Knight - $10,000 Current year dividend $10,000 $150,000 $160,000 Participating dividend $6,000 $90,000 $96,000 $26,000 $240,000 $266,000 Part B The

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Part 1 11-Jan Cash $320,000 Common stock $200,000 Paid in capital in excess of par $120,000 1-Feb Equipment $50,000 Buildiing $160,000 Land $270,000 Preferred stock $400,000 Paid in capital in excess of par $80,000 29-Jul Treasury share $30,600 Cash $30,600 10-Aug Cash $25,200 Retained earnings $5,400 Treasury share $30,600 31-Dec Retained earnings $37,000 Common stock dividend payable $5,000 Preferred stock dividend payable $32,000 31-Dec Income summary $175,700 Retained earnings $175,700 Part B Equity section $200,000 $120,000 Paid in capital in excess of par - Common stock $400,000 $80,000 Paid in capital in excess of par - Preferred stock Retained earnings $133,300 Total stockholder equity $933,300 Question 2 Part A The preferred stock is cumulative and fully participating Preferred stock Common stock Total Dividend in arrear $10,000
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Unformatted text preview: $10,000 Current year dividend $10,000 $150,000 $160,000 Participating dividend $6,000 $90,000 $96,000 $26,000 $240,000 $266,000 Part B The preferred stock is noncumulative and nonparticipating Preferred stock Common stock Total Current year dividend $10,000 $256,000 $266,000 Part C The preferred stock is noncumulative and is participating up to an additional 2% dividend rate. Preferred stock Common stock Total Dividend in arrear $10,000 $10,000 Current year dividend $10,000 $10,000 Participating dividend $4,920 $241,080 $246,000 $24,920 $241,080 $266,000 Common stock (50000 authorized, $10 par value, 20000 share issued and outstanding Preferred stock (5,000 shares authorized, $100.00 par value, 8 percent cumulative and non-participating, 4,000 shares issued and outstanding...
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This note was uploaded on 12/04/2011 for the course ECONOMICS 201 taught by Professor Rcollier during the Spring '10 term at Portland CC.

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