A.

Cooper 1
Aleshia Cooper
Tuesday, 28 January, 2014
Accounts 305 -01
Mr. Terrance Richards
Homework Questions: E 15-21 -15-22
Appendix 15-21

Preferred
Remainder ($90,000 $16,000)
Remainder ($90,000 $42,000)

Preferred stock

$74,000

$90,000

$42,000

$90,000

$48,000

(b) Preferred stock ($16,000 X 3)

(c)

Total

$16,000

(a) Preferred stock (2,000 X $100 X 8%)

Dividends in arrears (2 * $16,000)

Current dividend
Pro-rata share to common
(5,000 * $50 * 8%)
Balance dividend pro-rata

Common

Preferred
$32,000
16,000

9,778
$57,778

Preferred
$57,778

Amount available for participation

($90,000 $32,000 $16,000 $20,000)
Par value of stock
$200,000
Preferred (2,000 * $100)
$ 250,000
Common (5,000 * $50)
Rate of participation
Preferred($200,000/$450,000) * 22,000
Common($ 250,000/$450,000) * 22,000
Total

Common

Total
$32,000
16,000

$20,000
12,222
$32,222

20,000
22,000
$90,000

Common
$32,222

22,000

$450,000
$ 9,778
$12,222
$22,000

Total
$90,000

A. Cooper 2
Appendix 15-22
Preferred
Dividends in arrears
(7% * $10 X 20,000)
Current dividend
Preferred
Common (7% *$100 X 30,000)
Balance dividend pro-rata

Common

$14,000

$ 14,000

14,000
8,000
$36,000

$210,000
120,000
$330,000

Amount available for participation

($366,000 $14,000 $210,000)

(a)

224,000
128,000
$366,000
$

Preferred
$36,000

Preferred stock

128,000

Common
$330,000

Par value of stock

($200,000 + $3,000,000)
Rate of participation
Preferred($200,000/$3,200,000)* $128,000
Common($3,000,000/$3,200,000)* $128,000

Total
$366,000

$3,200,000
$ 8,000
120,000
$128,000

Current dividend (preferred)

(7% * $10 * 20,000)
A.P.I.C
($366,000 $14,000)
Total

$ 14,000
352,000
$366,000
Preferred
$14,000

(b) Preferred stock

Preferred
Current year
Preferred (7% * $10 X 20,000)
Common (7% * $3,000,000)
Additional common Stock (3%
$3,000,000)
Balance dividend pro-rata

Total

Common
$352,000

Common

Total

$210,000

$ 14,000
210,000

90,000
48,750
$348,750

90,000
52,000
$366,000

$14,000
*
3,250
$17,250

Total
$366,000

A. Cooper 3
Total
$ 52,000

Amount available for participation

($366,000 $14,000 $210,000 $90,000)

(c)

Preferred stock in excess of 10%

Par value of stock that is to participate

($200,000 + $3,000,000)
Rate of participation
$52,000 $3,200,000
Participating dividend
Preferred 1.625% X $200,000
Common 1.625% X $3,000,000
Total

Preferred
$17,250

Common
$348,750

Total
$366,000

Total
$3,200,000
1.625%
$ 3,250
48,750
$52,000