All of the following will affect the retained earnings account, except Adjustment due to overstatement of depreciation expense from previous reporting period and was known only this current year Issuance of treasury shares at P 29 per share when its cost is P 25 per share Quasi-reorganization thru recapitalization Declaration of 10% bonus issue

All of the following will affect the retained earnings account, except Adjustment due to overstatement of depreciation expense from previous reporting period and was known only this current year Issuance of treasury shares at P 29 per share when its cost is P 25 per share Quasi-reorganization thru recapitalization Declaration of 10% bonus issue

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 23E

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
2. All of the following will affect the retained earnings account, except a. Declaration of 10% bonus issue b. Quasi-reorganization thru recapitalization c. Adjustment due to overstatement of depreciation expense from previous reporting period and was known only this current year d. Issuance of treasury shares at P 29 per share when its cost is P 25 per share 3. Which of the following changes the total shareholder's equity balance? a. Declaration of large bonus issue b. Declaration of cash dividends c. Issuance of share certificates due to subscription receivable fully paid d. Issuance of share rights
1. What amount of retained earnings should be appropriated as a result of the given transactions? a. Dividend on its 50,000 shares of 10%, P100 par value cumulative preference share capital have not been declared or paid for 3 years. b. Treasury ordinary shares were acquired ar a cost of P1,000,000 during the year. The treasury share had not been reissued as of year-end. c. At year-end, IRON MAN appropriated P3,000,000 of retained earnings for the construction of a new plant. d. Also, P2,000,000 of cash was restricted for the retirement of bonds payable due in the next year.
On December 31, 2020, Loving Company showed shareholder’s equity of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. The transactions which affected the equity were: An adjustment of retained earnings, beg. for under depreciation: P200,000; gain on sale of treasury shares: P300,000; cash dividends declared: P400,000; net income for the current year: P800,000. What is the retained earnings balance on January 1, 2020? *
Kalinga Company reported the following adjusted account balances at year-end: Share capital 15,000,000 Share premium 5,000,000 Treasury shares, at cost 2,000,000 Actuarial loss on defined benefit plan 1,000,000 Retained earnings unappropriated 6,000,000 Retained earning appropriated 3,000,000 Revaluation surplus 4,000,000 Cumulative translation adjustment- credit 1,500,000 REQUIRED: What amount sjould be reported as shareholder's equity at year-end? a. 31,500,000 b. 32,500,000 c. 28,500,000 d. 25,500,000
Eunice Company provided the following information: Dividends on 1,000 cumulative preference shares, 6%, P10 par value, have not been declared or paid for 3 years. Treasury shares that cost P15,000 were reissued for P8,000. What amount of retained earnings should be appropriated as a result of these items?
A portion of the combined statement of income and retained earnings of Blue Inc. for the current year follows. Income before extraordinary item $15,060,000 Loss from discontinued operations, net of applicable income tax (Note 1) 1,320,000 Net income 13,740,000 Retained earnings at the beginning of the year 84,220,000 97,960,000 Dividends declared: On preferred stock—$6.00 per share $300,000 On common stock—$1.75 per share 15,050,000 15,350,000 Retained earnings at the end of the year $82,610,000 Note 1. During the year, Blue Inc. suffered a major loss from discontinued operations of $1,320,000 after applicable income tax reduction of $1,220,000.At the end of the current year, Blue Inc. has outstanding 8,670,000 shares of $10 par common stock and 50,000 shares of 6% preferred. On April 1 of the current year, Blue Inc. issued 980,000 shares of common stock for $32 per share to help…
Persistence Inc. provided the following information at year end: Share capital 15,000,0000 Share premium 5,000,000 Treasury shares, at cost , 2,000,000 Actuarial loss on defined benefit plan 1,000,000 Retained earnings unappropriated 6,000,000 Retained earnings appropriated 3,000,000 Revaluation surplus 4,000,000 Cumulative translation adjustment - credit 1,500,000 What amount should be reported as total shareholders' equity?A. 31,500,000B. 30,500,000C. 28,500,000D. 26,500,000
A company acquired 97,000 shares of its common stock at a price of $26 per share and accounted for them by the cost method. Par value per share is $8. Subsequently, these shares were reissued at a price of $17 per share. Paid-in Capital from T/S prior to the resale has a balance of $17,000. The resale of the stock decreases retained earnings by _______________. (If the resale does not affect retained earnings, then enter 0)
A company issues 10,000 shares of its own $10 par value common stock to the public for $19 per share. Later, 1, 000 of these shares are bought for $21 per share as treasury stock. Which of the Losses on the resale of these shares would impact reported net income for the year although gains would not The par value method and the cost method have the same total impact on stockholders equity Because this is a stock transaction, retained earnings cannot be affected by a re - issuance of these shares