Author Question: On July 31, Ace Electronics paid a cash dividend of 0.50 per share to common shareholders. There ... (Read 146 times)

Jipu 123 · **on:** Jul 5, 2018

On July 31, Ace Electronics paid a cash dividend of 0.50 per share to common shareholders. There were 80,000 shares issued at the time. Ace held 5,000 shares of treasury stock. Ace also paid a dividend to preferred shareholders.

There were 1,000 shares of 6, 100 par preferred stock outstanding. What was the total dollar amount of the cash dividend?
What will be an ideal response?

Question 2

The bank reconciles its statement to the company's records.
a. True
b. False

Indicate whether the statement is true or false

wilsonbho · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

80,000 5,000 = 75,000 common shares outstanding
75,000 common shares x 0.50 = 37,500
100 par x .06 = 6 per share preferred dividend x 1,000 shares = 6,000
Total dividends: 37,500 + 6,000 = 43,500

Answer to Question 2

False