ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The company has not paid any other dividends since its organization on January 1, 2019. the outstanding shares are 40,000, 12% preference shares, par P100 and 60,000 ordinary shares, par P100. If preference share are noncumulative and nonparticipating, preference and ordinary, respectively will receive in 2020:
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: The dividends are declared from the retained earnings of the business.
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: Depreciation expense is the portion of cost of the fixed assets to be written off periodically in…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: Retained earnings are the accumulated free reserves of the entity. Dividends paid are made from the…
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Preference shareholders receive dividends first on preference and then the remaining dividend will…
Q: Crane Company had 295000 shares of common stock issued and outstanding at December 31, 2020. During…
A: Earnings per common share means net income or earning attributable for each common shareholder.
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Given that, Dividend declared for the year 2019 = P2000000 Dividend declared for the year 2020 =…
Q: Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2…
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 2-for-1 basis. In its…
A: No. of shares outstanding after split off = No. of shares outstanding before split off x split off…
Q: Ivanhoe Corporation had 80,000 common shares outstanding on December 31, 2019. During 2020, the…
A: Event Dates Outstanding Shares Restatement Months Weighted shares (a) (b) (c) (a*b*c)…
Q: On December 31, 2021, EOS Co.'s shareholders' equity consisted of the following: 8%, cumulative…
A: Preference Share: - A share that entities the holder to a fixed dividend, whose payment takes…
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: What is the balance of the share premium account immediately after the retirement of the shares?
A: Given information is: The equity accounts of UBAS Co. on December 31, 2019 were as follows:…
Q: At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at…
A: The stockholders' equity refers to the amount that is attributable to the shareholders of the…
Q: XYZ Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…
A: Earnings per share: When the net income is divided by the number of outstanding shares, we get…
Q: 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s…
A: Explanation of Concept Dividend is the part of earning which is been distributed to the shareholder…
Q: apital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings…
A: Heaven Inc discovered late in 2021 that 2020 depreciation expense was overstated by 500,000.…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: No. of shares = Share capital / Par value per share = 5,000,000/100 = 50,000 shares
Q: Cefner Corporation paid dividends of P200,000 and P300,000 at the end of 2019 and 2020,…
A: Formula: Dividends to ordinary shareholders = Total dividends - Preferred dividends
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: ABC Company had 100,000 of P 15 par value ordinary shares on January 1,2019. During 2019, the…
A: The treasury share are the buy back shares of the company.
Q: ABC Corporation invested in one of DEF's ordinary shares that has a par value of P500 and a market…
A: The stock value can be computed by dividing the expected dividend of next year by the difference of…
Q: ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The…
A: Formula: Preferred dividend = Total Preference shares x PAR Value x Preferred rate.
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: The cumulative dividend is payable even if it is in arrears.
Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…
A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The JHONG Corporation had the following balances in its Shareholders’ Equity accounts as of December…
A: The treasury stock has debit balance in normal. It is recorded in balance sheet as deduction from…
Q: Gall Corporation paid dividends of P500,000 and P1,600,000 at the end of 2021 and 2022,…
A: Calculation of dividend payble to preference shareholders >> (50,000 *100*12%) = 600,000 But…
Q: The balance in the retained earnings account of Indigo Corporation was P450,000 at December 31,…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: At the beginning of 2021, Sunland Company had retained earnings of $409000. During the year Sunland…
A: Sunland company shall not recognize any gain or loss from stock transactions with its own…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: A cash flow statement is a statement that reports the net cash inflows or outflows into or from a…
Q: The JHONG Corporation had the following balances in its Shareholders' Equity accounts as of December…
A: The treasury shares include the own shares of company purchased from the shareholders of…
Q: he Gangnam Company began operations in January 2019 and reported the following results for each of…
A: calculation of book value of ordinary share are as follows
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Diluted Weighted Average Shares is the number of shares used to measure Diluted EPS. This is used as…
Q: cash dividends shall the ordinary shareholders
A: Cash dividends received by preference shareholders = Amount of outstanding preference shares * Rate…
Q: ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The…
A: Introduction: Dividends: Dividends are shareholders funds. Dividends are given to share holders of…
Q: a.)Pharoah Company’s net income for 2020 is $709,000, and 94,000 shares of common stock were issued…
A: A) 94,000 shares was outstanding for period 12 months Net Income for 2020 $709000 stock…
Q: Marigold Corp. had 307000 shares of common stock issued and outstanding at December 31, 2020. During…
A:
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Given that preference shares are cumulative in nature. So if the preference shares are cumulative in…
Q: At December 31, 2020 and 2019, Atsumu Corporation had 100,000 Ordinary shares and 10,000 cumulative…
A: Formula: Preferred dividend = Total preferred shares value x Preferred dividend rate.
Q: ABC Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…
A: Earnings per share (EPS) is the ratio of net income available for common shareholders and number of…
Q: ABC Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…
A: Investors will find out how much of a company's net income was allocated to each share of common…
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Share dilution occurs when a business issues new stock, reducing a current shareholder's ownership…
Q: In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the…
A: Buyback of shares - it means when the company buybacks its own holdings that was earlier subscribed…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Cumulative preference share can enjoy the right of any unpaid dividend on their share capital.…
Q: ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The…
A: The calculation of total par value of preference shares has been made as follows: Total par value of…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
ABC Company paid dividends of P400,000 and P600,000 at the end of 2020 and 2021, respectively. The company has not paid any other dividends since its organization on January 1, 2019. the outstanding shares are 40,000, 12% preference shares, par P100 and 60,000 ordinary shares, par P100.
If
Step by step
Solved in 2 steps
- 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.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.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. 6.73
- 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.Anoka 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?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?
- 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.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?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.
- 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.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.