【正文】 % ?,000 shares) 9,000 Preferred Stock Example Chapter 1023 Preferred stock (cumulative)Arrearage ($100 par ?% ?,000 shares) 15,000$ Current Yr. ($100 par ?% ?,000 shares) 15,000 30,000$ Preferred stock (noncumulative)Current Yr. ($50 par ?% ?,000 shares) 9,000 Common stockCurrent Yr. ($50,000 dividend $39,000 to preferred) 11,000 Total dividend declared 50,000$ Preferred Stock Example Chapter 1024 ? Nonparticipating Limits the yearly dividends to the specified rate plus any arrearage for cumulative stock. ? Partially participating Allows dividends above the specified rate on a pro rata basis with mon stock up to a limit specified in the corporate charter. Preferred Stock Participating Preferences Chapter 1025 ? Fully participating Allows dividends above the specified rate on a pro rata basis with mon stock without any limits. Preferred Stock Participating Preferences Chapter 1026 Kites, Inc. has the following stock outstanding: Common, $1 par value, 100,000 shares Preferred, 3%, $100 par value, noncumulative, 5,000 shares Dividends were paid every year except for the prior year. The preferred is partially participating up to 5%. In the current year the board of directors declares dividends of $60,000. How much in dividends does each class of stock receive? Preferred Stock Example Chapter 1027 Preferred Common TotalPreferred stock (noncumulative) ($100 par ?% ?,000 shares) 15,000$ 15,000$ Common stock (3% matching) ($1 par ?00,000 shares = $100,000 ?%) 3,000$ 18,000 Preferred Stock Example Chapter 1028 Preferred Common TotalPreferred stock (noncumulative) ($100 par ?% ?,000 shares) 15,000$ 15,000$ Common stock (3% matching) ($1 par ?00,000 shares = $100,000 ?%) 3,000$ 18,000 Preferred stock (participating 2%) ($100 par ?% ?,000 shares) 10,000 28,000 Common stock (2% matching) ($100,000 ?%) 2,000 30,000 Preferred Stock Example Chapter 1029 Preferred Common TotalPreferred stock (noncumulative) ($100 par ?% ?,000 shares) 15,000$ 15,000$ Common stock (3% matching) ($1 par ?00,000 shares = $100,000 ?%) 3,000$ 18,000 Preferred stock (participating 2%) ($100 par ?% ?,000 shares) 10,000 28,000 Common stock (2% matching) ($100,000 ?%) 2,000 30,000 Common stock (remainder) ($60,000 $30,000) 30,000 60,000 Total dividend declared 25,000$ 35,000$ Preferred Stock Example Chapter 1030 Par value stock: Cash (DEBIT) Common Stock, par value (CREDIT) Additional Paidin Capital, Common Stock (CREDIT) In this entry, Common Stock is credited for the par value of the stock issued. The excess over par is credited to the Contributed Capital in Excess of Par account. Issuing Stock for Cash Chapter 1031 Nopar stock: Cash (DEBIT) Common Stock (CREDIT) Stated value stock: Cash (DEBIT) Common Stock, stated value (CREDIT) Additional Paidin Capital, Common Stock (CREDIT) In this entry, Common Stock is credited for the stated value of the stock issued. The excess over stated value is credited to the Contributed Capital in Excess of Stated Value account. Issuing Stock for Cash Chapter 1032 A corporation enters into a subscription contract with several subscribers that calls for the purchase of 1,000 shares of $6 par mon stock at a price of $13 per share. A $3 per share down payment is required, with the remaining $10 due in one month. Cash 3,000 Subscription Receivable: Common Stock 10,000 Common Stock Subscribed 6,000 Additional Paidin Capital on Common Stock 7,000 $6 x 1,000 Stock Subscriptions Chapter 1033 The $10 per share final payment was received from subscribers to 950 of the 1,000 shares. Cash 9,500 Subscription Receivable: Common Stock 9,500 Common Stock Subscribed 5,700 Common Stock, $6 par 5,700 950 x $6 Stock Subscriptions Chapter 1034 1. Return to the subscriber the entire amount paid in. 2. Return to the subscriber the entire amount paid in, less any costs incurred to reissue the stock. 3. Issue to the subscriber a lesser number of shares based upon the total amount of payment received. 4. Require the forfeiture of all amounts paid in. When a default occurs, the accounting is determined by the relevant contract provisions, such as Stock Subscriptions Chapter 1035 The subscriber to the 50 remaining shares defaults on the contract. The contract requires the forfeiture of all amounts paid in. Common Stock Subscribed 300 Additional Paidin Capital on Common Stock 350 Subscription Receivable: Common Stock 500 Additional Paidin Capital from Subscription Default 150 50 X $7 50 X $6 50 X $10 Stock Subscriptions Chapter 1036 ? Use the current market value of the stock issued or the noncash consideration received, whichever is most reliably determinable. ? If market values cannot be determined, use appraised values. Issuing Stock for Noncash Assets Chapter 1037 Total proceeds must be allocated among the classes of stock issued: ? Proportional method Allocate the lumpsum received among the classes of stock issued based on their relative market values. ? Incremental method Allocate a portion of the lumpsum received to one security base