Pr. 15-147Issuance of shares for cash, noncash consideration, and by subscription
DahomeyCorp.is authorized to issue an unlimited number of no par common shares. Prepare the journal entries for the following transactions:
1.Sold 600,000 shares for $10 cash each, which was the fair market value of the shares.
2.Issued 80,000 shares and paid $140,000 cash in total payment for a piece of land.The market value of the shares had not changed.
3.Received subscriptions for 40,000 shares at $18 per share; received60% of the subscription price in cash.
4.Received the balance of the subscriptions receivable.
Pr. 15-148Allocation of cash dividends
TogoInc. has the following shares outstanding:
40,000, $0.80, no par value preferred shares$400,000
60,000 no par value common shares$600,000
All shares were sold for $100 each.
No dividends have been declared since December 31, 2011. It is now December 31, 2017, and the board of directors wants to distribute $204,000 in dividends.
Calculate how much the preferred and common shareholders will receive under each of the following assumptions:
a)The preferred is noncumulative and non-participating.
b)The preferred is cumulative and non-participating.
c)The preferred is cumulative and fully participating.
d)The preferred is cumulative and participating to 12% total.