SCh11

Fundamentals of Financial Accounting with Annual Report

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Student Name: Instructor Clas : McGraw-Hil /Irwin Coached Problem 1 -4 WATER TOWER COMPANY Stock Dividends Prefer ed Com on (6,0 0 (30,0 0 shares) shares) Total Case A- Prefer ed is noncumulative: Prefer ed $4,20 $4,20 Balance to com on $25,80 $25,80 $4,20 $25,80 $30,0 0 Per share $0.70 $0.86 Case B- Prefer ed is cumulative: Prefer ed: Ar ears $8,40 $8,40 Cur ent year $4,20 $- $4,20 Balance to com on $- $- $- $12,60 $- $12,60 Per share $2.10 $- Case C- Prefer ed is cumulative: Prefer ed: Ar ears $8,40 $8,40 Cur ent year $4,20 $4,20 Balance to com on $53,40 $53,40 $12,60 $53,40 $6 ,0 0 Per share $2.10 $1.78
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WATER TOWER COMPANY Schedule of Comparative Dif erences (with com ents) Amount of Dol ar Increase (Decrease) Item Cash Dividend - Case C Stock Dividend As ets $6 ,0 0 decrease No as ets were disbursed Liabilities Cur ent liabilities increased No ef ect - no contractual $6 ,0 0 on declaration date and liability was created. decreased $6 ,0 0 on payment
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SCh11 - S tudent Name: Instructor Class: McGraw-Hill/Irwin...

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