During 2017, Sanders Corporation prepared the following journal entry to record the declaration and payment of a cash dividend: The total par values of common and preferred stock outstanding were $55,000 and $40,000, respectively. No dividends were declared or paid during 2016.
There are 7,500 shares of common stock held in treasury.
The common stock has a par value of $2 per share.
Required:
A.If the preferred stock is noncumulative, calculate the current dividend rate on the preferred stock.
B.Calculate the number of common stock shares that received dividends.
C.Calculate the dividend paid per share of common stock.

Question

During 2017, Sanders Corporation prepared the following journal entry to record the declaration and payment of a cash dividend:  The total par values of common and preferred stock outstanding were $55,000 and $40,000, respectively. No dividends were declared or paid during 2016.
There are 7,500 shares of common stock held in treasury.
The common stock has a par value of $2 per share.
Required: 
A.If the preferred stock is noncumulative, calculate the current dividend rate on the preferred stock.
B.Calculate the number of common stock shares that received dividends.
C.Calculate the dividend paid per share of common stock.

Quizplus · Accepted Answer

The Answer of During 2017, Sanders Corporation prepared the following journal entry to record the declaration and payment of a cash dividend:  The total par values of common and preferred stock outstanding were $55,000 and $40,000, respectively. No dividends were declared or paid during 2016.
There are 7,500 shares of common stock held in treasury.
The common stock has a par value of $2 per share.
Required: 
A.If the preferred stock is noncumulative, calculate the current dividend rate on the preferred stock.
B.Calculate the number of common stock shares that received dividends.
C.Calculate the dividend paid per share of common stock.

During 2017, Sanders Corporation Prepared the Following Journal Entry to Record