ACC – Problem 20.01A- WILSON CORPORATION and Problem 21.02A- BRUIN CORPORATION

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Problem 20.01A
WILSON CORPORATION
Year

Total
Dividends

Case A
All dividends to Preferred
All dividends to Preferred
10% to Preferred – Balance to Common
Case B
All dividends to Preferred
$1000 Arrearage to Preferred – balance to Preferred
$1000 Arrearage to Preferred – 10% preference to
Preferred – balance to Common
Computation of 2015 dividend:
Arrearage from 2013 & 2014
2015 Preferred dividend
Totals

Analyze: How much in total dividends should be paid to the stockholder for the fiscal year, 2015?

Preferred Stock
Per
Total
Share

Common Stock
Per
Total
Share

Given Data P20.01A
WILSON CORPORATION
Stock and Dividend Information
Common:
Shares
Par-value
Preferred
Shares
Par-value
Dividend rate
2013 Dividend
2014 Dividend
2015 Dividend

40,000
$10
2,000
$60
20.00%
$4,000
$6,000
$110,000

Student Name:
Class:
Problem 20.02A
HATTEN CORPORATION
Part I
1. All $13,500 to preferred for dividends in arrears
2011 Dividend
2012 Dividend
2013 Dividend
Total dividends to preferred stockholders
2. Dividend on each share of preferred stock
3. Dividend available to common stockholders
4. Dividend on each share of common stock
5. Total dividends due for 2011, 2012, and 2013
Less amount paid in 2013
Arrearage to be carried forward to future years.
Part II
1. 2011 Dividend
2012 Dividend
2013 Dividend
Total dividends to preferred stockholders
Dividend on each share of preferred stock
2. Total dividends paid
Dividend available to common stockholders
3. Dividend on each share of common stock
4. Total dividends due for 2011, 2012, and 2013
Less amount paid in 2013
Arrearage to be carried forward to future years.
Analyze: Amount due preferred stockholders at $50,000

Given Data P20.02A
HATTEN CORPORATION
Balance Sheet
Equity Section
December 31, 2013
Stockholders’ Equity
Preferred Stock (9% cumulative, $50 par value,
2,000 shares authorized) At Par Value
(1,500 shares issued)
Common Stock (no-par value, with stated value
of $25, 20,000 shares authorized)
At Stated Value (14,000 shares issued)

75,000

350,000

Part I – Additional Information
Years for which dividends have not been paid:
Dividend declared after completion of year 2013

2011
2012
$24,000

Part II – Additional Information
Dividend declared after completion of year 2013

$90,000

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