ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary share at P15 per share. During the period January 1, 2019, through December 31, 2019, ABC reported net income of P900,000 and paid cash dividends of P460,000. On January 10, 2020,ABC purchased 12,000 shares of its ordinary share at P12 per share. On December 31, 2020, ABC sold 8,000 treasury shares at P8 per share. ABC uses the cost method of accounting for treasury shares. What is ABC's total stockholders' equity on December 31, 2020? To input answers, kindly follow the sample format below(no peso sign, with comma, no space): ex. 100,000
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Issue of bonus shares will not result in any cash flows into the organization, but the shareholder's…
Q: MM Co. had 100,000 shares of ordinary share issued and outstanding at January 1, 2021. During 2021,…
A: Shares are split by 2-for-1. Each share is converted into 2. Total shares outstanding before stock…
Q: Princess company began operations on January 1, 2020 by issuing at 15 per share one-half of the…
A: given Princess company began operations on January 1, 2020 by issuing at 15 per share one-half of…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: EPS means earnings available for each equity shareholder. Diluted EPS means when earnings of the…
Q: 1: Cyrell Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2019, the…
A: Introduction Retained earnings are the earnings that is left after dividend distribution to…
Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…
A: Shareholder means the owner of the company who is holding share in its name. Right share means where…
Q: On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase…
A: The company is required to have maximum shares in the market for the growth of the business and long…
Q: On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 317,000 shares of…
A: Calculation of W. Avg Number of shares (For Basic EPS) Calculation No of shares…
Q: On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
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: On December 31, 2020, Dow Steel Corporation had 700,000 shares of common stock and 310,000 shares of…
A: Introduction: Earnings per share denotes the fraction of a company's profits that is available to…
Q: AGUILA Company was organized on January 1, 2018. On that date, it issued 500,000 shares of its P10…
A: Stockholders Equity (often recognized as Stakeholders Equity) seems to be a balance-sheet statement…
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Share split in the business is one in which one share of the company is split or broken into…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Basic Earning Per share is Profit available for equity shareholders divided by Weighted no. of…
Q: On December 31, 2020, Dow Steel Corporation had 780,000 shares of common stock and 318,000 shares of…
A: The weighted average number of shares is the average sum of shares purchased during the period.
Q: Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference…
A: Contributed capital: It is the total value of shares issued during a period. The shares issued…
Q: retained earnings?
A: Definition: Retained Earnings: It is the amount that is obtained after distribution of dividend to…
Q: On January, 2019, Chicosci Corporation was incorporated with authorized Ordinary share capital of P…
A: Ordinary share capital refers to the total share outstanding at the par value per share.
Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…
A: In case of a company the shareholders are the owners of the company.
Q: Typecast, Inc. was incorporated on January 2, 2019 with the following authorized capitalization: •…
A: Authorized share capital means the amount which the company can legally issued. Issued share capital…
Q: Senden Company was organized on January 1, 2020 at which date it issued 300,000 ordinary shares of…
A: Treasury stock refers to the purchasing back of the shares of the company that are already issued.
Q: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: 1. Total No. of shares issued = 40,000 shares Value of Shares = 40,000 Shares x P100 = P4000,000…
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Balance in ordinary shares before split=Number of shares×Par value=400,000×P25=P 10,000,000
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Share premium from Jan. 12 transaction = (Issue value per share - par value per share) x no. of…
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: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Share premium is the amount received on issue of ordinary shares in excess of its par value.…
Q: Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value…
A: Ordinary shares: These are the shares issued by a company to an outsider. These shares entitle a…
Q: Harbottle Corporation was organized on January 3, 2021, with an authorized capital of 100,000 shares…
A: Loss on reissue of treasury shares = no. of treasury shares reissued x (Purchase price - reissue…
Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…
A: As per IFRS 9, Financial instruments, The financial assets measured at fair value through profit and…
Q: On September 1, 2019, Napakabasic Co. acquired 5,000 shares of the 20,000, P200 par, outstanding…
A: Under FVPL, dividend received will less from the cost of investments and subsequent reporting to be…
Q: On December 31, 2019, JnT Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…
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: On January 1, 2020, Alpha Aviation issues 105,000 shares of stock. Shortly thereafter, Delta Tech…
A: Dividend refers to the profit distribution to its shareholders and when the business earns the…
Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…
A: Gain = Sale value of shares sold - Purchase value of shares purchased
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…
Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of…
A: The shareholders' equity is calculated as sum of the issued and outstanding share capital, retained…
Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…
A: >Treasury Stocks are the shares that have been repurchased by the company from its stockholders…
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…
Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…
A: Solution: Amount should be credited to share capital on issuance = Nos of shares issued * Par value…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Stockholder's equity on 31 Dec 2020 Ordinary Share Capital Authorized 950,000 shares of…
Q: On December 31, 2020, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of…
A: Earnings per share = Net income available to Equity shareholders/weighted average number of shares
Q: TJH Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Tje shareholders' equity section represents the total equity belongings to shareholders.
Q: anuary 1, 2019, ABC Corporation had 125,000 shares of its $2 par value ordinary shares outstanding.…
A: Solution: Weighted-average number of shares outstanding are the number of outstanding share which…
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…
p1
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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. 3,370,000Hyde 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. 6.73Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
- 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.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?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.
- 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.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.Contributed 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.