Changing to a corporation.

Assignment Help Financial Accounting

Reference no: EM13925399

Jumpin-JehoSaphats is owned by Jessica Jean (JJ) Sam hats. Jessica wants to incorporate her business but is not sure of the differences between the current form of sole proprietorship and changing to a corporation. She has come to you to discuss the future of her company.

Over the past 6 years Jumpin-Jeho Sam hats has been expanding and raising additional capital. The company currently has 50,000 common shares issued and outstanding.

Four years ago the company issued 5,000 shares of 3% Cumulative Preferred Shares at $1000 par.

In year 1 $40,000 dividends were paid.

In year 2 the Board of Directors issued $75,000 dividends to be paid out.

Now in the fourth year, on March 6^th the Board of Directors declared a dividend of $3 per common share to be paid on May 15^th to owners of record on March 30^th. Given this information determine the amount of dividends that must be paid out by the company and record all of the required journal entries to carry out the Board's Directive.

Reference no: EM13925399

Questions Cloud

Retained earnings : Use the following information to prepare a classified balance sheet for Watkins Co. at the end of 2013

Create an entirely new product : Topic selection is an important first step for this project because it sets the stage for the entire plan. Here are some tips for topic selection:You can create an entirely new product, or add a unique new feature to an existing product (that you lau..

Find the yield-interest payments and bond price : The older bonds have a face value of $100,000 each and pay 18% in semi-annual instalments. They have an early call provision for a 5% premium over face value. Find the yield, interest payments, bond price, and all info related to profits and expenses

Cost of retained earnings : The CEO of the Geurts Corporation wants to know what its Cost of Retained Earnings is, when there is the following information:

Changing to a corporation. : umpin-JehoSaphats is owned by Jessica Jean (JJ) Sam hats. Jessica wants to incorporate her business but is not sure of the differences between the current form of sole proprietorship and changing to a corporation.

Practices to determine if planning was successful : Synthesize the Williams et al. (2006) online journal article. Do you agree that the Heart and Stroke Foundation of Ontario (HSFO) adequately addressed the important steps of a strategic plan and the planning process? Why or why not? In your paper,

Financial department of delphi consolidated industries : The financial department of Delphi Consolidated Industries (DCI) is just starting a 2-week retreat in the Canadian wilderness. The president of DCI has been approached by an investment banker who has acquired $1,000,000 in DCI bonds in one of his dea..

Calculate stream of expenses possible with assumed income : Using a hypothetical situation, make calculations to assist in retirement planning (e.g., determine stream of savings necessary for certain standard of retirement). Calculate the stream of expenses possible with the assumed income.

Proprietorship and changing to a corporation : Jumpin-JehoSaphats is owned by Jessica Jean (JJ) Sap hats. Jessica wants to incorporate her business but is not sure of the differences between the current form of sole proprietorship and changing to a corporation.

User Account

All Pages