,000 shares authorized, issued and outstanding- $2,000,000

Preferred stock, 12% non-cumulative, $100 par, 8,000 shares authorized, issued, &outstanding- $800,000

Common Stock, $5 par, 400,000 shares authorized, issued & outstanding- $2,000,000

Total paid in capital- $4,800,000

Assume that all the stock was issued on January 1 and that no dividends were paid during the first two years of operation. During the third year, Wall and Corporation paid total cash dividends of $736,000.

A. Compute the amount of cash dividends paid during the 3rd year to each of three classes of stock.

Cumulative Dividends-

Non-Cumulative Dividends-

Common Stock-

B. Computer the dividends paid per share during the 3rd year for each of the 3 classes of stock.

Cumulative Dividends- Per share

Non-Cumulative Dividends- Per share

Common Stock- Per share

c. What was the average issue price of each type of preferred stock?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Assume that all the stock was issued on january 1 and that
Reference No:- TGS01104570

Expected delivery within 24 Hours