2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s 600,000 outstanding ordinary shares with a par value of P50 on the date of declaration was P80 per share. When the share price was P100 per share on September 1, 2021, the dividend was paid. As a result of the dividend declaration, how much is the increase in
Q: Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively,…
A: The Partnership is a relationship between two or more partners who have agreed to share the profit/…
Q: Mar, Tee, Nee, and Kho, sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21, respectively,…
A: The carrying value of the non-cash assets would be determined by the difference between total…
Q: Hi Tutor, Can you please write some comment for revised contribution margin I mean how it came and…
A: The difference between an actual measured outcome and a basis, such as a budgeted amount, is known…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting…
A: Note: In the special order question, firstly relevant cost for the special order is calculated. To…
Q: Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 24,100…
A: Let's understand some basics Factory overhead is the costs incurred during the manufacturing…
Q: The FernRod Motorcycle Company invested $150,000 at 4.5% compounded monthly to be used for the…
A: The value of the investment (made in the current period) after a certain period of time would be…
Q: What is the amount budgeted for purchase of CR01 in 2022?
A: For Universe Watches:— Sales Unit = 1,750 Units of Beginning Inventory of Finished Goods = 115 Units…
Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…
A: The bonds payable are issued at discount when market rate is higher than the coupon rate of bonds…
Q: are depreciation methods important in the business arena? Explain the differences among the…
A: Depreciation refers to the concept of determining the rate at which an asset is diminishing in its…
Q: rual profit
A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…
Q: You are considering developing 2 buildings (32 units each) on a 4-Acre lot (2-Acre waterfront,…
A:
Q: On January 1, 2021, Eno Company purchased 80% of Zosi Co's P10 par common stock for P2,437,500. On…
A: Non-controlling interest is recognized at fair value, or the value is proportionate to the fair…
Q: Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 269,610…
A: The materials or supplies that are directly related to a product and employed in its manufacturing…
Q: Current Liabilities Bank loans and notes payable Current portion of non-current debt Current portion…
A: Liabilities mean the company for that the company is liable to pay. Generally, there are two types…
Q: Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000…
A: Retained earnings is that amount of earnings that is accumulated and collected over the period of…
Q: Peter has total income of $54000. He has employment expenses of $18000, made a $5000 RRSP…
A: The taxable income is the income on which the tax is calculated. To calculate the taxable income of…
Q: Brier Company, manufacturer of car seat covers, provided the following standard costs for its…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: On Sep. 1, 2010 Bros Company purchased 10000 of Handle production Ins.. %9 Bonds lace value 100 $…
A: The bond investment is recognized in the books of accounts at fair value adjusted by the transaction…
Q: Love Company owns a building purchased on January 1, 2018 for P50 million. The building was used as…
A: The profit realized is calculated by deducting the carrying value from the fair value of the asset.…
Q: Wait time Process time Inspection time Move time Queue time Hours 19.5 2.3 1.3 3.2 10.3
A: Formula used: Delivery cycle time = Wait time + Through put time
Q: Arnel is a managing partner in a trading business. Part of his profit allocation is a bonus based on…
A: In Excess of P200,000 After Deducting Bonus means we have to calculate bonus on Percentage of Net…
Q: A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M.…
A: Given: - Chemical plant worth=110 million Estimated life=6 years Scrap value=10 million New plant…
Q: Unpaid staff salary was P74,540 on 31 December and P96,720 a year prior to it. P856,420 salary was…
A: >Salaries Expense account is an expense account, which is debited by the amount of salary expense…
Q: Tony Sanchez plans to retire and to withdraw 10 annual withdrawals that will start at P60,000 at the…
A: The initial deposit will be the sum of the present value of all the withdrawals in the future.
Q: On January 13, 2021, BlossomCorporation discovered that goods in transit from a supplier of $114,150…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Knowl Company plans to dispose of a group of net assets that form part of a disposal group. The net…
A: Impairment Loss It is important in the accounting to find out the impairment loss which are incurred…
Q: Partners Soul and Mate who have been dividing profits and losses in 2 points the ratio of 3:2.…
A: First, we will calculate the loss on realization Particular Amount Capital Soul P40000 Add:…
Q: Generally, the EEOC attempts to remedy an unlawful practice through mandatory arbitration. ⒸFalse…
A: Generally, the EEOC attempts to remedy an unlawful practice through conciliation
Q: Roots — Launch a new on-line customizable winter T-shirt to your summer customers.
A: A digital marketing agency is a business that offers a wide range of marketing services in one…
Q: What is the purpose of a bank confirmation and why are bank confirmations an important piece of…
A: The revenue cycle is defined as the accounting process by which a corporation keeps track of the…
Q: Sharif and Huda were partners sharing profit and loss in the ratio of 3:2. They decided to admit…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: culture of the organization can impact the effectiveness of different project man osoft and Boeing,…
A: Project structures refer to the framework of a company under which a set of employees continuously…
Q: joseph becomes bankrupt before the due date of his acceptance and David rece dividend of 40 per cent…
A:
Q: The undermentioned errors were discovered in the books of Marco after the Profit and Loss Account…
A: In the context of the given question, we are required to prepare journal entries to rectify their…
Q: Julie, Olga, and Yen were partners in JOY textile distribution business sharing profits and losses…
A:
Q: Betta Jets, a toy wholesaler, is hoping to expand into manufacturing its own products. The business…
A: Workings:- Schedule of Cash Collection:- 70% in the month following sale 30% in 2 month following…
Q: Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:…
A: The historical cost means the cost of the opening inventory on the other has the replacement cost…
Q: At the beginning of April, Warren Corporation's assets totaled $247,000 and liabilities totaled…
A: Lets understand the basics. As per balance sheet approach, total assets is always equal to total…
Q: Define transfer pricing and elaborate on FOUR (4) of its purposes. B. In deciding a transfer…
A: There are some transactions that take place within different divisions of an enterprise. Sometimes,…
Q: Cash Accounts Receivable Inventory Long-term Assets Accounts Payable Wages Payable Long-term…
A: The working capital is calculated as difference between current assets and current liabilities.
Q: Question Content Area Extreme Sports sells logo sports merchandise. The company is contemplating…
A: Decisions related to continuation and non-continuation of a segment are very vital for producing…
Q: Lorna, Aida, and Fe decided to liquidate their partnership on August 2pm 31, 2020. They have been…
A: Non cash assets means the assets other than cash and bank balances. Any amount received more or less…
Q: Nicolo manufacturing produced 10,000 Kitchen clocks in 2021 for P50 each and sold them to San Mig…
A: Consolidation In the consolidation parent company acquired the subsidiary company above the 50%…
Q: Account Balances Cash at Bank Accounts Receivable GST Collected Inventory as at 30 June, 2014 Motor…
A: The income statement is an essential part of the financial statements of the company. It is prepared…
Q: Machine Builders Incorporated adopted a standard cost system several years ago that it uses in…
A: Actual materials used in kilograms 22100 =24000-1900 Standard cost actual materials…
Q: Factory Overhead Rates, Entries, and Account Balance Eclipse Solar Company operates two factories.…
A: Overhead is the indirect expense incurred by the company in the production process of the company.
Q: ERCISE 6. Journal Entries - Capital share different from capital contrib June 1, 2022, Al and Ace…
A: Partnership is the relation between two or more partners who have agreed to share profit/loss of the…
Q: Manufacturing Company is trying to determine the cost of materials used to produce an A Toy. If…
A: The cost of a toy is determined by summing the product of the number of parts needed to make the toy…
Q: PB13. LO 4.3 Prepare adjusting journal entries, as needed, considering the account balances…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Selected accounts with a credit amount omitted are as follows Work in Process Apr. 1 Balance 6,600…
A: Goods finished = $307,900 WIP, April 30 = WIP, April 1 + DM + DL + Factory overhead - Goods finished
On July 1, 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s 600,000 outstanding ordinary shares with a par value of P50 on the date of declaration was P80 per share. When the share price was P100 per share on September 1, 2021, the dividend was paid.
As a result of the dividend declaration, how much is the increase in the current liability section of ABC’s financial statement?
Step by step
Solved in 2 steps
- On 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.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- 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. 3,370,000Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.
- 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.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.