1. What is the number of ordinary shares issued and outstanding? 2. What is the par value of each preferred share? 3. What is the market value of the share capital dividend distributable?
Q: Shown below are account balances found in the ledger of Emerald Green Corporation at the end of…
A: Par value of share: Par value of share is the price of shares which a company has issued to the…
Q: The shareholders' equity section of Sanchez Company on January 1, 2018 showed the following:…
A: Shareholders' equity is the section reported on the statement of financial position of a firm at the…
Q: Cyclone Corporation was authorized to issued 1, 000 shares of P100 par, 8% cumulative preference…
A: Ordinary shares, often referred to as common shares, seem to be company shares that provide…
Q: July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was…
A: Solution: Working: Date Particulars Ordinary Share (P) paid in capital of excess of par retained…
Q: ined earnings 5,700,000 Share capital transactions for the year 2021: March 10 - Reacquired 80,000…
A: When treasury shares are retired, then treasury shares are credited at their purchase cost and…
Q: Shown below and on the next page are account balances found in the ledger of Humility Corporation at…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On April 1, 2XX1, Globe Corporation, a newly formed company, had the following share capital issued…
A: A) Ordinary share capital:- The amount of Ordinary share capital for Globe Corporation =…
Q: The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019.…
A: Answer a)
Q: BFAR Corp. has 500,000 shares authorized and has the following information at the end of its first…
A: Shares are a type of securities, the holders of which get rights to participate in the profits of…
Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…
A: Shareholders equity is the amount that the owner has invested in the business including retained…
Q: The adjusted trial balance of ZZZ Corp. on December 31, 2010 includes the following account…
A: The Adjusted Trial Balance as on 31st December 2010 is given. Required How much is the total amount…
Q: Prepare the shareholders' equity section of BEST SCHOOL's statement of financial position as of…
A: Shareholders equity is the portion of capital being invested by the equity shareholders for the…
Q: On December 31, 2017, Zero Co. showed the following shareholders' equity: Share capital, P100 par,…
A: The dividend is declared from the retained earnings of the business. The dividend is paid only for…
Q: Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary…
A: The shares in treasury stock are not outstanding as these are not with the shareholders and company…
Q: At the beginning of current year, CFAS Company was organized and authorized to issue 100,000 shares…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: The following accounts are found in the trial balance of HUSKY Inc. at December 31, 2020.…
A: Legal capital of the business means total capital which is subscribed or issued to the public. Par…
Q: Shown below are account balances found in the ledger of Honesty Corporation at the end of year 2018:…
A: In the context of the given question, we are required to compute the average amount per share that…
Q: On December 1, DOS Corporation issued 1,000 shares of its par ordinary share capital and 2,000…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: On July 1, 2010, Bettina Company’s board of directors declared a 10% share dividend. The market…
A: The dividend is declared from the retained earnings of the business. The dividend can be paid in the…
Q: On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Elmer's Incorporated has the following stock outstanding on Dec. 31, 2013: Ordinary Shares, P100…
A: The company can issue shares by 3 ways. 1. Sale of Stock for Cash 2. Sale of Stock on Account 3.…
Q: amount credited to share premium from ordinary shares?
A: Total amount of issue P3,000,000 Less Ordinary shares at par value (25,000 shares @P50)…
Q: how much is the Legal Capital at the end of the year?
A: Legal capital refers to the amount of the corporation's equity that cannot be legally allowed to…
Q: Shown below are account balances found in the ledger of Emerald Green Corporation at the end of…
A: The question is related to number of preferences share and common share issued and subscribed.…
Q: During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for income through…
A: Retained earnings refers to that part of the accumulated net income of a corporation which is…
Q: Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: value,…
A: The treasury stock includes the shares that are repurchased from the shareholders.
Q: An entity had issued 950,000 P50-par ordinary shares. Of these, 32,000 shares were held as treasury…
A: The treasury stock reduces the number of outstanding shares but issued shares are not effected with…
Q: On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market…
A: No. of shares issued under share dividend = outstanding ordinary shares x dividend rate = 400,000 x…
Q: The shareholders' equity section of H Co. on December 31, 2018 showed the following: Ordinary share…
A: solution number of ordinary share for share dividends =(issued share – treasury share ) =(105000 –…
Q: How much is the total Share Capital in the following * On January 1, 2011, AM PNGET Co. received…
A: Total share capital is the price of subscribed share capital which has been received.
Q: Acer Inc. organized on June 1,2009, was authorized to issue shares as follows: 9%, 800,000, P100…
A: Equity: It is the amount shareholder invested in the company. This is the difference between total…
Q: On January 01, 2021, Acoba Corporation provided you the following information: Ordinary share…
A: Treasury shares means the share which has been buy back by the company . It will be shown as…
Q: At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par…
A: The retained earnings increases with revenue and decreases with losses during the period. The…
Q: The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account…
A: Total value of share capital held by a company includes both ordinary and preference share capital.
Q: The YZA Corporation has 100,000 ordinary shares authorized, par value P10. As of the end of…
A: The question is based on the concept of Financial Accounting. Earning per share is calculated by…
Q: The adjusted trial balance of ZZZ Corp. on December 31, 2014 includes the following account…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…
A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…
Q: n January 01, 2021, Pagaduan Corporation provided you the following information: Ordinary share…
A: Solution: Treasury shares are those shares which are purchased by a corporation of its own shares.…
Q: mium…
A: Transactions involving stock and retained earnings have an impact on a company's shareholders'…
Q: The accounts below appear in the December 31, 2020 trial balance of Moon Company: Authorized share…
A:
Q: On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par…
A: The retained earnings of the business includes the net income or loss earned, dividend declared,…
Q: Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary…
A: The treasury stock includes the shares that are repurchased from the shareholders of the business.
Q: he shareholders' equity section of Sanchez Company on January 1, 2018 showed the following:…
A: SOLUTION- NOTE = 1- RETIRING OF STOCK WILL NOT EFFECT THE TOTAL STOCKHOLDERS EQUITY AS IT WILL…
Q: Field Company's stockholders' equity account balances at December 31, 2006, were as follows: Common…
A: Total stockholders equity in the business means total amount attributable to the shareholders of the…
Q: On December 31, 2012, the stockholders' equity section of Arndt, Inc., was as follows: Common stock,…
A: Amount debited to retained earnings for stock dividend = fair value of the stock x no. of shares…
Q: Triad declared and paid a P25,000 cash dividend on December 15, 2008. If the company's dividends in…
A: Dividend paid = P25,000 Arrears = P6,000 Dividend of this year = P19,000
Q: Roma Company provided the following shareholders’ equity at year-end:Preference share capital, P100…
A:
Q: Way Company's adjusted trial balance at December 31, 2021 includes the following: Ordinary Share…
A: Total shareholders' equity in its December 31, 2021 = Ordinary Share Capital + Share Premium -…
Q: CFAS Company showed the following information from its shareholders' equity at year-end before the…
A: Accounting Entry to be made: General Journal Debit Credit Common Stock (5100 shares * P125)…
Q: .The accounts below appear in the December 31, 2020 trial balance of Spartans Corporation:…
A: Contributed Capital is the element of the balance sheet which is shown under the section of…
The adjusted
Dividends Payable P 40,000
Ordinary Share Capital (P5 par, 5,000 shares authorized) P 750,000
Ordinary Share Capital Subscribed (10,000 subscribed) P 25,000
Ordinary Share Premium P 50,000
10%
Preference Share Premium P 30,000
Retained Earnings Appropriated for Bond Retirement P 100,000
Retained Earnings - Unappropriated P 450,000
Ordinary Share Capital Dividends Distributable P 105,000
Paid-in, Capital from Share Capital Dividend P 63,000
SHOW SOLUTION PLEASE
1. What is the number of ordinary shares issued and outstanding?
2. What is the par value of each preferred share?
3. What is the market value of the share capital dividend distributable?
4. What is the total amount of retained earnings?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.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.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
- 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.Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.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. 190,000
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, 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 375. The bonds are classified as a held- to-maturitv 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 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued 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 (1). 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 had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)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.
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.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 375. The bonds are classified as a heldtomaturity 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 issued 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 (l). 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 had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.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.