French Essay

PUTATION OF DIVIDENDS, COMMON AND PREFERRED
PRACTICE 13–1
(1) Noncumulative
2010: Amount Comments(No dividends in arrears; noncumulative)
Preferred shareholders $45,000
(10,000 shares × 0.06 × $100 = $60,000)
Common shareholders 0 No remainder $45,000
2011: Amount Comments (No dividends in arrears; noncumulative)
Preferred shareholders $ 60,000
Common shareholders 40,000 $100,000
(2) Cumulative
2010: Amount Comments ($15,000 dividends in arrears)

Preferred shareholders $45,000 (10,000 shares × 0.06 × $100 = $60,000)
Common shareholders 0 No remainder $45,000
2011: Amount Comments
Preferred shareholders $ 75,000
$15,000 in arrears + $60,000
Common shareholders 25,000 $100,000
PRACTICE 13–2 ISSUANCE OF COMMON STOCK
Cash (10,000 shares × $40)................................................. 400,000
Common Stock, $1 par (10,000 shares × $1)............... 10,000
Paid-In Capital in Excess of Par................................... 390,000
PRACTICE 13–7 ACCOUNTING FOR STOCK WARRANTS
Cash (20,000 units × $55).................................................... 1,100,000
Preferred Stock, $50 par (20,000 shares × $50)........... 1,000,000
Paid-In Capital in Excess of Par⎯Preferred................ 40,000
Common Stock Warrants (20,000 warrants × $3)........ 60,000
Paid-In Capital in Excess of Par—Preferred =