Screenshot 2024-05-22 at 7
.png
keyboard_arrow_up
School
New Jersey Institute Of Technology *
*We aren’t endorsed by this school
Course
8803
Subject
Finance
Date
May 24, 2024
Type
png
Pages
1
Uploaded by SargentComputer6048
Question 23 2/2ptsil Question 24 2/2pts Consider the following situation then evaluate statements 1,2, and 3 as True or False. How does the purchase of treasury stock affect asset and equity accounts? Assume In October 2020 the board of directors of Blanker's Holdings declared an annual that the purchase is made with cash. dividend of $100,000. The dividend was paid in January 2021. Blanker's Holding fiscal year is the same as the calendar year. Statement 1. Blanker's Retained Earnings was * Assets decrease and equity decreases immediately reduced by $100,000 when the dividend was declared in October. Statement 2. In Blanker's October Income Statement a $100,000 dividend expense was recognized. Statement 3. Because the dividends were not paid out until January 2021, Blanker's FY2020 Statement of Cash Flows will not include the October 2020 dividend. Only Statement 1 is True Only Statement 2 is True Question 25 242EE Only Statement 3 is True (True/False). The declaration of a stock dividend does not impact retained earnings. All three Statements are True Correct! All three Statements are False — Statements 1 and 3 are True but Statement 2 is False Statements 2 and 3 are True but Statement 1 is False Question 26 2/2pts Statements 1 and 2 are True, But Statement 3 is False Consider both S - 1. Financial mustibei 3 dif a company owns more than 20% of another company. Statement 2. If a firm ¢ lid: financial the portion of company (or companies) not owned by the firm must be reported separately in the Stockholder's Equity section of the consolidated statements. * Only Statement 2 is True Downloaded by Shubh kh (shubhkhose.sk@gmail.com) Downloaded by Shubh kh (shubhkhose.sk@gmail.com)
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Question 46
During 2021, Stout Inc. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Stout,
converted into common shares of Stout
$ 540,000
Payment in 2021 of cash dividend declared in 2020 to
preferred shareholders
279,000
Payment for the early retirement of long-term bonds payable
(carrying amount $3,930,000)
3,975,000
Proceeds from the sale of treasury stock (on books at cost of $387,000)
450,000
The amount of net cash used in financing activities to appear in Stout's statement of cash flows for 2021 should be
$3,264,000.
$2,985,000.
$3,822,000.
$3,804,000.
arrow_forward
1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021?
2. How much is the ordinary share capital, December 31, 2021?
3. How much will is the total cash dividends paid during the year 2021?
4. Number of fractional warrants outstanding as of December 31, 2021
5. How much is the retained earnings appropriated for contingency loss?
arrow_forward
What is the company common stock’s “Book Value” per share?
arrow_forward
Please help me to solve this problem
arrow_forward
What is the company common stock’s “Book Value” per share ?
arrow_forward
What is your company’s common and preferred stock par or stated value? 2019
arrow_forward
What is your company’s common and preferred stock par or stated value? 2019
arrow_forward
solve please with steps computation explanation formula thanks
arrow_forward
Question 8
At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account
(stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No
dividends were paid during the first two years. During 2020 the company declared and paid a cash
dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
arrow_forward
Compute the following:
5. Assuming that on July 1, 2020, Kangaroo Company purchased its own share atP10.00. How much is the book value per share for the year 2020?6. Assuming that there is a cumulative and participating preference share, how thiswill affect the book value per share computation? Explain briefly.
arrow_forward
Albay Company had the following shareholders' equity on
Problem 23-16 (PHILCPA Adapted)
January 1, 2020:
Preference share capital, P100 par, 10% cumulative
Ordinary share capital, no par, P5 stated value
Share premium
Retained earnings
Treasury ordinary shares
2,000,000
5,150,000
3,500,000
4,000,000
400,000
On January 15, 2020, the entity formally retired all
the 30,000 treasury shares.
The treasury shares were originally issued at P10 per
share.
The entity owned 10,000 shares of Digos Company
purchased for P800,000. The Digos shares were
included in noncurrent equity securities.
On December 31, 2020, the entity declared a dividend
in kind of one share of Digos for every hundred
ordinary shares held by a shareholder.
The fair value of the Digos share is P90 on December
31, 2020. The dividend in kind was distributed on
March 15, 2021 when the fair value of Digos share is
P95.
On December 31, 2020, the entity declared the yearly
cash dividend on preference share, payable on January
15,…
arrow_forward
1. How many shares of its stock did 3M repurchase during fiscal 2019?
2. What journal entry did 3M make to record its stock repurchases in fiscal 2019?
3. What journal entry did 3M make to record stock options granted to employees in fiscal 2019?
arrow_forward
Problem 4
On December 31, 2019, Berto Mining Company declared a cash dividend of P800,000 to shareholders of
record on January 15, 2020 and payable on February 15, 2020.
The entity reported the following information on December 31, 2019:
Accumulated depletion
Share capital
Share premium
Retained earnings
200,000
1,000,000
300,000
600,000
What amount should be recognized as liquidating dividend? {
arrow_forward
Question 12 of 12
Question 12
At the 15 January 2019, the amount of Retained earnings reported by Moon Corporation is $2,700,000. During 2019, Moon Corporation issued common stocks of $980,000, declared
and paid cash dividends of $250,000, and declared share dividends of $585,000. The amount of net income of 2019 reported by Moon Corporation is $2,000,000 Moon Corporation was
required to make a correction of overstatement of depreciation expenses in prior years of $510,000 (net of tax)
Required:
How much was the retained earnings reported on 31st December, 2019? (Show your calculations),
For the toolbar, press ALT+F10 (PC) or ALTN10 (Mac)
BIVS Paragraph
Y Arial
4
10pt
V
描く届く AV 2-
IXOQS
FE EE X² X,
1 ΠΩΘΙ 田
田田 田出田四
BE (0)
+
4x
1
00
+
✔
hp
PO G
9
K
no
.
E
LI
arrow_forward
How many shares of common and preferred stock does your company have: Authorized? Issued? Outstanding?
arrow_forward
Question 2
For the year ended 30 June 2020, Murray Ltd had a net profit after tax of $3,300,000. Details of the
shares and other financial instruments outstanding are as follows:
On 1 July 2019 Murray Ltd had 600,000 fully paid ordinary shares.
• 300,000 fully paid ordinary shares were issued on 1 November 2019 at the prevailing market
price.
• 75,000 fully paid ordinary shares were bought back on 1 May 2020 at the prevailing market
price.
• 210,000 partly paid ordinary shares were issued on 1 May 2020 at a price of $6.00. The
shares were partly paid to $4.50 and carried the right to participate in dividends in
proportion to the amount paid as a fraction of the issue price.
• For the entire year, 3 million $3.00 preference shares were held which provided a dividend
at a rate of 5% per annum.
• The preference shares are convertible at a rate of 1 ordinary share for every 4 preference
shares.
There are options to purchase 60,000 ordinary shares at a price of $15.
For the year ended 30…
arrow_forward
Question 15 of 17
Marigold Corp. had the following information in its financial statements for the year ended 2020 and 2021:
Common cash dividends for the year
$19700
2021
Net income for the year ended 2021
127000
Market price of stock, 12/31/21
24
Common stockholders' equity, 12/31/20
2150000
Common stockholders' equity, 12/31/21
2740000
Outstanding shares, 12/31/21
147000
Preferred dividends for the year ended
29900
2021
What is the book value per share for Marigold Corp. for the year ended 2021?
O $18.64
O $14.63
O $18.44
O $18.31
arrow_forward
Problem 5: Color Company began business in
January of 2021. During the year, Color purchased
a portfolio of securities listed below. In its
December 31, 2021 balance sheet, Color
appropriately reported a P300,000 debit balance in
its "Unrealized gain/loss" account. The composition
of the securities did not change during the year
2022. Pertinent data are as follows:
Security
BE (FVPL)
BI (FVOCI)
KO (FVOCI)
Cost
P2,000,000
3,600,000
3,900,000
P9,500,000
Market Value, December 31, 2022
P2,750,000
3,250,000
4,000,000
P10,000,000
5.1 How much is the carrying value of
Investment on December 31, 2021?
5.2 How much is the unrealized gain or loss
that should presented in the Equity section of
the Balance Sheet on December 31, 2022?
arrow_forward
WHAT IS THE RESTATED BALANCE OF RETAINED EARNINGS?
arrow_forward
Current Attempt in Progress Sunland Company acquired 22000 shares of its own common stock at $21 per share on February 5, 2020, and sold 11000 of these shares at $28 per share on August 9, 2021. The fair value of Sunland's common stock was $25 per share at December 31, 2020, and $26 per share at December 31, 2021. The cost method is used to record treasury stock transactions.
What account(s) should Sunland credit in 2021 to record the sale of 11000 shares?
O Treasury Stock for $231000 and Retained Earnings for $77000.
O Treasury Stock for $275000 and Retained Earnings for $33000.
O Treasury Stock for $308000.
O Treasury Stock for $231000 and Paid-in Capital from Treasury Stock for $77000.
arrow_forward
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000
2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
arrow_forward
How much is the dividend income recognized for 2019?
56,000
99,000
109,000
Zero
None of the choices
arrow_forward
QUESTION 11
Dividends, reserves, retained earnings
During the year ended 30 June 2022, the directors of Jindabyne Ltd declared and paid an interim dividend of $18,000 out of retained earnings. At the end of the year the financial statements showed a profit (before tax) of $460,000 out of which the directors made the following
reserve transfers and tax liability.
Income tax expense
Reserves:
Plant replacement
General
Required
The beginning balance of retained earnings was $15,000.
Prepare journal entries relating to the above transactions.
b. Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2022.
Complete Part (a) below
IMPORTANT - please take note of the below instructions (the system will mark you as incorrect if you don't follow these instructions
Date
2022
• Amounts: PLEASE USE COMMAS IN YOUR AMOUNTS (1.e. use a comma as a thousands separator in your amounts)- write your number in the following format: 2,560.
(Do not write $2 560 or 2560 or $2560).…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Related Questions
- Question 46 During 2021, Stout Inc. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Stout, converted into common shares of Stout $ 540,000 Payment in 2021 of cash dividend declared in 2020 to preferred shareholders 279,000 Payment for the early retirement of long-term bonds payable (carrying amount $3,930,000) 3,975,000 Proceeds from the sale of treasury stock (on books at cost of $387,000) 450,000 The amount of net cash used in financing activities to appear in Stout's statement of cash flows for 2021 should be $3,264,000. $2,985,000. $3,822,000. $3,804,000.arrow_forward1. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 2. How much is the ordinary share capital, December 31, 2021? 3. How much will is the total cash dividends paid during the year 2021? 4. Number of fractional warrants outstanding as of December 31, 2021 5. How much is the retained earnings appropriated for contingency loss?arrow_forwardWhat is the company common stock’s “Book Value” per share?arrow_forward
- What is your company’s common and preferred stock par or stated value? 2019arrow_forwardsolve please with steps computation explanation formula thanksarrow_forwardQuestion 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.arrow_forward
- Compute the following: 5. Assuming that on July 1, 2020, Kangaroo Company purchased its own share atP10.00. How much is the book value per share for the year 2020?6. Assuming that there is a cumulative and participating preference share, how thiswill affect the book value per share computation? Explain briefly.arrow_forwardAlbay Company had the following shareholders' equity on Problem 23-16 (PHILCPA Adapted) January 1, 2020: Preference share capital, P100 par, 10% cumulative Ordinary share capital, no par, P5 stated value Share premium Retained earnings Treasury ordinary shares 2,000,000 5,150,000 3,500,000 4,000,000 400,000 On January 15, 2020, the entity formally retired all the 30,000 treasury shares. The treasury shares were originally issued at P10 per share. The entity owned 10,000 shares of Digos Company purchased for P800,000. The Digos shares were included in noncurrent equity securities. On December 31, 2020, the entity declared a dividend in kind of one share of Digos for every hundred ordinary shares held by a shareholder. The fair value of the Digos share is P90 on December 31, 2020. The dividend in kind was distributed on March 15, 2021 when the fair value of Digos share is P95. On December 31, 2020, the entity declared the yearly cash dividend on preference share, payable on January 15,…arrow_forward1. How many shares of its stock did 3M repurchase during fiscal 2019? 2. What journal entry did 3M make to record its stock repurchases in fiscal 2019? 3. What journal entry did 3M make to record stock options granted to employees in fiscal 2019?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning