Cough FX Limited reports the following shareholders' equity as of December 31,2017:
Preferred shares,$5.00,authorized 100,000 shares,
Common shares,authorized 200,000 shares,
Determine the following:
a.What was the average issue price per common share?
b.What was the average issue price per preferred share?
c.Assume the board of directors declares dividends totaling $1,850,000 to the shareholders.The preferred shares are cumulative,and no dividends were declared last year.Calculate the amount per share each class of shares will receive.
d.Assume the board of directors authorizes a 2-for-1 split on the common shares.Calculate the number of shares outstanding after the split and the book value of Both classes of shares.
e.Assume the board of directors authorizes a 15% stock dividend on the common shares after the stock split.The current selling price of the common shares is $9.Prepare the journal entry to distribute the stock dividend.

Question

Cough FX Limited reports the following shareholders' equity as of December 31,2017:
Preferred shares,$5.00,authorized 100,000 shares,
  Common shares,authorized 200,000 shares,
  Determine the following:
a.What was the average issue price per common share?
b.What was the average issue price per preferred share?
c.Assume the board of directors declares dividends totaling $1,850,000 to the shareholders.The preferred shares are cumulative,and no dividends were declared last year.Calculate the amount per share each class of shares will receive.
d.Assume the board of directors authorizes a 2-for-1 split on the common shares.Calculate the number of shares outstanding after the split and the book value of Both classes of shares.
e.Assume the board of directors authorizes a 15% stock dividend on the common shares after the stock split.The current selling price of the common shares is $9.Prepare the journal entry to distribute the stock dividend.

Quizplus · Accepted Answer

The Answer of Cough FX Limited reports the following shareholders' equity as of December 31,2017:
Preferred shares,$5.00,authorized 100,000 shares,
  Common shares,authorized 200,000 shares,
  Determine the following:
a.What was the average issue price per common share?
b.What was the average issue price per preferred share?
c.Assume the board of directors declares dividends totaling $1,850,000 to the shareholders.The preferred shares are cumulative,and no dividends were declared last year.Calculate the amount per share each class of shares will receive.
d.Assume the board of directors authorizes a 2-for-1 split on the common shares.Calculate the number of shares outstanding after the split and the book value of Both classes of shares.
e.Assume the board of directors authorizes a 15% stock dividend on the common shares after the stock split.The current selling price of the common shares is $9.Prepare the journal entry to distribute the stock dividend.

Cough FX Limited Reports the Following Shareholders' Equity as of December