ARR Corporation’s account balances during 2019 showed the following changes, all increases: Assets -₱3,560,000; Liabilities -₱1,080,000; Ordinary share capital -₱2,400,000; Share premium -₱240,000. There were no changes in accumulated profits for 2019 other than a ₱520,000 dividend payment and year’s earnings. How much is the net income(loss) for the year? ₱ 360,000 ₱ (160,000) ₱ (440,000) ₱ (360,000)
Q: The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase…
A: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: The changes in account balances of Smile Co. during 2020 are as follows: Assets: P133,500 increase…
A: Net income is the worth which is ascertained by deducting all the operating expenses from the gross…
Q: 2022, Draper Company discovered errors made in 2019-2021, its first thre years of operation 2021…
A: Calculations of Restated 2021 Net Income. Hence, Restated 2021 Net Income is $23,350. Working…
Q: At January 1, 2020, Beidler Company reported retained earnings of $2,000,000. In 2020, Beidler…
A: The corrected net income is the difference of the net income and the amount of depreciation after…
Q: The entity has collected P20,000 interest during 2020. While P3,700 is recorded in interest…
A: When a company follows accrual basis of accounting, there may be differences between the interest…
Q: The following information pertains to BT21 Co. for the year. · Net assets, Jan.1, 2021-…
A: Solution: Profit (Loss) = Net asset on Dec 31, 2021 - Net asset Jan 1, 2021 + Dividend declared -…
Q: The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase…
A: Income is inflows of economic benefit through increasing the balance of assets and decreasing the…
Q: Womack Corporation ended its fiscal year on September 30, 2021, with cash of $72 million, $21…
A: Balance sheet is the financial statement which is prepared to report all the assets, liabilities and…
Q: During 2019, Canton Company's assets increased $95,700 and the liabilities decreased $19,300. Canton…
A: Accounting equation also known as the balance sheet equation is a representation of the relationship…
Q: Blue Corporation has retained earnings of $689,900 at January 1, 2020. Net income during 2020 was…
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: What amount should be reported as corrected retained earnings on January 1, 2021?
A:
Q: As of December 31, 2019, the capital of Sweet & Spicy Company are equal to two-thirds of the total…
A: Total assets = Capital - liabilities Capital = total assets x 2/3
Q: Sprite Company had the following liabilities at December 31, 2019: Trade accounts payable, net of…
A: Solution: total current liabilities at December 31, 2019 = Trade accounts payable + Accrued…
Q: The following information is from Amos Company for the year ended December 31, 2019. Prepare a…
A: Statement of retained earnings shows the movement in retained earnings that is increase and decrease…
Q: Pullman Corporation had retained earnings of €2,100,000 at January 1, 2019. During the year the…
A: Statement of retained earnings: The statement of retained earnings shows the change in the retained…
Q: The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase…
A: Liabilities: It is the amount the company is liable to payoff in the accounting life of the company.…
Q: ARR Corporation's account balances during 2019 showed the following changes, all increases: Assets -…
A: The income statement is prepared by the business organizations so as to know how much amount of…
Q: What is the retained earnings balance on January 1,2019 before restatement? AL Company provided…
A: Retained earnings are the accumulated earnings in the business, which belongs to the owners and…
Q: Poh Inc., corporation, has the following pertinent information happened during year 2022 P 1,570,000…
A: Statement of Cash Flows using indirect method:
Q: The income and expense accounts of Rosie Corp. for the year ended 2019 are listed below. Sales…
A: Total Profit = Total Revenue - Total Expenses
Q: The income and expense accounts of Rosie Corp. for the year ended 2019 are listed below. Sales…
A: Statement of owner's equity gives information about the changes in the owner's capital account.…
Q: On January 1, 2021, the balance of Owner's Capital of FDN Company is P440,000. During the year the…
A: Owners' investment balance can be calculated by adding investment and net income and adjusting…
Q: The following information pertains to BTS Co. for the year. · Net assets, Jan.1, 2021-…
A: Increase in Net assets = Net assets, Dec. 31. 2021 - Net assets, Jan.1, 2021 = P2,112,960-1,008,480…
Q: In May 2020, Falcon Corporation sold to Eagle Company 5 computers which Eagle paid a total of…
A: The accounting equation is known as the equation that describes the transaction in accounting form.…
Q: Upright Company reported a retained earnings balance of P4,000,000 on January 1,2021. In August…
A: Retained earnings refer to the accumulated portion of the profits of business that is not…
Q: Groom Company began operations on January 1, 2021 with P 1,000,000 from the issuance of shares and…
A: Answer) Calculation of Total Assets on December 31, 2021 Total Assets = Stockholders’ Equity +…
Q: Doris Corporation has retained earnings of 684,800 at January 1, 2019. Net income during 2019 was…
A: Ending retained earnings formula: = Opening retained earnings + Income earned - cash dividend paid
Q: Zebra Company has determined the 2021 net income to be P 5,000,000. Revenue received in advance in…
A: The unearned revenue is the revenue received in advance from customers but the services are not…
Q: On January 1, 2021 Phillip Enterprises showed total assets of P5,000,000 and total liabilities and…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: Dietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and…
A: The sum of all cash flows related to a company's assets is referred to as cash flow from assets.…
Q: On January 1, 2021, the balance of Owner's Capital of FDN Company is P520,000. During the year the…
A: Owners capital means net assets of the company. To calculate owners capital at the end of the year…
Q: On January 1, 2020, Ivanhoe Corporation had retained earnings of $544,000. During the year, Ivanhoe…
A: Retained Earnings = Beginning Retained Earnings + Net Income - Cash Dividends - Stock Dividends -…
Q: BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2018 2019 Liabilities and Shareholders'…
A: Assets = Liabilities + Equity
Q: $15,000 Less: Expenses
A: The consolidated statement is given as,
Q: how much is the net income (net loss) for 2020?
A: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: On January 1, 2021, the balance of Owner's Capital of FDN Company is P440,000. During the year the…
A: Owners capital balance indicates the total investment balance of the owner in the company. It can be…
Q: On 12/31/2020, Heaton Industries Inc. reported retained earnings of $500,000 on its balance sheet,…
A: Retained earnings are earnings retained after paying of dividend. Decrease in retained earnings…
Q: In 2020, Packer Corporation reports gross profits of $200,000, deductible expenses of $30,000, and a…
A: Capital losses are carried forward until it is not offset with the capital gains. Given in the…
Q: Miguel Company reported a retained earnings balance of P4,000,000 at January 1, 2021. In August…
A: Solution Retained earning is the portion of company's profit which a company not distributed as a…
Q: Bell Company provided the following trial balance on December 31, 2019 which had been adjusted…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp. BALANCE SHEET AT END OF…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Dietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and…
A: a] Cash Flow from Assets = Operating Cash Flow – Net Capital Spending - Change in Net Working…
Q: In 2021, ABC Corp., established in 2015 reported the following information: Balance Sheet: Asset -…
A: Answer: Gross sales : P50,000,000 Less: Cost of sales…
Q: On December 31, 2020, the balance sheet of Legend Corporation shows a total equity of P1,260,000.…
A: The ending balance of retained earing can be calculated by adding up net income and deducting…
Q: The capital balance in a sole proprietorship was R800 000 on 29 February 2020, the end of the…
A: Closing balance of capital = ( Beginning balance of capital + Net profit ) – Drawing
Q: Bang Company reported a Retained Earnings balance of P150,000 on December 31, 2021. The following…
A: Depreciation expense net of tax = Depreciation expense x (1 - tax rate) = 25000 * (1-0.25) = P18,750
Q: At the end of the year of 2019, Barney BarN Inc. has a total assets of P 8, 435,969 and total…
A: Accounting equation shows the relation between asset, liabilities and capital. It is based on…
Q: Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total…
A: As per accounting equation, Total of assets should be equal to total liabilities and equity all the…
Q: At the end of the year of 2019, Red Barney Inc. has a total assets of P 10, 556,964 and total…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…
ARR Corporation’s account balances during 2019 showed the following changes, all increases: Assets -₱3,560,000; Liabilities -₱1,080,000; Ordinary share capital -₱2,400,000; Share premium -₱240,000. There were no changes in
Step by step
Solved in 2 steps
- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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?
- Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. In addition, Reinhardt paid of dividends during 2019. On December 31, 2019, Reinhardt prepared closing entries. The net effect of the closing entries on retained earnings was a(n): a. decrease of $4,000. b. increase of $35,000. c. increase of $39,000. d. decrease of $87,000.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.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
- AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2019. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in Problem 16-1?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.