The determination of the dividends per share for the cumulative preferred stock and the common stock for each is as follows:
20Y1 20Y2 20Y3
Dividend per share:Preferred Stock $1.50 $0.60 $2.40
Common Stock $0.22 $0 $0.63
How is the dividend per share determined?The dividend per share is the allotted dividend divided by the number of shares in the issue for each class of stock.
However, the dividend is first allocated to the preferred stockholders before the common stockholders.
In any year where the dividend is not sufficient for the cumulative preferred stockholders, whatever is available is shared with the preferred stockholders with the common stockholders getting nothing.
In the year that sufficient dividends exist, the cumulative preferred dividend arrears must be settled in addition to the year's fixed dividend.
Cumulative Preferred 3% Stock = 15,000 shares
Par value = $50
Value of Cumulative preferred stock, 3% stock = $750,000 (15,000 x $50)
Fixed preferred dividend each year = $22,500
Common Stock = 50,000 shares
Par value = $30
Value of Common stock = $1,500,000 (50,000 x $30)
Dividend Distribution Preferred Common Stock
20Y1 $33,800 $22,500 $11,300 ($33,800 - $22,500)
Dividend per share $1.50 $0.226 ($11,300/50,000)
20Y2 9,000 $9,000 $0
Dividend per share $0.60 $0
20Y3 67,500 $36,000 $31,500 ($67,500 - $36,000)
Dividend per share $2.40 $0.63 ($31,500/50,000)
Preferred stock dividend for 20Y2 = $36,000 ($13,500 + $22,500)
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Stan sells new cars at a local dealership. He receives a 32% commission on the profit. Last month he sold 20 cars, for a total of $21,385 dealer profit. How much did he earn in commission?
On the revenue, he gets a 32% commission. He sold 20 cars in the past month, generating a dealer profit of $21,385. He receives $6843.2 in commission.
Commission: What does that mean?A commission in business is a payment made to a person or organization based on the sale of a good or service; it is typically measured as a percentage. Gross margin times the proportion of commissions is the most common commission formula.
The percentage or fixed payment attached to a specific volume of sales is known as the commission rate. For illustration, a fee can be $30 for each sale or 6% of sales.
How are commissions determined?Simply multiply the sale price by the commission rate and divide the result by 100. Consider this calculation: A blue widget costs $70. The salesperson is paid on commission; each deal nets him or her 14%, or $9.80.
In the above questions:
sales total made= $ 21,385
percentage of commission= 32%
Commission amount= 21,385 X 32%
= $6843.2
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according to the law of supply, price and quantity supplied have a(n) ______ relationship.
Price and amount provided have a positive relationship, according to the law of supply.
A positive relationship is one in which the two persons involved listen to one another, communicate openly and without bias, and appreciate and support one another both emotionally and practically.
In order to increase someone else's self-esteem, listening is an essential talent. It is the quiet type of flattery that makes individuals feel appreciated and encouraged. The key to a good interaction is to listen and comprehend what people are saying to us, and vice versa.
Building healthy connections has a good impact on our mental and physical health as well as our happiness, security, and sense of purpose in life. Relationships have health benefits: Our mental health is significantly influenced by our relationships.
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Match the terms to their definition.
1. capital gains
2. commission
3. dividends
4. income.
5. Interest
6. stockholder
7. taxable income
an individual who owns one or
more shares of stock in a joint stock
company
the money received for work or
products sold and from other sources,
such as rent or investments
money paid to people who own
stock in a company from the company's
earnings
income earned by the sale of
assets, such as stocks or property, which
Income is the difference between the
price paid and the selling price
the portion of income that is subject
to being taxed
money the bank gives you when
you keep your money in one of their
accounts
a fee paid to an employee for their
sale or services, which fee is usually
based on a percentage of the sale price
The terminologies should be matched with their definition as follows:
Stockholder: an individual who owns one or more shares of stock in a joint stock company.Income: the money received for work or products sold and from other sources, such as rent or investments.Dividends: money paid to people who own stock in a company from the company's earnings.Capital gains: income earned by the sale of assets, such as stocks or property, which income is the difference between the price paid and the selling price.Taxable income: the portion of income that is subject to being taxed.Interest: money the bank gives you when you keep your money in one of their accounts.Commission: a fee paid to an employee for their sale or services, which fee is usually based on a percentage of the sale price.Who is a stockholder?A stockholder can be defined as an independent individual, organization or social group that has an interest in a particular business firm (company), and as such they can either affect or be affected by the decisions taken in the business.
In conclusion, it is very important for every business owners and stockholders to consider the consequences of capital gains tax and income tax when selling an investment.
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Explain the advantages/disadvantages to each of the projects Bocavista
The advantages/disadvantages to each of the projects Bocavista are explained below.
Bocavista offers the apartments for rent in Altamonte Springs, FL, where convenience and luxury combine with an ideal location. Here, the project cannot be planned for all subjects and whole subject matter cannot be taught by this strategy.
A disadvantage of this is that the organization can have several projects, the resources may be doubled and thus there may be miscommunication when it comes to allocating such resources. Also, due to great amount of power of project manager, it can be an issue for members of the team.
Hence, this project method emphasizes the concept of learning by doing.
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Year 1 Dec. 16 Accepted a $10,900, 60-day, 7% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 Feb. 14 Received Todd’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $6,600, 7%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted a(n) $3,200, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. Apr. 16 Privet dishonored her note. May 31 Midnight Co. dishonored its note. Aug. 7 Accepted a(n) $7,350, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. Sep. 3 Accepted a(n) $2,470, 60-day, 11% note in granting Noah Carson a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Carson for the September 3 note. Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note. Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts. Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year 1. 1-b. Use the calculated value to prepare your journal entries for Year 1 transactions. 1-c. First, complete the table below to calculate the interest amounts. 1-d. Use those calculated values to prepare your journal entries for Year 2 transactions. 2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?
1- a. Completing the table below in order to calculate the interest amount on December 31, Year 1 is $36.
1-b. Using the calculated value in order to prepare the journal entries for Year 1 transactions is as follows.
Journal Entries:
To accrue interest revenue - December 31, Year 1.
1-c. Completing the table to calculate interest amount on December 31, Year 2 is $600.
1-d. By using the calculated values in order to prepare journal entries for Year 2 transactions is as follows.
Journal Entries:
Year 2
February 14
Debit Interest Receivable = $106
Credit Interest Revenue= $106 ($10,800 × 8% × 45 / 365)
Debit Cash = $10,942
Credit Interest Revenue = $142
Credit Note Receivable (Danny Todd) = $10,800
Thus, in order to record the receipt of Todd's payment of principal and interest on the note dated December 16.
March 2
Debit Note Receivable = $6,600
Credit Accounts Receivable = $6,600
To record the acceptance of an 7%, 90-day note, by granting a time extension on the past-due account receivable from Midnight
Company.
March 17 Debit Note Receivable (Ava Privet) = $3,200
Credit Accounts Receivable (Ava Privet) $3,200
To record the acceptance of a 30-day, 7% note, granting Ava Privet a time extension on her past-due account receivable.
April 16 - Debit Accounts Receivable (Ava Privet) = $3,200
Credit Note Receivable (Ava Privet) $3,200
Credit Interest Revenue $14
To record that Privet dishonored its note.
May 31 - Debit Accounts Receivable (Midnight Company) = $6,600
Credit Note Receivable (Midnight Company) = $6,100
Credit Interest Revenue = $120
By recording that the Midnight Company dishonored its note.
August 7 Debit Note Receivable (Mulan Company) = $7,350
Credit Accounts Receivable (Mulan Company) = $7,440
To record that the acceptance of a 90-day, 10% note, granting a time extension on past-due account receivable of Mulan Company.
September 3 - Debit Note Receivable (Noah Carson) = $2,470
Credit Accounts Receivable (Noah Carson) = $2,470
To record the acceptance of a 60-day, 10% note, granting Noah Carson a time extension on his past-due account receivable.
November 2 Debit Cash $2,135
Credit Note Receivable (Noah Carson) $2,100
Credit Interest Revenue = $35 ($2,100 × 10% × 60 / 365)
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