al b) C) d) Prepare the journal entries to record the transactions and net income. Show the calculation and distribution of cash dividend to all shareholders. Prepare the owners' equity section in the statement offinancial position as at December 31, 2021 Explain THREE (3) differences between equity share andpreference share
Q: How does the adoption of a JIT approach to manufacturing affect process costing?
A: Introduction: JIT (JUST IN TIME); In a just-in-time (JIT) inventory control system, products are…
Q: 6/1 7/1 8/30 8/31 9/4 11/30 12/5 12/31 Adj Bal Prepaid Insurance Prepaid Rent Unearned Service…
A: Journal entries :- Recording of Accounting transaction in a proper way. Ledger :- recording of…
Q: Ground Crew is an airline catering company stationed at O R Tambo International Airport. The company…
A:
Q: Jaden Sales Company engaged in the following transactions for the month of September using the…
A: Hi student Since there are multiple questions, we will answer only first question, Periodic…
Q: Activity-Based Management, Nonvalue-Added CostsDanna Martin, president of Mays Electronics, was…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: What does the full disclosure principle require? O Companies must disclose transactions as part of…
A: The full disclosure principle states that:- financial statements should disclose all events and…
Q: When the effective-interest method is used to amortize notes premium or discount, the periodic…
A: Introduction: Amortization is the process of reducing the book value of intangible assets over a…
Q: Click the icon to view the options table. What would the cost be for each option if the demand level…
A: Note: In the present two Question is been asked, however as per the guidelines first Question is…
Q: Assume that a continuing audit client has recorded Accounts Receivable and Equipment both in the…
A: There is need of company auditing so that accuracy and transparency is maintained in the accounts…
Q: please provide narrations also along with full work step by step Delta Air Lines owns hundreds of…
A: As per the given information: Aircraft cost - $62,500,000 Accumulated depreciation - $46,800,000…
Q: Answer all questions The following information relating to Farasi ltd for the year ending 31st…
A: Earning Per Share- Earnings per share is a financial indicator that shows how well a company does in…
Q: John wants to invest in shares and is trying to decide between two companies (Company A and Company…
A: Answer:- a Share price:- Company B has high share price as compare to company A share price.…
Q: [The following information applies to the questions displayed below.] Hemming Company reported the…
A: Under perpetual inventory system, the inventory is valued after every sales and purchase…
Q: Required: 1-a. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing…
A:
Q: Exercise 12-14 (Algo) Comparison of Projects Using Net Present Value [LO12-2] Labeau Products,…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1…
A: Accumulated depreciation is the sum of depreciation charged till date on an asset. Depreciation…
Q: Klamath Company produces a single product. The projected income statement for the comingyear is as…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Required information E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation)…
A: Lets understand the basics. As per IAS 16 ' Property plant and equipment", when any expenditure made…
Q: The following are credit purchase transactions of Geuel Enterprises for the month of July: Geuel…
A: In the context of the given question, we are required to prepare the journal entries. Journal…
Q: ! Required information E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation)…
A: Depreciation is the reduction or decrease in value over the period of time. Under straight line…
Q: During its first year of operations, World Class Sport Shoes earned net credit sales of $400,000.…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: On January 2, 20X1 Piron Corporation issued 100,000 new shares of its $5 par value common stock…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: The following information is available to reconcile Branch Company’s book balance of cash with its…
A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement is to know…
Q: Required information Use the following information for the Exercises below. [The following…
A: Introduction: A journal entry is a record of a commercial transaction in the accounting system of an…
Q: The cost of direct materials transferred into the Filling Department of Ivy Cosmetics Company is…
A: Direct Material Cost - It is the cost incurred by the company on the direct materials transferred…
Q: The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance…
A: Introduction: Liquidation of partnership is a process of selling all non-cash assets of the…
Q: Discuss Principle-Agent Problem and Give an example in the business world
A: Principal-Agent relationship is one where one party (Principal) gives another party (Agent)…
Q: 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references to select…
A: Income statement is one of the financial statement being used in business for the purpose of…
Q: On January 1, 2016, Fiona sold some land to another company and immediately leased it back again.…
A: Calculation of Present value of lease payment Year Lease Payment PVF @ 8% Present Value 1 $…
Q: Question 4 Garland limited makes four components. A, B, C, and D, for which costs in the forthcoming…
A: Making the decision to manufacture a product internally versus buying it from a third-party provider…
Q: Distinguish between the terms sampling risk and nonsampling risk.
A: Introduction: The risk of sampling is that the conclusion based on a sample may differ from the…
Q: Read the facts of the case in Problem 2-26 to become familiar withthe fraud involving Koss…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage…
A: Inventory is one of the important current assets of the business. It includes inventory of raw…
Q: Transferred-in goods are treated by the receiving department asa. units started for the period.b. a…
A: The equivalent units are the units that represents the number of units that are completed during the…
Q: Determine whether each procedure described below is an internal control strength or weakness; then…
A: Weakness or strength along with IC Principle :- 1 Weakness - Apply technological controls 2 Weakness…
Q: Eilers Company has two producing departments and two support departments. The following budgeted…
A: Overheads are all type of indirect costs related with the production and manufacturing of the…
Q: Requirements 1. Journalize for Lantana the lending of the money on June 6. 2. Journalize the…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: Formulate and calculate the variance analysis between the actual- and the budget profit for the wine…
A: A profit variance analysis is made by the company so that the difference can be measured and…
Q: The trial balance of The White Ribbon failed to agree, and the difference was posted to a…
A: In the context of the given question, we are required to prepare the rectification entries, the…
Q: What is the equation that shows the relationship between elements of financial data
A: The equation that shows the relationship between the elements of financial data is shown hereunder :…
Q: On January 1, 2024, Cat Company purchased the following investments: 1) 20,000 shares (representing…
A: Introduction: If an investor company makes an investment between 20 to 50% in the investee company…
Q: Garden Fresh is a company that grows fresh mangoes in the Letsitele area. They supply fresh mangoes…
A: Given, Total sales= R 4,000,000 Cash sales= 20% of total sales= R 800,000 Total purchases= R…
Q: Calculate all possible solvency ratios for 2021 and 2020. (Round answers to 1 decimal place e.g.…
A: Solvency Ratios :— These are the ratios which are calculated to measure the ability of the…
Q: Sales Revenue Approach, Variable Cost Ratio, Contribution MarginRatioArberg Company’s controller…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variable…
Q: Using the relevant sections of the Income Tax Act of Mauritius, distinguish between the tax…
A: Tax residency is very important for determining the taxes of company and taxes of individual.
Q: A company has the following purchases and sales during October. Using the FIFO periodic inventory…
A: Inventory refers to the stock that the company kept for resale purposes or the goods that are not…
Q: ke me to the text rago Company has a fiscal year end on December 31. The company has only one…
A: Date Purchase Sale Balance Quantity Cost Quantity Cost Quantity Value Jan 15 100…
Q: (c) During the most recent year, Papasab Company had the following data: Table 7: Production Costs…
A: Variable Costing - Variable costing formula = Sales - Variable Costs - Fixed Cost = Operating Income…
Q: Required a. Compute the net present value of each opportunity. Which should Mr. Keams adopt based on…
A: NPV :— NPV is the Difference between PV of cash inflow and Cash outflow of the capital project. If…
Q: Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal,…
A: Purchase Journal :— It is book of prime entry. Transaction related to purchase on credit is…
Step by step
Solved in 5 steps
- 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.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.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.
- Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.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.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.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. 6.73Anoka 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?
- 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.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Cary 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