Question 1

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}
\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \
\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \
\hline \text { Retained Earnings } & \$ 500,000 \
\hline
\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-What is the amount of dividend per share owing to preferred shareholders?

Accepted Answer

The answer of  Hex Corporation showed the following amounts...

Question 2

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}
\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \
\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \
\hline \text { Retained Earnings } & \$ 500,000 \
\hline
\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-Prepare the balance sheet (partial)at Dec 31,2021

Accepted Answer

The answer of Hex Corporation showed the following amounts in...

Question 3

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}
\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \
\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \
\hline \text { Retained Earnings } & \$ 500,000 \
\hline
\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-Prepare journal entries for 2021.Use an Income Summary account and Cash Dividends account as required

Accepted Answer

The answer of Hex Corporation showed the following amounts in...

Question 4

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}
\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \
\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \
\hline \text { Retained Earnings } & \$ 500,000 \
\hline
\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-Prepare the statement of changes in shareholders equity for the year ended Dec 31,2021

Accepted Answer

The answer of Hex Corporation showed the following amounts in...

Question 5

During 2020,Yee Corporation reported revenues of $327,000 and expenses of $130,000,and declared cash dividends of $65,000.Retained Earnings on January 1,2019 was $168,000.Prepare closing entries at December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Accepted Answer

The answer of During 2020,Yee Corporation reported revenues of $327,000...

Question 6

Wilcox Limited,since it was organized in January 2020,has had outstanding 1,200,$15,preferred shares,and 15,000 common shares.The corporation declared and paid dividends each year as shown below.Calculate the total dividends distributed to each class of shares under each of the assumptions given.

Accepted Answer

The answer of Wilcox Limited,since it was organized in January...

Question 7

The following information and transactions took place during 2020:
 $\begin{array}{|l|l|}
\hline \text { May-18 } & \begin{array}{l}
\text { Declared a } \$ 8 \text { per share cash dividend on } 20,000 \text { common shares issued and } \
\text { outstanding. }
\end{array} \
\hline \text { Jul-2 } & \text { Paid the cash dividends declared on May } 18 \text {. } \
\hline \text { Aug-31 } & \begin{array}{l}
\text { Preparing closing entries. The balance in the income summary is } \$ 45,000 \
\text { credit. }
\end{array} \
\hline
\end{array}$ Prepare journal entries for the above transactions.

Accepted Answer

The answer of The following information and transactions took place...

Question 8

Parker Corp has 1,000 $5,noncumulative,preferred shares outstanding,and $250,000 worth of common shares outstanding.During Parker's first year of operation,no dividends were paid,but during the second year,the company paid dividends of $45,000.How should the dividends be distributed?

Accepted Answer

The answer of Parker Corp has 1,000 $5,noncumulative,preferred shares outstanding,and...

Question 9

Hex Corporation showed the following amounts in the equity section of its balance sheet at January 1, 2021:
$\begin{array}{|l|r|}
\hline \text { Preferred Shares, } \$ 2 \text { cumulative (in arrears for 2020), 10,000 shares issued } & \$ 500,000 \
\hline \text { Common shares } 40,000 \text { shares issued } & \$ 800,000 \
\hline \text { Retained Earnings } & \$ 500,000 \
\hline
\end{array}$
In 2021: On Jan. 20, 2021, 10,000 common shares were issued for $150,000. On Nov. 1, 2021, Cash dividends of $90,000 were declared. Dividends will be paid on January 18, 2022. On Dec. 31, 2021 Hex reported revenues of $150,000 and expenses of $80,000 for the year.

-What is the average issue price per common share for 2021?

Accepted Answer

The answer of Hex Corporation showed the following amounts in...

Question 10

During 2020,Swille Corporation had Sales of $225,000 and Operating Expenses of $123,000 and declared cash dividends of $14,000.Retained Earnings on January 1,2020 was $110,000.Prepare closing entries on December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Accepted Answer

The answer of During 2020,Swille Corporation had Sales of $225,000...

Question 11

On July 31,Crispy Corp declared a dividend of $0.66 per common share outstanding to the shareholders of record on August 15.The dividend will be paid on August 25.Crispy Corp has unlimited shares authorized and 80,000 shares issued and outstanding.Prepare the journal entry to record the declaration of the dividend.

Accepted Answer

The answer of On July 31,Crispy Corp declared a dividend...

Quiz 4: Organization and Operation of Corporations

During 2020,Yee Corporation reported revenues of $327,000 and expenses of $130,000,and declared cash dividends of $65,000.Retained Earnings on January 1,2019 was $168,000.Prepare closing entries at December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Wilcox Limited,since it was organized in January 2020,has had outstanding 1,200,$15,preferred shares,and 15,000 common shares.The corporation declared and paid dividends each year as shown below.Calculate the total dividends distributed to each class of shares under each of the assumptions given.

Parker Corp has 1,000 $5,noncumulative,preferred shares outstanding,and $250,000 worth of common shares outstanding.During Parker's first year of operation,no dividends were paid,but during the second year,the company paid dividends of $45,000.How should the dividends be distributed?

During 2020,Swille Corporation had Sales of $225,000 and Operating Expenses of $123,000 and declared cash dividends of $14,000.Retained Earnings on January 1,2020 was $110,000.Prepare closing entries on December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.