| Year 6 | 240,000 | 60,000 | 0.30 | 180,000 | 0.30 Cash Dividends none Additional Questions none Stock Dividend none View Mode Selection X Pranks, Inc. Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends A cash distribution of earnings by a corporation to its shareholders. throughout Year 6, the current year. It is also declaring a stock dividend A distribution of shares of stock to its stockholders. to its stockholders The owners of a corporation. as the calendar year-end approaches. Youve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock Shares of ownership of a corporation. : common stock The stock outstanding when a corporation has issued only one class of stock. and cumulative preferred stock Stock that has a right to receive regular dividends that were not declared (paid) in prior years. . Youve been able to retrieve the following information so far: | Number of common shares authorized | 900,000 | | Number of common shares issued | 750,000 | | Par value A dollar amount assigned to each share of stock. of common shares | $20 | | Par value of cumulative preferred shares | $30 | | Additional Paid-in Capital - Common Stock | $7,000,000 | | Additional Paid-in Capital - Preferred Stock A class of stock with preferential rights over common stock. | $0 | | Total retained earnings before the stock dividend is declared | $33,500,000 | | | Total Cash | Preferred Dividends | Common Dividends | | Year | Dividends | Total | Per Share | Total | Per Share | | Year 1 | 40,000 | 40,000 | 0.20 | 0 | 0.00 | | Year 2 | 72,000 | 72,000 | 0.36 | 0 | 0.00 | | Year 3 | 122,000 | 68,000 | 0.34 | 54,000 | 0.09 | | Year 4 | 150,000 | 60,000 | 0.30 | 90,000 | 0.15 | | Year 5 | 168,000 | 60,000 | 0.30 | 108,000 | 0.18 | | You are in Column YearYear 6 | You are in Column Total Cash Dividends240,000 | You are in Column Preferred Dividends Total60,000 | You are in Column Preferred Dividends Per Share0.30 | You are in Column Common Dividends Total180,000 | You are in Column Common Dividends Per Share0.30 | none X Cash Dividends The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data youve collected regarding its outstanding stock The stock in the hands of stockholders. . Fill in the following answers. | How many shares of common stock are outstanding? | | | How many shares of preferred stock are outstanding? | | | What is the preferred dividend as a percent of par? The company declared a 3% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $24.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All before items are before the stock dividend was declared. All after items are after the stock dividend was declared and closing entries were recorded at the end of the year. | | | | Total paid-in capital before the stock dividend | | | Total retained earnings before the stock dividend | | | Total stockholders equity before the stock dividend | | | Total paid-in capital after the stock dividend | | | Total retained earnings after the stock dividend | | | Total stockholders equity after the stock dividend | | |
