Reference no: EM132935845

Questions -

I. Norp Corp. had 40,000 share of $10 par value treasury shares. These shares were acquired at the cost of $800,000. During the current year 2014, the company reissued 30,000 shares at $25 per share. The company uses the cost method to account for treasury shares. Also during 2014, dividends on its 1,000 shares of 6% cumulative preference shares with $10 par value have not been declared or paid for 3 years. What amount of accumulated profits and losses should be restricted as a result of these items?

II. Norp Corp. paid dividends of $250,000 and $350,000 at the end of 2014 and 2015, respectively. The corporation has not paid any other dividends since its organization on 2 January 2013. The outstanding shares are 20,000, 12% preference shares, $100 par and 30,000 ordinary shares, $10 par. If preference share is non-cumulative, how much cash dividends would ordinary shares received in 2014? If preference share is cumulative, how much cash dividends would ordinary shares received in 2015?