4. Use the incomplete stockholders' equity section of Box Company's balance sheet as of December 31, 2016, to answer the following question. Common stock, $7 par, 100,000 shares authorized Additional paid-in capital common Retained earnings Treasury stock (2,000 shares at cost) Total stockholders' equity How many shares of common stock are outstanding? a. 100,000 b. 98,000 c. 78,000 d. 68,000 $ 700,000 160,000 ? (16,000) 974,000
Q: Question 3 of 5. Julie anticipates receiving a $500 credit for other dependents on her 2021 tax…
A: A tax credit is a financial incentive or benefit provided by the government to people or…
Q: Loll Company uses the weighted-average method in its process costing system. Operating data for the…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in terms…
Q: Feeney Furniture prepared the following sales budget Cash Sales Month March April May June $20,000…
A: Cash received in the month is the sum total of cash sales in that month and cash collection from…
Q: The Halo Corporation has the following data for 2017: Selling price per unit $5 Variable costs per…
A: If in the firm's income stream there is fixed operating expenses the firm has operating leverage.…
Q: Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2024. Information for…
A: This method is used by retailers to estimate the value of their inventory for financial reporting…
Q: Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. 2018…
A: Pretax financial income or loss is the income earned or loss incurred by the taxpayer before making…
Q: Assume that actual overhead is $878,000 in a given year, the overhead rate is $13 per unit, 75,000…
A: Overhead refers to the indirect costs or expenses that are incurred to support the primary…
Q: For Margaret, one of the most exciting aspects of landing a full-time job was being able to buy a…
A: The costs which are changed or affected based on the decision of accepting or rejecting a proposal…
Q: Please help me with the functions for this ! Thank you! Jay Corporation has decided to prepare…
A: High Low Method - This method is used to segregate the variable and fixed cost. This method is…
Q: In 2020, Concord receives the raw materials and pays the required $1,700,000. The raw materials now…
A: Accounting is a process of maintaining business records that can be used in the future to analyze a…
Q: Consider the following financial information and answer the questions that follow: Sales Costs…
A: Since you have posted a question with multiple sub parts, we will be able to provide the solution…
Q: on January 14th Pasta House sold Martin Halter, the firms founder and sole owner 9,600 shares of its…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: The following data pertain to activity and costs for two months: October 5,000 $10,000 30,000 20,000…
A: "Activity level cost" typically refers to the costs associated with a specific level of activity or…
Q: Calculate the depreciation in dollar and percentage terms, the yearly depreciation in percentage…
A: Depreciation is the decrease in the value of the asset. The company provides depreciation to…
Q: Required information Skip to question [The following information applies to the questions…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Required Information [The following information applies to the questions displayed below.] On…
A: Retained earnings balance includes net income and the dividends are paid out of the retained…
Q: Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the…
A: Margin of safety represents how much a company's sales can drop before it reaches its break-even…
Q: January 1, 2020, Teal Company makes the two following acquisitions. 1. Purchases land having a fair…
A: Journal entry is the first step towards recording daily business transactions. These transactions…
Q: PROBLEM 5-12 Comprehensive Calcium prepares statements on the cash basis. The balance sheet on…
A: The accrual basis of accounting is an accounting method that recognizes revenues and expenses when…
Q: A1 D 3 B C E G Starr Ltd. had sales revenue of £540,000 in 2022. Other items recorded during the…
A: IntroductionIncome statement is a summary of income and expenses to ascertain net profit. The income…
Q: Which of the following are part of Kwan's "Simple & Effective way to End a Presentation?" □ Thank…
A: The part of Kwan's "Simple & Effective Way to End a Presentation":a. Thank Youb. Are there any…
Q: Pharoah Inc. had sales of $2,320,000 for the first quarter of 2022 (it sold 232,000 units). In…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Sandhill Company accumulates the following data concerning a mixed cost, using units produced as the…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: In June, one of the processing departments at Furbush Corporation had ending work in process…
A: The cost of units completed and transferred includes the cost of completed beginning WIP and current…
Q: Partners Charles and Dickens have capital balances in a partnership of $162000 and $240000,…
A: A partnership is an agreement between two or more partners where partners agree to work together for…
Q: Benitez Company currently outsources a relay switch that is a component in one of its products. The…
A: To calculate whether the cost of making the parts is higher than purchasing , relevant making cost…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The company produces financial information by making income statements and balance sheets. The…
Q: Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to travel…
A: Capital gains refer to the profits or earnings that an individual or entity realizes from the sale…
Q: What are 2 specific criteria essential to determine whether to recognize an intangible asset in a…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Novak is the primary provider of spirit apparel for many high schools. Management has been…
A: Variance analysis is the measurement of deviation between the actual performances and budgeted…
Q: The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable…
A: The current ratio is calculated as the current assets divided by the current liabilities. The debt…
Q: Expense Recognition (or Matching) Principle The following information describes transactions for…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: Required information [The following information applies to the questions displayed below.) The…
A: The cost of goods sold can be calculated by adding up the beginning balance of finished goods and…
Q: Lazare, who files as a head of household, has taxable income of $61,100 in 2023 Tax liability:…
A: Tax liability refers to the amount of taxes that an individual or entity owes to the government,…
Q: A company's December 31 work sheet for the current period appears below. Based on the information…
A: Income statement is one of the financial statements that shows the profitability, total revenue and…
Q: Required: Using the step-down method, allocate the service department costs to the operating…
A: In step down method cost of service department is allocated to production department on step basis.…
Q: At the beginning of Year 2, the Redd Company had the following balances in its accounts: $8,800…
A: Financial Statements are the Income Statements, Statement of Stockholder's Equity, Balance Sheet and…
Q: Magnus (Pty) Ltd purchased stock for R57 500 (including VAT). The company also incurred handling…
A: The cost price of a stock for tax purposes is typically the amount you paid to acquire the stock.…
Q: Required information [The following information applies to the questions displayed below.]…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $990.…
A: There are two types of expenditure (1) Revenue Expenditure - these are the expenditures which are…
Q: Exercise 5-3 (Algo) Cost per Equivalent Unit-Weighted-Average Method [LO 5-3] Superior Micro…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in terms…
Q: The controller of Sandhill Industries has collected the following monthly cost data for use in…
A: The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…
Q: Highlands Company uses the weighted-average method in its process costing system. It processes wood…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: ! Required information Greenwood Company manufactures two products-13,000 units of Product Y and…
A: Indirect costs incurred while producing goods or services. Overhead costs cannot be directly…
Q: Manhattan Company recorded an adjusting entry to accrue Interest owed of $550 as of December 31,…
A: Journal entries are the primary method for recording financial transactions in the books of…
Q: Tolkien Company started its operation on November 1 with no beginning inventories. It started two…
A: Job P has been soldJob Q has not been sold and remains in inventoryFrom the value of inventory of…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: A contribution margin income statement is an income statement in which all variable expenses are…
Q: Bauer Manufacturing Company reported the following data regarding a product it manufactures and…
A: Breakeven point is the point at which an entity is in a position of no profit and no loss. It is the…
Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…
A: Inventory turnover is a measure that evaluates the efficiency of the entity. It means how…
Q: On its December 31, 2023 statement of financial position, Mackeral Ltd. reported bonds payable of…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Please help me
Step by step
Solved in 3 steps
- 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.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.
- 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).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.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.
- 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.Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).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)