1.On December 15, 2012, Pascal declared a cash dividend of $2.00 per share to stockholders of record on December 31. The dividend is payable on January 15, 2013. Pascal has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2.At December 31, bonds payable of $100,000,000 are outstanding. The bonds pay 10% interest every September 30 and mature in installments of $25,000,000 every September 30, beginning September 30, 2013.
3.At December 31, 2011, customer advances were $12,000,000. During 2012, Pascal collected $30,000,000 of customer advances, and advances of $25,000,000 were earned.
1. Well, it seems Pascal just couldn't resist spreading some holiday cheer in the form of cash dividends! With 1,000,000 shares of common stock (minus the 50,000 hiding in the treasury), each shareholder can expect a lovely $2.00 per share. Just in time to buy some post-Christmas discounted ugly sweaters, I suppose!
2. Ah, the joys of bonds payable! At December 31, there's a hefty sum of $100,000,000 still outstanding. These bonds have a 10% interest rate and are scheduled to mature in installments of $25,000,000 every September 30, starting from 2013. Looks like Pascal has some financial juggling to do, but hey, at least they gave themselves some time to figure it out!
3. Customer advances can sometimes feel like one big game of hide-and-seek, but not for Pascal! At December 31, 2011, they had $12,000,000 in customer advances. But in 2012, Pascal went on a collecting spree and managed to grab an impressive $30,000,000 in customer advances. To add to the excitement, $25,000,000 of those advances were actually earned. There's nothing quite like the thrill of finding lost money, especially when it's yours!
To answer your questions step-by-step:
1. To calculate the total cash dividend declared by Pascal on December 15, 2012, we need to determine the number of outstanding shares eligible for the dividend. We know that Pascal has issued 1,000,000 shares of common stock, and 50,000 shares are held in treasury. Therefore, the number of outstanding shares is 1,000,000 - 50,000 = 950,000 shares.
Next, multiply the number of outstanding shares by the cash dividend per share to get the total cash dividend amount. In this case, the cash dividend per share is $2.00. So, the total cash dividend declared by Pascal is 950,000 x $2.00 = $1,900,000.
2. To determine the total amount of bonds payable at December 31, 2012, we need to consider the principal amount outstanding and any interest payable. Given that the bonds payable outstanding is $100,000,000, we know that this amount represents the principal.
The bonds pay 10% interest every September 30, so we need to calculate the interest payable at December 31, 2012. As the interest payment date has not yet passed, there is no interest payable at this point. Thus, the total bonds payable at December 31, 2012, remains $100,000,000.
3. To calculate the customer advances at December 31, 2012, we need to consider the initial customer advances, advances collected during 2012, and advances earned during the year.
Starting with the initial customer advances of $12,000,000, add the advances collected during 2012. In this case, Pascal collected $30,000,000 in advances. Therefore, the total advances collected are $12,000,000 + $30,000,000 = $42,000,000.
Next, add the advances earned during the year. In this case, advances of $25,000,000 were earned. So, the total customer advances at December 31, 2012, are $42,000,000 + $25,000,000 = $67,000,000.
1. To find the total cash dividend declared by Pascal, we need to multiply the cash dividend per share by the number of shares outstanding. However, since the question states that there are 50,000 shares held in treasury, we need to exclude those shares from the calculation.
The number of shares outstanding = Total shares issued - Treasury shares
Number of shares outstanding = 1,000,000 - 50,000 = 950,000 shares
Total cash dividend = Cash dividend per share * Number of shares outstanding
Total cash dividend = $2.00/share * 950,000 shares = $1,900,000
Therefore, Pascal declared a total cash dividend of $1,900,000.
2. To determine the total amount of bonds payable at December 31, 2012, we need to calculate the remaining outstanding balance on the bonds.
Since the bonds mature in installments, we need to find the number of remaining installments. This can be calculated by comparing the current date (December 31, 2012) with the future maturity dates (September 30th of each year).
Number of remaining installments = Number of maturity dates that have not yet occurred
Number of remaining installments = Number of maturity dates - Number of maturity dates that have already occurred
Number of maturity dates = (Year of maturity - Year of issuance) + 1
Number of maturity dates = (2013 - 2013) + 1 = 1
Number of maturity dates that have already occurred = (Year of current date - Year of issuance) + 1
Number of maturity dates that have already occurred = (2012 - 2013) + 1 = 0
Number of remaining installments = 1 - 0 = 1 installment remaining
Total amount of bonds payable at December 31, 2012 = Remaining installment amount * Number of remaining installments
Total amount of bonds payable at December 31, 2012 = $25,000,000 * 1 = $25,000,000
Therefore, the total amount of bonds payable at December 31, 2012, is $25,000,000.
3. To find the customer advances at December 31, 2012, we need to consider the changes in customer advances during the year 2012.
The formula to calculate customer advances is:
Customer advances = Beginning customer advances + Advances collected - Advances earned
Beginning customer advances at December 31, 2011 = $12,000,000
Advances collected during 2012 = $30,000,000
Advances earned during 2012 = $25,000,000
Customer advances at December 31, 2012 = $12,000,000 + $30,000,000 - $25,000,000 = $17,000,000
Therefore, the customer advances at December 31, 2012, amount to $17,000,000.