Basics of importance of dates related to dividend.
1. Matterhorn Company's charter allows it to sell 250,000 shares of $2 par value common stock. To date, the firm has sold 100,000 shares for a total of $600,000. Matterhorn has reacquired 4,000 shares from shareholders at a price of $8 per share. Retained earnings equal $250,000.
a. What total amount of contributed capital should Matterhorn report?
b. What amount should be reported for the Common Stock account?
c. What was the average selling price of each share of common stock?
d. How many shares of stock are outstanding?
e. What amount should be reported for stockholders' equity?
2. On July 9, the Board of Directors at Inoculators, Inc. met and voted a cash dividend of $0.75 per share on common stock and the annual $4 per share cash dividend on preferred. Persons owning the shares as of July 24 are to receive the dividends which will be paid on August 12. In this set of facts:
a. August 12 is the date of ______________.
b. July 24 is the date of ________________.
c. July 9 is the date of _________________.