rich land inc had a net income of 315 000 for the year ended june 30 2008 on july 15 541407

E8-5B. Analyze effects of dividends on financial statements. (LO 2)

Rich Land Inc. had a net income of $315,000 for the year ended June 30,2008. On July 15, 2008, the board of directors met and declared a dividend of $0.25 per share for each of the 500,000 outstanding shares of common stock. The board voted to make the actual distribution on September to all shareholders of record as of August 1. What is (a) the date of declaration, (b) the date of record, and (c) the date of payment? If Rich Land Inc. were to prepare a balance sheet on July 30, how would the dividends be reported (if at all X E8-68. Distribute dividend between preferred and common shareholders. (LO 2)

Law ever Electronics Inc. has 8,000 shares of $150 par, l27o cumulative preferred stock outstanding and 15,000 shares of $2 par value common stock outstanding. The company began operations on January 1, 2007. The cash dividends declared and paid during each of the first 3 years of Lawver’s operations are shown below. Calculate the amounts that went to the preferred shareholders and the common shareholders (SHs) each year