On January 1, Year 1, a Company Had the Following

question 118

Essay

On January 1, Year 1, a company had the following transactions:
- Issued 10,000 shares of $2.00 par common stock for $12.00 per share.
- Issued 3,000 shares of $50 par, 6% cumulative preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
The company had the following dividend information available:
Year 1 - No dividend paid
Year 2 - Paid a $2,000 total dividend Year 3 - Paid a $20,000 total dividend Year 4 - Paid a $25,000 total dividend
Using the following format, fill in the correct values for each year:

---

Definitions:

Relevant

Pertains to information or costs that are pertinent to a particular decision, differing under the alternatives being considered.

Financial Advantage

The benefit derived from making a financial decision that results in gains exceeding costs.

New Product

An item recently introduced to the market that has not previously been available for purchase by consumers.

Joint Process

A manufacturing operation that produces multiple products simultaneously from the same process or raw materials, often seen in industries like chemicals or agriculture.