Accounting advanced dividend liquidating

Amounts at which preferred stock is subject to redemption n.

Sharon owns 1,000 shares in the Tablet Universe Company and the company just announced that it is paying a liquidating dividend.

The total dividend is: = .00 x 200,000 shares = 0,000 The total dividend will be 0,000.

The company must use its retained earnings balance of 0,000 first and the remainder of the dividend, 0,000 (0,000 - 0,000), will come from the company's paid-up capital.

The amount of the dividend is usually stated as a percentage of the preferred stock’s “par value.” Furthermore, preferred stock is frequently cumulative preferred In the event of a corporate liquidation, to be “paid-off” before common shareholders.Sharon has only received regular dividends before and is not familiar with a liquidating dividend. Regular dividends are distributions of the company's profit that the company pays to its shareholders or owners.Regular dividends are paid out of a company's retained earnings or the earnings it has accumulated every year since it has been in operation.The following tables reveal general features that can be modified on a company by company basis.preemptive right is intended to allow a shareholder to avoid ownership dilution by being assured an opportunity to acquire a fair part of any corporate stock expansion.