Problem 4 - DividendCalculations & Journal Entries for EquityPart A Directions: ShorelineCompany has...Problem 4...

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Problem 4 - DividendCalculations & Journal Entries for Equity
Part A Directions: ShorelineCompany has 10,000 shares outstanding of $50 par value, 5%cumulative preferred stock and 50,000 shares of $2 par value commonstock. The company declared cash dividends of $110,000.
Dividend Calculation #1: If noarrearage on the preferred stock exists, how much in totaldividends and in dividends per share is paid to each class ofstock?
Dividend Calculation #2: Ifone year’s dividend arrearage on the preferred stock exists, howmuch in total dividends and in dividends per share is paid to eachclass of stock?
Part B Directions: Preparejournal entries for the following 2016 equity relatedtransactions.
Feb 1 Issued 10,000 shares of $5 parvalue common stock at $30 cash per share.
Jul 1 Issued 10,000 shares of $25par value preferred stock at $120 cash per share
Aug 1 Purchased back 3,000 shares ofcommon stock at $31 cash per share.
Oct 1 Resold 1,200 shares oftreasury stock at $32 cash per share.
Date Description Debit Credit

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Answer to Problem 4 Part APreferred StockNumber of shares 10000Par Value 50 per shareDividend Rate 5Value of Preferred Stock Number of shares Par ValueValue of Preferred Stock 10000 50Value of Preferred Stock 500000Annual Dividend Value of Preferred Stock Dividend See Answer

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In: AccountingProblem 4 - DividendCalculations & Journal Entries for EquityPart A Directions: ShorelineCompany has...Problem 4 - DividendCalculations & Journal Entries for EquityPart A Directions: ShorelineCompany has 10,000 shares outstanding of $50 par value, 5%cumulative preferred stock and 50,000 shares of $2 par value commonstock. The company declared cash dividends of $110,000.Dividend Calculation #1: If noarrearage on the preferred stock exists, how much in totaldividends and in dividends per share is paid to each class ofstock?Dividend Calculation #2: Ifone year’s dividend arrearage on the preferred stock exists, howmuch in total dividends and in dividends per share is paid to eachclass of stock?Part B Directions: Preparejournal entries for the following 2016 equity relatedtransactions.Feb 1Issued 10,000 shares of $5 parvalue common stock at $30 cash per share.Jul 1Issued 10,000 shares of $25par value preferred stock at $120 cash per shareAug 1Purchased back 3,000 shares ofcommon stock at $31 cash per share.Oct 1Resold 1,200 shares oftreasury stock at $32 cash per share.DateDescriptionDebitCredit

Problem 4 - DividendCalculations & Journal Entries for Equity

Part A Directions: ShorelineCompany has 10,000 shares outstanding of $50 par value, 5%cumulative preferred stock and 50,000 shares of $2 par value commonstock. The company declared cash dividends of $110,000.
	Dividend Calculation #1: If noarrearage on the preferred stock exists, how much in totaldividends and in dividends per share is paid to each class ofstock?
	Dividend Calculation #2: Ifone year’s dividend arrearage on the preferred stock exists, howmuch in total dividends and in dividends per share is paid to eachclass of stock?













Part B Directions: Preparejournal entries for the following 2016 equity relatedtransactions.
	Feb 1	Issued 10,000 shares of $5 parvalue common stock at $30 cash per share.
	Jul 1	Issued 10,000 shares of $25par value preferred stock at $120 cash per share
	Aug 1	Purchased back 3,000 shares ofcommon stock at $31 cash per share.
	Oct 1	Resold 1,200 shares oftreasury stock at $32 cash per share.

	Date	Description	Debit	Credit
	Date	Description	Debit	Credit