Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share capital, €10 par value €500,000 Share premium – Preference €280,000 Ordinary share capital, €25 stated value €1,500,000 Share premium - Ordinary €900,000 Treasury Shares (10,000 ordinary shares) €150,000 Retained earnings €1,235,000 Show solution and explanation in determining how much is the cost per share of the treasury shares
Q: 10. An example of a period cost is O advertising expense. O indirect materials. O depreciation on fa...
A: Introduction:- All costs are not related to production of a product is treated as period costs.
Q: Which of the following is an example of an indirect cost? Multiple Choice Cost of labor Cost of down...
A: Indirect Cost are expenses other than direct expenses are known as indirect expenses. These cannot ...
Q: What are retained earnings?
A: Solution Capital means the asset and cash in a business .capital may be either be cash , machinery ,...
Q: nanagement of these plural legitimate perspectives in Post-Norm ous bargain within the stake holders...
A: I have given answer in the brief explanation.
Q: What is non-posted interest on statements? Please explain.
A: The answer is stated below:
Q: Heiman, a VAT registered taxpayer, had the following data in 2022: Deferred input taxes, December 2...
A:
Q: Consider the following events: 25,000 shares of preferred stock, cumulative, 5%, $40 par was issued ...
A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises ...
Q: ABC Corp has P100,000 collectibles from Mr. Naki Utang who became insolvent with P60,000 assets and ...
A: 1. Income tax liability = 20% of P 200,000 = P 40,000 2. Income Tax liability will be paid on prior...
Q: Elyssa’s Elegant Eveningwear (EEE) needs to ship fi nishedgoods from its manufacturing facility to i...
A: Transit time is the amount of time needed for transporting of inventory from one place to another pl...
Q: Required: Prepare Fidel Trading’s adjusted cash book for November 30th Prepare the necessary journa...
A: Please see the attached solution.
Q: Direct Labor Variances The following data relate to labor cost for production of 5,800 cellular tel...
A: Direct Labor Rate Varaince = Actual Hours * (Actual rate per hour - Standard Rate Per Hour ) ...
Q: Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. T...
A:
Q: XYZ Corporation has accounting income for the year ending October 31 of $ 174795. Included in this c...
A: Dividend received from Canadian subsidiary is not eligible for tax withholding. Therefore, dividend ...
Q: CO and VID are partners in COVID Enterprises. Partnership profits and losses are allocated as follow...
A: Partnership is termed as the relationship between two or more persons who agrees to run business and...
Q: Effectiveness/efficiency; ethics; writing Top management of Capital Services observed that the budge...
A: Efficiency is yield and measured by a ratio of output of input. Efficiency = Actual Output/Actual In...
Q: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Earnings for several employees for the week...
A: Calculation of Employer Payroll tax expense Particulars Amount FUTA (710*0.6%) 4.26 SUTA (710...
Q: Which of the following is not true?A. Organizations share a common purpose or mission.B. Organizatio...
A: Organization - Organizations is an entity having one or more people having different purpose, and a...
Q: Which of the following would be considered a long-term liability? a. interest payable b. mortg...
A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle...
Q: the implementation of a new system would have a payback period of 5 years while gaining Php 175,000 ...
A: 1)Payback period is a period which shows how much time a project takes to recover the initial invest...
Q: Comprehensive Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter ma...
A: Statement of shareholder’s equity as follows: It is a financial statement that states the value of...
Q: from home). Super Soups did an analysis of the capabilities of the old production equipment and all ...
A: Loss on Sale of Assets: It is an ordinary activity and occurs when carrying amount of assets is les...
Q: urtz Fencing Inc. uses a job order cost system. The following data summarize the operations related ...
A: Work in Process: Inventory is a financial term that alludes is the raw materials used to manufacture...
Q: If Concord Company issues 5100 shares of $5 par value common stock for $182000, Common Stock will be...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio ...
A: Contribution margin or gross profit refers to the profit earns by the company for selling goods and ...
Q: the beginning of the month, the Painting department of Skye Manufacturing reported the followin Dire...
A: Under the weighted-average cost method, costs of inventory change with every purchase or sale perpet...
Q: Willams Company computed its cost per equivalent unit for direct materials to be $180 and its cost p...
A: Finished goods inventory = No. of units completed and transferred x Cost per Equivalent unit where, ...
Q: SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson owns a retail business. The following sales, retur...
A: Journal Entry The purpose of preparing the journal entry to enter the required transaction into debi...
Q: ABC Company is a relatively small dry-cleaning operation that has a very steady level of business. ...
A: Solution Fraud is the illegal alternation of a company's financial statements in order to manipulate...
Q: Adrian and Nino formed a Partnership . Upon formation Adrian contributed 200,000 and Nino contribute...
A: In the case of Partnership firms, net profits are divided among the partners equally unless their pr...
Q: PRINCESS Trading Company presents the following data as of December 31, 2018. Percent to sales Amoun...
A: Additional Fund Needed: Greater funds necessary (AFN) refers to the amount of money a corporation ne...
Q: Brown Corporation shows its cash account balance of P525,000 before reconciliation. The bank stateme...
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with...
Q: At the beginning of April, Chickadee Corporation has a balance of $11,500 in the Retained Earnings a...
A: Using the external transactions above, computation of the balance of retained earnings at April 30: ...
Q: QUESTION 6 During its first month of business in May, On-a-roll, Inc., purchased 100 rolls of wallpa...
A: Closing units (rolls) = Units purchased - units sold Therefore units sold = units purchased - closin...
Q: The following balances were the balances of accounts appearilg Iron And steel Merchant on 31" Decemb...
A: Journal entries shows the recording of the transactions during an accounting year and every transact...
Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property....
A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is us...
Q: Account Balance Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400...
A: Arenas ,Delay, and Laurent Statement of Liquidation June 30,2019
Q: 4/3 Paid the Gazette $200 to place an employment advertisement for an accounting clerk. how to solve...
A: The whole cost of hiring a new employee, from job posting to the first day on the job, is referred t...
Q: Why are tax havens controversial?
A: Tax haven are part of a country where foreign investors have to pay a very low tax rate for certain ...
Q: Suppose you have $2,100 and plan to purchase a 10-year certificate of deposit (CD) that pays 13.1% i...
A: Value when the CD matures = 2100 x (1 + 0.131)^10 = $7191.93
Q: Sky is the owner of a small business called Sky’s Skateboards. Sky, who grew up in a circle of avid ...
A: Solution Business Memo is a short document used to transmit information with in an organization.
Q: The following information pertains to Ft. Collins Company's direct labor for March 2019: Standard di...
A: Formula: Actual labor cost = Actual Hours x Actual rate
Q: Harmony, a citizen and resident of the Philippines, married, died, leaving the following properties:...
A: Correct option is p450,000.
Q: Determine the capitalized cost of a resear construction; P100000 at the cost of every y hereafter fo...
A: Original Construction Cost =P5,000,000 Annual Operating Cost from year 1 to 5 = P100,000 Annual Oper...
Q: Respond to this topic by indicating what you think are the top three ethical problems facing Account...
A: Bookkeeping: Bookkeeping is the course of recording and coordinating all the deals that have happene...
Q: not-for-profit
A:
Q: Direct Materials Variances The following data relate to the direct materials cost for the productio...
A: Direct material cost variance means variance between standard cost and actual cost of materials whic...
Q: Compute 3M's accounts receivable turnover and the average collection period in days.
A: Accounts receivable turnover (ART) ratio refers to a ratio which shows the relationship between the ...
Q: A, B and C formed a partnership on June 1, 2019. A is an industrial partner while B and Care capital...
A: Profit or loss from partnership business should be shared between the partners in their profit shari...
Q: Moustapha transfers a capital asset with a $60,000 adjusted basis to X Corp in a Section 351 transac...
A: Total basis refers to the amount which is paid in securing as well as holding the particular investm...
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay ...
A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.
Ace Company
|
€500,000 |
Share premium – Preference |
€280,000 |
Ordinary share capital, €25 stated value |
€1,500,000 |
Share premium - Ordinary |
€900,000 |
Treasury Shares (10,000 ordinary shares) |
€150,000 |
|
€1,235,000 |
Show solution and explanation in determining how much is the cost per share of the treasury shares.
Step by step
Solved in 2 steps
- Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholdersCommon Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
- 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. 6.73Stock 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.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Cumulative Preferred Dividends Capital stock of Barr Company includes: As of December 31, 2018, 2 years dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total S360.000. Required: Determine the amount of dividends that will be paid to Barrs common and preferred stockholders in 2019. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive.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?
- Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?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.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.