Determine amount distributed to each class of shareholders

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Q1. Holden Ltd. has 75,000 $0.40 cumulative preferred shares that were issued for $375,900 and 200,000 common shares issued for $720,000. Holden did not declare any dividends last year and now declared a $108,000 cash dividend. A) Determine the amount distributed to each class of shareholders. B) Repeat assuming non-cumulative.

Q2. Heinfell Inc. reported sales of $850,000, cost of goods sold of $510,000, and other expenses totalled $180,000. If the tax rate is 26%, how much is the income tax expense for the year? What entry is needed if $40,000 of tax installments had been paid?

Reference no: EM133043089

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