Student Name:
Class:
Total Per Per
Year Dividends Total Share Total Share
2013 4,000$ 4,000$ 2.00$ –$ –$
2014 6,000 6,000 3.00 – –
2015 110,000 24,000 12.00 86,000 2.15
Correct! Correct! Correct! Correct!
2013 4,000$ 4,000$ 2.00$ –$ –$
2014 6,000 6,000 3.00 – –
2015 110,000 62,000 31.00 48,000 1.20
38,000$ 19.00$
24,000 12.00
62,000$ 31.00$ 48,000$ 1.20$
Correct! Correct! Correct! Correct!
7,750$
Correct!
$1000 Arrearage to Preferred – balance to Preferred
10% to Preferred – Balance to Common
Preferred Stock
Common Stock
WILSON CORPORATION
Totals
2015 Preferred dividend
Arrearage from 2013 & 2014
Computation of 2015 dividend:
Preferred – balance to Common
$1000 Arrearage to Preferred – 10% preference to
Analyze: How much in total dividends should be paid to the stockholder for the fiscal year, 2015?
McGraw-Hill
Instructor
All dividends to Preferred
All dividends to Preferred
Case A
Problem 20.01A
All dividends to Preferred
Case B
Common:
Shares 40,000
Par-value 10$
Preferred
Shares 2,000
Par-value 60$
Dividend rate 20.00%
2013 Dividend 4,000$
2014 Dividend 6,000$
2015 Dividend 110,000$
Given Data P20.01A
Student Name:
Class:
6,750$
6,750
6,750
20,250$ <–Correct!
13.50$ <–Correct!
3,750$ <–Correct!
0.27$ <– Correct!
24,000$
24,000
–$ <–Correct!
20,250$ <–Correct!
3. Dividend on each share of common stock
4. Total dividends due for 2011, 2012, and 2013
2013 Dividend
Total dividends to preferred stockholders
2. Total dividends paid
Dividend available to common stockholders
Dividend on each share of preferred stock
2012 Dividend
Part II
Arrearage to be carried forward to future years.
90,000
–$ <–Correct!
Analyze: Amount due preferred stockholders at $50,000 13,500$ <–Correct!
Problem 20.02A
McGraw-Hill
Instructor
HATTEN CORPORATION
Less amount paid in 2013
Total dividends to preferred stockholders
2. Dividend on each share of preferred stock
3. Dividend available to common stockholders
4. Dividend on each share of common stock
Arrearage to be carried forward to future years.
Part I
2011 Dividend
2012 Dividend
5. Total dividends due for 2011, 2012, and 2013
Less amount paid in 2013
1. All $13,500 to preferred for dividends in arrears
2013 Dividend
Stockholders’ Equity
Preferred Stock (9% cumulative, $50 par value,
2,000 shares authorized) At Par Value
(1,500 shares issued) 75,000
Common Stock (no-par value, with stated value
of $25, 20,000 shares authorized)
At Stated Value (14,000 shares issued) 350,000
Years for which dividends have not been paid: 2011
2012
Dividend declared after completion of year 2013 24,000$
Dividend declared after completion of year 2013 90,000$
Part II – Additional Information
December 31, 2013
Equity Section
Given Data P20.02A
Balance Sheet
HATTEN CORPORATION
Part I – Additional Information