Name _________________________________________________________
ACCT 223
1. Ellie Inc. had 6.5%, $100 par value cumulative preferred stock.
Dividends are paid quarterly, and there are 50,000 shares outstanding.
a. Calculate the dividend payout for the full year.
b. Calculate the dividend payout for each quarter.
c. If dividends were not paid out for the previous 2 years,
calculate the total dividend payout for this year (including the current year).
2. Audrey Company had $2.50 no par value cumulative preferred stock.
Dividends are paid semi-annually, and there are 100,000 shares outstanding.
a. Calculate the dividend payout for the full year.
b. Calculate the semi-annual dividend payout.
c. If dividends were not paid out for the previous 3 years,
calculate the total dividend payout for this year (including the current year).
3. Retained earnings as of 1/1/2019 were $69,000,000. Net income for the year
ending 12/31/2019 was $2,000,000. Equipment was purchased totaling $1,000,000,
bond payments during the year totaled $500,000, and interest expense totaled
$725,000 for the year. Dividends of $100,000 were declared and paid on common
stock, and dividends of $75,000 were declared and paid on preferred stock in 2019.
a. Calculate the ending retained earnings balance as of 12/31/2019.
4. Retained earnings as of 12/31/2019 were $15,000,000. Net income for the year
ending 12/31/2019 was $600,000. Bonds were issued for $2,000,000, Dividends of
$50,000 were paid, and Treasury Stock was issued for $80,000 during 2019.
a. Calculate the beginning retained earnings balance as of 1/1/2019.
5. Common stock, $2 par value, 1,000,000 shares issued, 500,000 shares
outstanding, 3,000,000 shares authorized.
a. Calculate the dollar amount that will be presented opposite this caption
on the balance sheet.
b. Calculate the total amount of a cash dividend of $0.50 per share.
c. Calculate the number of shares of treasury stock.
6. Common stock, $1 par value, 6,000,000 shares issued, 5,000,000 shares
outstanding, 8,000,000 shares authorized.
a. Calculate the dollar amount that will be presented opposite this caption
on the balance sheet.
b. Calculate the total amount of a cash dividend of $2.00 per share.
c. Calculate the number of shares of treasury stock.
7. Evan Scott owns 800 shares of $4 par value common stock of a company that
just made a 2-for-1 stock split.
a. How many shares of common stock would he own after the stock split?
b. What will be the new par value per share of stock?
c. What is the total par value before and after the stock split?
8. Sophia Christine own 500 shares of $15 par value common stock of a company that
just made a 3-for-1 stock split.
a. How many shares of common stock would you own after the stock split?
b. What will be the new par value per share of stock?
c. What is the total par value before and after the stock split?
9. Dax owned 5,000 shares of common stock. The company issued a 2% stock
dividend in lieu of a cash dividend.
a. How many shares of common stock would he own after the issuance?
10. Sawyer Co. issued (sold) 10,000 shares of $6 common stock for a market price of $8
cash per share on 12/31/19.
a. How much total cash was received by the sale of stock?
b. What was the total par value of the stock issuance?
c. What was the amount of the additional paid-in capital?
