1. Prepare the journal entry to record Tamas Company's issuance of 6,100 shares of $100 par value, 9% cumulative preferred stock for $101 cash per share. 2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Tamas Company's issuance of 6,100 shares of $100 par value, 9% cumulative preferred stock for $101 cash per share.
Q: The following information is taken from the balance sheetand related disclosures of Maxwell,…
A: a) If the preference dividends are cumulative in nature, then these are the liability and if non…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: Beacon Corporation issued a 3 percent stock dividend on 37,000 shares of its $7 par common stock. At…
A: A stock dividend is the unrestricted distribution of a company's common stock to its shareholders. A…
Q: Please help
A: a) Journal Entries: Date Account Journal Debit $ Credit $ Jan 10 Cash 104,000 Common…
Q: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,…
A: A journal entry is prepared in order to record the financial transactions in the books of…
Q: A company has the following transactions during the year related to stockholders' equity. February 1…
A: Journal entry: It is defined as the recording of company's day to day transactions of monetary…
Q: Bernard Corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent…
A: Dividend on common stock = no. of shares x Dividend per share = 50,000 shares x $2.20 per share =…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: Stock dividend is a dividend distributed to equity shareholder in the form of shares, not in the…
Q: On January 1, Oriole Corporation had 83000 shares of $10 par value common stock outstanding. On June…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: Dividends are the part of profits that is distributed to the shareholders. It can be in form of cash…
Q: Ayayai Company has outstanding 2,700 shares of $100 par, 7% preferred stock and 14,100 shares of $10…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: 1. Prepare the journal entry to record Tamas Company's issuance of 5,900 shares of $100 par value,…
A: Cumulative preferred stock (likewise called cumulative preference shares) is a class of favored…
Q: A company has the following transactions during the year related to stockholders' equity. February 1…
A: The corporation has different options for collecting resources for the business. It includes the…
Q: Bentiey Corporation received cash from issuing 12,000 shares of common stock at par on January 1,…
A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…
Q: Journal Entry Worksheet: (please refer to the picture as well) 1, Record the issuance of 46,000…
A: No. of shares outstanding = Beginning shares outstanding + additional issue - treasury stock =…
Q: Italian Stallion has the following transactions during the year related to stockholders' equity. 1…
A: Total dividend declared = Dividend per share x (No. of common stock + No. of preferred stock) =…
Q: Dear Bartleby, Could you please provide some assistance on the listed question, thank you. Refer to…
A: Financial statements are the set of records of the financial transactions and position of a business…
Q: The total dividends to be given to preferred stock, if preferred stock is 5 points cumulative and…
A: Annual Dividend to Preferred shareholders = Preferred share capital x rate of dividend = P100000 x…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…
Q: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…
A: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: The answer is as fallows
Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…
A: The company can raise funds from different sources like by issuing common stock, issuing preferred…
Q: Required information [The following information applies to the questions displayed below.] Raphael…
A: The dividend is paid to shareholders from the retained earnings. At first, preference shareholders…
Q: The Snow Corporation issues 9,900 shares of $54 par value preferred stock for cash at $62 per share.…
A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: Stock dividend is kind of reward or return which is given by business entities to their shareholder…
Q: Thurman Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: 1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value,…
A: Solution... 1. Cash received on issuance = 5,000 shares * $102 per share = $510,000 Par value…
Q: Crane Corporation has 70,000 shares of common stock outstanding. It declares a $1 per share cash…
A:
Q: Nowell Inc. had the following stock issued and outstanding at January 1, Year 2. 1. 150,000 shares…
A: The dividend paid to the preference holders is the product of the par value of preference capital,…
Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…
A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…
Q: how will the total dividend be divided between the common and preferred stock? a) Preferred…
A: Dividend: Dividend can be defined as the portion of profit that is distributed to the shareholders…
Q: he shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common…
A: In This numerical has covered the concept of Stock Dividend
Q: Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred…
A: Preferred stock is another source of funds for an organization other than common stock. Preference…
Q: Italian Stallion has the following transactions during the year related to stockholders' equity.…
A: Total dividend declared = (No. of common stock + no. of preferred stock) x Dividend per share =…
Q: Tom Yuppy, a wealthy investor, paid $31,320 for 1,080 shares of $10 par common stock issued to him…
A: Calculate the value of land at the date of stock issue.
Q: Lenore, Inc. declared a cash dividend of $90,000 in 2021 when the following stocks were outstanding:…
A: Dividend paid to Common stockholder group = Total dividend paid - Dividend paid to Preferred…
Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section.…
A: Annual Dividend to Preferred shareholders = Total Par value preferred stock x rate of dividend =…
Q: 1. Prepare the journal entry to record Tamas Company’s issuance of 5,000 shares of $100 par value,…
A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…
Q: 1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value,…
A: Preferred Shares - Preferred Shares are the issued to the preference shareholders. They enjoy…
Q: A company had stock outstanding as follows during each of its first three years of operations: 3,000…
A: The dividend is paid to the stockholders as the return on the investment. It is paid out of the…
Q: How many shares of common stock were outstanding at the end of the period? How many shares of…
A: 1. When common stock is issued for cash, cash, and common stock increase. Cash XXXX…
Q: 1. Prepare the journal entry to record Tamas Company's issuance of 6,100 shares of $100 par value,…
A: Cumulative preferred stock (likewise called cumulative preference shares) is a class of favored…
Q: Sanders Corporation has the following shares outstanding: 6,000 shares of $50 par value, 6%…
A: Please find the answers to the above questions below:
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance…
A: Calculate number of shares in dividend: Number of share dividend = ($300,000 / $10)* 6% Number of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).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.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.
- Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Assume that Lily Corporation has outstanding 1,500 shares of 150 par callable preferred stock that were issued at 175 per share, and that no dividends are in arrears. If the call price is 185 per share, what journal entry will Lily make to record the recall of these shares?Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.