9. Use the same information given in Problem 8. How much was the remaining cost of the treasury shares on December 31, 2012? O a. P51,000 O b. P96,000 c. P102,000
Q: Presented below is selected data from the financial statements of Trend, Inc. for the current and…
A: For the year 20x1 Current ratio Current assets / Current Liabilities $220,000 / $180,000 1.22 times…
Q: 1 Contributed K50 000 as initial capital and deposited this into the business bank account. 2…
A: The T-accounts are prepared to post the balances to specific accounts of the business.
Q: Define the following using your own words and give examples To credit Debit Credit
A: Introduction:- Debit column is on the left and the credit column is on the right. Every transaction…
Q: The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost…
A: Highest activity = 279,800 units Lowest activity = 163,000 units
Q: Nincada Inc Inc has provided the following data for the month of March. There were no beginning…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Duing July Year 6 W Mandrake. Bought further goods on credit for $ 700 Paid payable $ 400 by cheque…
A: Statement of financial means the balance sheet where all the real and personal account are show.…
Q: Required: 1. What are the alternatives for Basu Company? 2. Assume that none of the fixed cost…
A: Solution Dear student as per the Q&A guideline we are required to answer the first three…
Q: A retail company determines its selling price by marking up on variable costs 56.25%. In addition,…
A: The contribution margin represents the difference between the sales price and the variable cost of…
Q: Give two (2) examples of voidable contracts.
A: An avoidable contract is a legal agreement that can be canceled for a variety of reasons at the…
Q: On December 31, 2020, Pina Company acquired a computer from Plato Corporation by issuing a $615,000…
A: A record is frequently recorded in the major ledger; however, it may alternatively be entered in a…
Q: The following information are available for X Corp: (The company uses actual costing). What is the…
A: Beginning inventory for 2020 is equal to ending inventory of 2019. Sales = opening inventory +…
Q: In 2019, Rouchele Co. borrowed $200,000 on a 5% long-term note payable. In each of the following…
A: Long-term debt is a liability to be repaid after one accounting year. It is also called non-current…
Q: 2. Current ratio x 3. Debt-to-equity ratio x
A: Solution:- 2)Calculation of current ratio as follows under:- Current ratio =Current assets / Current…
Q: From the following particulars of Sriman Ltd., calculate the remuneration of Managing Director at 5%…
A: Companies Act describes about various rules for determining the remuneration payable to managing…
Q: 6 Power Manufacturing recorded operating data for its shoe division for the year. Sales Contribution…
A: Note: As per our guidelines, only the first question should be answered. 6. Controllable margin =…
Q: Question (1) Draw up W Pentecost's complete Statement of financial Position from the following…
A: Statement of financial position shows all assets, liabilities and equity balance of the business.…
Q: Decker Company sells a single product for $25. It had no beginning inventories. Operating data…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: A study on the effect of paternal involvement on academic performance. Descriptive research…
A: in question that have been different research provided among which one research applied to the given…
Q: Kate Collins has always been good at putting together rhymes for any occasion. Kate is a recent…
A: Journal Entries- Journal entries are the visual representation of business transactions. T-accounts,…
Q: Question 4 Good cost planning requires a basic understanding of how organizations account for…
A: Answer:- 4 Characterization of cost components:- 1. Materials:- The cost of the materials needed to…
Q: Let’s modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion…
A: A Break-even point is that point of sale where the revenue generated and cost incurred break even…
Q: The following ratios gauge a bank’s leverage EXCEPT* Bills Payable to Capital Accounts Capital…
A: Leverage ratio assess the ability of the company (here Bank) to meet its financial obligation. The…
Q: Instructions Osage Corporation issued 2,000 shares of stock. Prepare the entry for the issuance…
A: Hello Dear Student! Attached are the necessary entries needed by you. I have attached the entries…
Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…
A: Bond Valuation The issue of bond either in par value or in discount or in premium as well. Bond…
Q: enue = 9.5 M expense = 4M terest rate=1
A: DISCLAIMER “Since you have asked multiple question, we will solve the first threr subparts as per…
Q: Record the following transactions in the general journal.
A: RRR has started a merchandising business under the name of WEEN Trading. We are given transactions…
Q: decrease
A: Qualitative aspects relate to the use of physical and mathematical quantities which includes time,…
Q: Problems 1. During the most recent year, Pilkey Ltd had the following date associated with the pro…
A: Answer:- 1 Computation of unit product cost using absorption costing:- Absorption cost per unit = (…
Q: Question 3 L a) The Manchester based company. We Know Capital Limited (WIC), has been hired as…
A: Calculation of weighted avg cost of capital
Q: Why are audit objectives important in planning and performing an audit? Is it possible for audit…
A: Why are audit objectives important in planning and performing an audit? Audit objectives are the…
Q: 1. SaKanya Company provided the following information on December 31, 2020: Cash in Bank (net of…
A: Current liabilities are those liabilities which are being settled or paid in short period of time,…
Q: 12. Jane Company has granted 200 share appreciation rights to each of its 300 employees on January…
A: Share appreciation rights means where the company has granted a right to its employees to purchase…
Q: 1-Drop: Traditional versus Activity-Based Analysis Nutterco, Inc., produces two types of nut butter:…
A: Contribution margin takes into consideration variable expense only. Operating Income takes into…
Q: On 2 January 2019, Johnston Ltd purchased a machine with a list price of $234 300 and credit terms…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Dawn Company purchased a machine on January 1, 2018 for P3,000,000. At the date of acquisition, the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Accounts Receivable Accounts Payable Accumulated Depreciation Cost of Goods Sold Depreciation…
A: Solution Concept The operating income is the income that is generated from the operating activities…
Q: 1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that…
A: Solution:- 1) Explanation of one difference between manufacturing and merchandising business as…
Q: E11-6 Hodge Corporation issued 100,000 shares of $20 par value, cumulative, 6% pre- ferred stock on…
A: Preference shareholders are those shareholders who have preference in payment of capital and…
Q: Monochrome Fabric, Inc., is interested in using the reciprocal allocation method. The following data…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Q: Which of the following is not true in regard to selling fixed assets? a.If the selling price is more…
A: The journal entry for sale of fixed asset Cash A/C dr (sale amount) Loss on sale (if bookvalue >…
Q: On January 1, 2020, Miller Company purchased a machine for P2,750,000. The machine was depreciated…
A: Working: Total sum of 10 years = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55 years Sum of Remaining…
Q: . _______ An invoice in the amount of $200 carries cash terms of “2/10, net 30.” If the buyer takes…
A: Credit terms 2/10, net 30 means if payment is being made in 10 days, then 10% discount will be…
Q: Identify any two potential drawbacks that purchasing manager could face given their choice of…
A: The sourcing process encompasses all activities centered on identifying and evaluating possible…
Q: Which of the accounting controls ensure that a company's resources are used efficiently and…
A: Controls are the procedures which are designed and monitored by the management to ensure that the…
Q: oxanne Noskiye: Attempt 3 £ Questions 1 through 3 are based on the following facts: Freddie Handel…
A: Under Accrual basis of accounting , the expenses and Revenue are recorded when they are incurred and…
Q: 8-33 qug tham acquired the following new properties. mis oli to dºch au 01 00 10. MACRS, Section…
A: Depreciation is an value able part of Accounting.It gives a clear picture or in basic accounting…
Q: ke-or-Buy Decision, Alternatives, Relevant Costs ach year, Basu Company produces 24,000 units of a…
A: Solution Dear student as per the Q&A guideline we are required to answer the first three…
Q: Using the tabular analysis of business transactions, prepare, in good form, the income statement and…
A: Income statement is one of the financial statement which is prepared for review of profitability of…
Q: Shand Pipes offers three types of valves for sale to retailers: Ball Valves, Butterfly Valves and…
A: When a firm has different items and services, sales mix variance arises. As a result, the sales mix…
Q: Company contains (2) production centers (A, B), and (2) services centers (Maintenance and Fuel), and…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Step by step
Solved in 2 steps
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Contributed 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.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.
- 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.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.
- 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. 3,370,000Selected 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)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.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.