. Akea Corp., reports this journal entry on May 15, 2020: Cash 75,000 Ordinary Share Capital 63,000 Paid in Capital in Excess of Par 12,000 The explanation reads. “Issued ordinary share capital for P50 per share”. What is the par value per share for this transaction?
Q: Bernabe Company reported the following equity accounts in January 1, 2020: Share Capital, P20 par…
A: Formula: Share premium = Beginning share premium - Shares reacquired value
Q: On January 1, 2021, Orange Inc. reported the following shareholders' equity: Preference share…
A: Following journal entry is required to be passed for depreciation expense: Date…
Q: The shareholders' equity section of De Guzman Company revealed the following information on Dc. 31,…
A: The share capital of a company may include various types of capital such as ordinary share capital,…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: The dividend is declared and paid to the shareholders from the retained earnings of the business.
Q: On the sale of treasury stock dated September 1, 2021, how much is the gain realized? On January 1,…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: Part of the Financial Position of Candy Inc. as of Dec. 31, 2019 shows the following: P 56,000…
A: Liquidation of the company is the winding process of the company whether by the mutual decision in…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: The treasury share are the shares that are repurchased by the company fron its own issued shares.
Q: Avalanche Inc. revealed the following information for the year ended December 31, 2021: Preference…
A: Legal capital is the par value of total outstanding shares . It is that amount of company capital…
Q: The ABC's statement of financial position shows total shareholders' equity of P3,150,000 as of…
A: Calculation of book value per share:::: Total shareholders Equity is::31,50,000P.. Shares…
Q: Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par…
A: Preference shares are those shares which have the preference in receiving the dividends and…
Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…
A: You have posted more than one unrelated questions, so as per our policy only first question is…
Q: What is the balance of the share premium account immediately after the retirement of the shares?
A: Given information is: The equity accounts of UBAS Co. on December 31, 2019 were as follows:…
Q: Presented below are balances taken from the records of Armor Corporation for 2020: 8% Preference…
A: Here provide the details of the amount of dividend which are paid to the ordinary shares after…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: Accumulated depreciation related to a fixed asset means the total amount of depreciation charged on…
Q: Cabuslay Company showed the following shareholders’ equity on December 31, 2021: Ordinary share…
A: Book Value is the value of cost of Asset/ Capital accounted for in the financial statements or books…
Q: The equity section of the Georgie Inc. showed the following data on December 31, 2019: Share…
A: Journal entries: These are the entries prepared to record the business transactions in the books of…
Q: Affleck Company has the following types of outstanding shares at December 31, 2020: ·…
A: Dividend on 12% Preference Share = P4,000,000 x 12% = P480,000 Dividend on 10% Preference Share =…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Shares are used to divide the capital of the company into small parts, so that it is will be…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares,…
A: Formula: Total dividends = Preferred dividends + Ordinary dividends
Q: On July 1, 2021, Soloc Company has 200,000 share of P10 par ordinary share outstanding and the…
A: Reverse Split effect is a measure taken by companies to consolidate it’s shares to fewer shares and…
Q: Hoseok Corporation has the following data on stock issued and outstanding at December 31, 2020: >10%…
A: Annual Dividend to Preferred shareholders = Preference Share Capital x rate of dividend = P400,000 x…
Q: Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par…
A: The book value of a share in the value that a shareholder will receive if the company gets…
Q: . During 2021, CAPTAIN AMERICA Company had two classes of shares issued ind outstanding for the…
A: Calculation of Basic Earnings per share Basic Earnings per share = Earnings available for Common…
Q: Phoebe Company presented the following entries in its "Shareholders' Equity" account for the year…
A: Shareholders equity balance comprises of common stock and retained earnings and treasury stock.…
Q: Earnhart Corporation has outstanding 3,000,000 shares of common stock with a par value of $10 each.…
A: a. Prepare the journal entry to record the declaration and payment of the cash dividend.
Q: For the year 2019, a business reports $450,000 increase in Share capital - Ordinary, $5 par value,…
A: Given that, increase in share capital = $450000 Increase in share premium = $550000 shares issued in…
Q: or numbers 1 to 11, identify how much to add or deduct from the Investment in Associate account of…
A: Step 1 As per US GAAP, in consolidated financial statements, we applied equity method to account the…
Q: Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par…
A: The book value per ordinary share is calculated by dividing the equity available to shareholders by…
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: The cumulative dividend is payable even if it is in arrears.
Q: What should be reported as total shareholders’ equity on December 31, 2020?
A: Total Shareholders' equity computation includes: a) Outstanding shares b) additional paid up…
Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…
A:
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Treasury Stock The purpose of issue of treasury stock which describes as the repurchase of own stock…
Q: At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value…
A: Share Premium: Share premium is the credited difference in price between the par value, or face…
Q: During 2020, Empresas ABC issued 4,000 preferred shares with a par value of $ 10 to $ 11 each. Each…
A: Compute total number of common shares converted from preferred share options as shown below:
Q: On December 31, 2019 and 2020, Carr Company had outstanding 40,000 preference shares with P100 par…
A: Share Capital:- Share capital is considered as the money which a firm raises from selling ordinary…
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par,…
A: Share premium: Shares issued more than PAR value called Share premium. Share premium = Issued Price…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: Cash sale of additional ordinary shares means cash will be received for the sale of additional…
Q: On June 30, 2020, when JDE Co's share was selling at P 65 per share, its capital accounts were as…
A: Working note: Computation of share dividend: Share dividend=Share capital×Rate of…
Q: ABC Corporation has outstanding 10,000 shares of 10% Preference Share Capital with a par value of…
A: Given that, 10% preference shares capital = 10,000 shares at par value of P100 Ordinary share…
Q: The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital…
A: A stock dividend is considered a small stock dividend if the number of shares being issued is less…
Q: The capital accounts of ABC Company as of yearend 2021 are as follows: Ordinary Share Capital (P10…
A: Total market value of Ordinary Share Capital = Ordinary Share Capital + Share Premium = 500,000 +…
Q: If Kiner Company issues 1,000 shares of P5 par value common stock for P7o,000, the account Common…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: no. of shares issued for this transaction?
A: Number of shares issued = Cash received from issue of shares/Price per share
Q: Viel Corporation’s outstanding shares at December 15, 2020, consisted of the following: • 200,000…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: On January 1, 2020, Arnold Inc. has the following account balances: · Share capital, P10…
A: Treasury shares are those shares which are repurchased or reacquired by the business from its…
Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…
A: The basic earnings per share is calculated as net income available to common shareholders divided by…
2. Akea Corp., reports this
Cash 75,000
Ordinary Share Capital 63,000
Paid in Capital in Excess of Par 12,000
The explanation reads. “Issued ordinary share capital for P50 per share”.
What is the par value per share for this transaction?
Step by step
Solved in 2 steps
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be ________. A. $11,985 B. $12,000 C. $15 D. $10,150Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.