Bradster Corporation has the following preferred and common stock outstanding on December 31, 2009:
8% Preferred Stock ($10-par, cumulative, 40,000 shares authorized,
10,000 shares issued and outstanding)……………………………… $100,000
Common Stock ($2-par, 10,000,000 shares authorized,
250,000 shares issued and outstanding)……………………………. $500,000
Total Preferred and Common Stock……………………….. $600,000
Bradster declared a $20,000 cash dividend on March 1, 2013 payable to shareholders of record on April 1, 2013 and paid on May 1, 2013. Record all the appropriate entries for this dividend noting the date of declaration, date of record and payment date – if no entry is required enter “N/A”.
a. March 1, 2013
b. April 1, 2013
c. May 1, 2013
d. Indicate the amount received by each type of stockholder.
e. Assume the Dividend was $50,000 and the Preferred Stock was CUMULATIVE with two years’ preferred dividends in arrears. Indicate the amount received by each type of stockholder
Bradster Corporation has the following preferred and common stock outstanding on December 31, 2009:
8% Preferred Stock ($10-par, cumulative, 40,000 shares authorized,
10,000 shares issued and outstanding)……………………………… $100,000
Common Stock ($2-par, 10,000,000 shares authorized,
250,000 shares issued and outstanding)……………………………. $500,000
Total Preferred and Common Stock……………………….. $600,000
Bradster declared a $20,000 cash dividend on March 1, 2013 payable to shareholders of record on April 1, 2013 and paid on May 1, 2013. Record all the appropriate entries for this dividend noting the date of declaration, date of record and payment date – if no entry is required enter “N/A”.
a. March 1, 2013
b. April 1, 2013
c. May 1, 2013
d. Indicate the amount received by each type of stockholder.
e. Assume the Dividend was $50,000 and the Preferred Stock was CUMULATIVE with two years’ preferred dividends in arrears. Indicate the amount received by each type of stockholder.