- Original Octave Inc Ooi Is A Widely Held Publicly Traded Company That Designs Equipment For Tuning Musical Instrumen 1 (49.42 KiB) Viewed 8 times
Original Octave Inc. (OOI) is a widely held, publicly traded
company that designs equipment for tuning musical instruments. Information about its shareholders' equity is as follows. Share capital Preferred shares, no par value, $8, cumulative, and participating (20,000 authorized; 1,010 issued and outstanding) Common shares, unlimited number authorized, 41,000 issued and outstanding Contributed capital, preferred share retirement Retained earnings Shareholders' equity 1. ORIGINAL OCTAVE INC. Shareholders' Equity December 31, 2019 2. 3. $101,000 512,500 The preferred share dividend was not paid in 2019. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2020 and are summarized in chronological order as follows. 19,310 Original Octave's net income for 2020 was $66,020. 632,810 278,530 $911,340 Exchanged 10,250 common shares for a prototype piano tuning equipment. The equipment was valued at $102,500 by an independent appraiser. On the transaction date, OOl's shares were actively trading at $10 per share. Purchased and retired 10,250 common shares at $12.50 per share. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend.
Prepare journal entries for each of the three transactions. (Round average price per share to O decimal places, e.g. 5,275 and percentages to 4 decimal places, e.g. 52.7546%. Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. 2. 3. (To record payment of dividend to preferred shareholders) (To record payment of dividend to common shareholders) Debit Credit
Calculate the
company's payout ratio for 2020. (Round answer to O decimal places, e.g. 52%.) Payout Ratio Calculate the
company's payout ratio for 2020, if the preferred share dividend was paid in 2019. (Round answer to O decimal places, e.g. 52%.) Payout Ratio eTextbook and Media % List of Accounts do %