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iPad 12:06 PM v2.cengagenow.com C. Online t Online tea...Online Take MindTap Overview. Last Will a onlinelibra Mobile-2 Moodle: Le… Homework Chapter 12 1. EX. 12 2. EX.12-03 3. EX.12-04 4. EX.12-05 5. EX.12-08 6. EX. 12-09 7. EX.12-14 8. EX. 12-18 Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par and 400,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $36,000; second year, $72,000; third year, $80,000; fourth year, $100,000. Determine the dividends per share on each class of stock for each of the four years. Round your answers to two decimal places. If no dividends are paid in a given year, enter \"0 1st Year 2nd Year 3rd Year Preferred stock (dividends per share) Common stock (dividends per share) Hey The 
Solution
Answer EX 12-01 Dividend payable on Cummulative Preference Shares = 80,000 Shares X $20 X 3% Dividend payable on Cummulative Preference Shares = $48,000 Year 1 Year 2 Year 3 Year 4 Total Dividend Paid 36,000.00 72,000.00 80,000.00 100,000.00 Dividend Paid - Preference Shares 36,000.00 60,000.00 48,000.00 48,000.00 Dividend Paid - Common Stock - 12,000.00 32,000.00 52,000.00 Dividend in Arrears - Preference 12,000.00 Year 1 Year 2 Year 3 Year 4 Dividend Paid - Preference Shares 36,000.00 60,000.00 48,000.00 48,000.00 No. of Preference shares 80,000.00 80,000.00 80,000.00 80,000.00 Dividend per Share 0.45 0.75 0.60 0.60 Year 1 Year 2 Year 3 Year 4 Dividend Paid - Common Stock - 12,000.00 32,000.00 52,000.00 No of Common Stock 400,000.00 400,000.00 400,000.00 400,000.00 Dividend per Share - 0.03 0.08 0.13 Ex. 12-03 -a Journal Entry Date Particulars Dr. Amt. Cr. Amt. 22-Jan Cash 4,140,000.00 180,000 Shares X $23 Common Stock 3,600,000.00 180,000 Shares X $20 Paid-in Capital in Excess of Par - Common Stock 540,000.00 180,000 Shares X $3 (Record the issue of Common Stock) 27-Feb Cash 225,000.00 25,000 Shares X $9 Preferred Stock 175,000.00 25,000 Shares X $7 Paid-in Capital in Excess of Par - Preferred Stock 50,000.00 25,000 Shares X $2 (Record the issue of Preferred Stock) Ex. 12-03 -b. Balance Sheet (Partial) Shareholders\' Equity Paid in Capital Preferred Stock - 25,000 Shares X $7 175,000.00 Common Stock - 180,000 Shares X $20 3,600,000.00 3,775,000.00 Paid-in Capital in Excess of Par - Common Stock 540,000.00 Paid-in Capital in Excess of Par - Preferred Stock 50,000.00 Total Paid-in Capital 4,365,000.00 Ex. 12-04 -a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 22-Jan Cash 3,000,000.00 750,000 Shares X $4 Common Stock 1,125,000.00 750,000 Shares X $1.50 Paid-in Capital in Excess of Par - Common Stock 1,875,000.00 750,000 Shares X $2.50 (Record the issue of Common Stock) 27-Feb Cash 1,050,000.00 17,500 Shares X $60 Preferred Stock 875,000.00 17,500 Shares X $50 Paid-in Capital in Excess of Par - Preferred Stock 175,000.00 17,500 Shares X $10 (Record the issue of Preferred Stock) Ex. 12-04 -b. Balance Sheet (Partial) Shareholders\' Equity Paid in Capital Preferred Stock - 17,500 Shares X $50 875,000.00 Common Stock - 750,000 Shares X $1.50 1,125,000.00 2,000,000.00 Paid-in Capital in Excess of Par - Common Stock 1,875,000.00 Paid-in Capital in Excess of Par - Preferred Stock 175,000.00 Total Paid-in Capital 4,050,000.00 Ex. 12-05 Journal Entry Date Particulars Dr. Amt. Cr. Amt. 23-Nov Land 475,000.00 12,500 Shares X $38 Common Stock 312,500.00 12,500 Shares X $25 Paid-in Capital in Excess of Par - Common Stock 162,500.00 12,500 Shares X $13 (Record the issue of Common Stock in exchange of Land)