5 The Growing Company has provided the following information about their Common Stock as of October 21, 2018 Authorized shares 5,000,000 Issued shares 3,700,000 Treasury stock shares 245,000 Board of Director declared a dividend of $.35 per outstanding shares of Common stock Required Prepare the journal entry when the dividends were declared.
Q: Required information [The following information applies to the questions displayed below.] Shown…
A: Retained earnings of the business means accumulated earnings of the business over the period of…
Q: 6. On January 1, Year 1, a company had the following transactions: Issued 10,000 shares of $2 par…
A: A dividend is the transfer of a portion of a company's earnings to a certain group of shareholders,…
Q: Acorporation had stockholders' equity on January 1 as follows: Common Stock, $10 par value,…
A: Securities Premium Reserve is an account that represents the paid in capital in excess of par. It is…
Q: A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.…
A: The stock dividend is a method of capitalizing on retained earnings. stock dividend is issued to the…
Q: 21) Below note the Shareholders' Equity account of Goodman Company at the beginning of March 5:…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Required information [The following information applies to the questions displayed below.] On June…
A: Answer:- Stock split definition:- When a corporation splits its stock, it raises the number of…
Q: A company's board of directors votes to declare a cash dividend of $1.55 per share of common stock.…
A: The common shares of a company that are owned by its shareholders, who include retail investors,…
Q: The answer is 20,000 please walk me thru step by step of how to achieve this answer.
A: Preferred shareholders have preferential right to get dividend before common stockholders. Being…
Q: A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.…
A: Stock dividend is dividend payment made to shareholders by company in the mode of shares rather than…
Q: Reporting Stockholders' Equity Using the following accounts and balances, prepare the Stockholders'…
A: The question is based on the concept of Financial Accounting.
Q: 8) The following information is available for ABC Corporation: January 1, 2021 Shares…
A: Earnings per share is a financial measure to know the profitability of the company. Formulae for…
Q: P13-42A Journalizing dividends and treasury stock transactions and preparing the stockholders'…
A: The Journal is the preliminary record for any transaction in book keeping. Majority of other books…
Q: The following accounts appear in the records of McAdam Inc. at December 31, 2018. Prepare the…
A: Stockholders Equity = Total assets - Total liabilities
Q: Required information [The following information applies to the questions displayed below.] Shown…
A: Retained Earnings means accumulated earnings of the business, which it has earned over the period of…
Q: E Calculator A corporation issues 4,500 shares of common stock for $144,000. The stock has a stated…
A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…
Q: A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock.…
A: Number of shares=Issued shares-Treasury stock=18,000-5,000=13,000
Q: ! Required information [The following information applies to the questions displayed below.] On June…
A: Concept:
Q: Required information [The following information applies to the questions displayed below.] Raphael…
A: Please see the explanation. Thank you
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31 of the…
A: Journal entries are the entries that are recorded in the books of accounts for the first time…
Q: A company with 80,474 authorized shares of $8 par common stock issued 30,606 shares at $12 per…
A: Formulas: Stock dividend = Number of shares issued * Par value * Stock dividend rate
Q: 3. Bungy Dive Inc. has 80,000 shares of $35 par common stock outstanding. On June 8, Bungy declared…
A: Journal entry: It is a primary stage of recording transactions that consist of debit or credit. The…
Q: Destiny-19 Corporation had the following stockholders' equity accounts on January 1, 2022: Common…
A: The treasury stock includes the own shares of the company that are repurchased from the…
Q: 10. Raphael Corporation’s balance sheet shows the following stockholders’ equity section.…
A: Introduction: A shareholder is a person, company, or institution that holds at least one share of…
Q: Using the following accounts and balances prepare the stockholders equity section of the balance…
A: Stockholder equity section of the balance sheet represents the amount invested by the owners. This…
Q: Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the…
A: Payment of dividend out of profits indicate that the dividends are distributed out of retained…
Q: The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: 4 Senior Life Co. is an HMO for businesses in the Portland area. The following account balances…
A: There are 2 types of stock dividends, namely small stock dividend and large stock dividend. Small…
Q: 27. Field Company's stockholders' equity account balances at December 31, 2006, were as follows:…
A: Total stockholders equity means total amount or value attributable to the shareholders of the…
Q: What is the weighted average ordinary shares in computing for EPS?
A: The weighted average number of shares outstanding is the number of shares in the company after…
Q: J Corp Stockholders' Equity section from their 12/31 Balance Sheet is given: Paid in Capital Common…
A: Stockholders equity: Stockholders equity refers to the shareholder's equity that is the net assets…
Q: 12. Raphael Corporation’s balance sheet shows the following stockholders’ equity section.…
A: Introduction: The amount of assets remaining after all liabilities have been paid is referred to as…
Q: A corporation issues 4,500 shares of common stock for $144,000. The stock has a stated value of $19…
A: Definition:
Hello, I need formulas explaining the answers, thank you.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 200,000 shares of common stock at 12, receiving cash. b. Issued 8,000 shares of preferred 2% stock at 115. c. Purchased 175,000 shares of treasury common for 10 per share. d. Sold 110,000 shares of treasury common for 14 per share. e. Sold 30,000 shares of treasury common for 8 per share. f. Declared cash dividends of 1.25 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
- 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).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.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?
- 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.
- 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 stock dividend distribution on July 31?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.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.