At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and 100,000, 10% 100 par value convertible cumulative preference shares outstanding. The preference shares are convertible into 100,000 ordinary shares before share dividend and share split. During the current year, the following transactions affected the ordinary shares. February 1 Issued 120,000 shares March 1 Issued a 20% share dividend May 31 Acquired 100,000 treasury shares Issued 3 for 1 share split June 1 October 31 Reissued 60,000 treasury shares The net income was $35,000,000 and the entity did not declare dividend on preference shares.
Q: financial statements in any business organization
A: Financial Statements of the company include income statements, balance sheets, and cash flow…
Q: January 1, 2022, ABC Company purchased 70% of ordinary shares of XYZ Company at a price of…
A: Consolidation of Holdings by one company of other company, it is given that ABC co. purchased the…
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: Here discuss about the cumulative effect in the income state after change in the valuation of the…
Q: ABC and XYZ have been operating an accounting firm as partners for a number of years and at the…
A: Given, Beginning capital balance of ; ABC = 85,000 XYZ = 70,000 Additional capital by ; ABC = 10,000…
Q: SCARLET Corporation has an authorized capital of 10,000 shares of 100 par, 8% cumulative preference…
A: Formula: Book value per ordinary share = Total Equity available to Ordinary shareholders / No. of…
Q: Assets: Year 2 Year 1 Current assets $445 $280 Plant assets 680 520 Total assets $1,125…
A: Part-A Increase/(decrease) = Year 2 - Year 1 Increase/(decrease) percentage = Increase /…
Q: Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales…
A: Formulas: Expected no. of units produced = Expected unit sales + Desired ending inventory -…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Formula: Basic earnings per share = (Net income - Preferred dividend)/ No. of Ordinary shares…
Q: Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by…
A: Cash sales are 30% 65% of credit sales will be received in same quarter. Quarter 2 sales units =…
Q: Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc.,…
A: Answer:- Income definition:- In simple words income can be defined as the amount of money received…
Q: The trial balance prepared after all the adjusting entries have been posted is called what? Group of…
A: An adjusted trial balance is a listing of the ending balances in all accounts after adjusting…
Q: Instructions. 1. Prepare the general journal entries DATE TRANSACTIONS 1/2/16 Invested PHP500,000 to…
A: A journal entry is used to record a business transaction in the accounting records of a business. A…
Q: The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2…
A: Financial analysis is widely used by companies to determine the profitability of the business and…
Q: Sales Cost of goods sold P800,000 480,000 320,000 Gross Profit Operating expenses 40,000 Selling…
A: Comparative financial statements are prepared to analyze the financial statements of the company. It…
Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…
A: Present value = Amount to be received annually X Present value of annuity of $ 1 at 3% for 8 years
Q: 5. Jackie is a 50% partner in The Lunch Box. She is to receive a guaranteed payment of $30,000. If…
A: A partnership is an agreement where 2 or more people sign a partnership agreement to operate a…
Q: On January 1, 2020, Tonie, Abbie and JM entered into articles of co-partnership for the operation of…
A: Admission of partnership will involve the cash or assets contributed by incoming partner to become…
Q: CARMINE Company is preparing the interim financial statements for the first quarter ended March 31,…
A: Note: It is given in the question that, advertising expense will be incurred evenly during 2022, so…
Q: What is the net effect of the above errors in the 2021 net income? (If understated, put a negative…
A: The accrued expense are those expenses that are due but the payment of these expenses are not made…
Q: Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a…
A: We should deduct outstanding checks from cash Balance according to bank to get Adjusted balance.
Q: Skinner Butte, Inc. had the following information: Net income Depreciation Increase in accounts…
A: Cash flow statements show the cash inflow and outflow of the cash and cash equivalents. Cash flow…
Q: 3. Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022…
A:
Q: Original cost of a machine was Rs. 2,52,000; Salvage value was 12,000. Useful Life was 6 years,…
A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installment…
Q: hich of the following accounts ordinarily would not appear in the post-closing trial balance? Hint:…
A: Temporary accounts are the accounts which has been closed and their balance has been moved to…
Q: Merrill Corp. has the following information available about a potential capital investment:…
A: 3. Calculation of Net Present Value Year Cash Flow Discount Factor @ 13% Present Value Year 0…
Q: What is an account offset against another account called? For example, if the original cost of a…
A: A contra account is an account used to reduce the balance of a related accountThis will useful in…
Q: . Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Which of the following would increase risk? a. Raise the level of working capital b. Increase the…
A: The working capital is the funds it needs to carry out day-to-day operations like cash, accounts…
Q: Lina purchased a new car for use in her business during 2019. The auto was the only business asset…
A: Depreciation is a charge applied to assets at the conclusion of a period that reduces their entire…
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…
Q: 4. Would you support the proposal? Why or why not? 5. Unit volume to achieve an operating profit of…
A: The sums whereby a firm expects its profits to fluctuate as a result of an investment decision are…
Q: What are the 7 advantages of using a special journal? give brief explanation of the each.
A: Introduction:- The special journal is the general entries of such transactions that are required to…
Q: Please list and describe all of the issues that concern accountants and auditors regarding potential…
A: Concerns regarding accountants' and auditors' legal liability are growing by the day. Accountants…
Q: TRUE OR FALSE?
A: An unqualified opinion is an opinion given by an auditor after analyzing the financial statements of…
Q: 1.Investments are assets held by an entity for the accretion of wealth through distribution, for…
A: Account receivable are those customers who did not pay at the time of purchase or to whom credit…
Q: 100,000 150,000 340,000 110,000 80,000 200,000 100,000 300,000 100,000 80,000
A: The balance sheet is given as,
Q: On December 31, 2021, BLACK MAMBA Company appropriately changed its inventory valuation method to…
A: Introduction: A corporation's income statement details its performance over a specific time period,…
Q: A company currently sells 400 units at a sales price of $300. Its contribution margin is 40%, and…
A: Formula: Margin of safety = Actual Sales value - Break even sales value Deduction of break even…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: Financial ratios are determined to analyze the performance of the business related to a particular…
Q: 80,000 80,000 20,000 18,000 20,000 30,000 122,000 158,000 8,000 12,000 500,000 450,000 100,000…
A: To compute the following as, Return on common stockholder's equity Earnings per share Price earnings…
Q: Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; ● . Land…
A: In consideration of the above information, Cash is P60,000; P200,000 in land having a P410,000…
Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which the first…
A: Uniform Annual Amount: A uniform series, often known as an annuity, is a collection of payments that…
Q: Use the information from the Adjusted Trial Balance and Financial Statement templates provided in…
A: The income statement shows the net income or net loss calculated by deducting the expenses from the…
Q: The following information on a defined benefit plan is provided: FVPA, beg beg 2,200,000 Current…
A: Defined Benefit Plan Employees of the entity are given with a defined benefit plan after they have…
Q: For a printing company, the cost of paper is classified as a: A Period cost. B Direct…
A: The direct materials cost include the costs related to direct raw materials used for production.
Q: Explain, what kind of assets do mining companies have? How are these assets different from the…
A: A resource of economic value owned or managed by an individual, company, or country in the hope of…
Q: Edward donated a lot worth P650,000 to his cousin Karl subject to the condition that Karl will…
A: Donor's tax, often known as gift tax or donation tax, is levied on gratuitous transfers of assets to…
Q: AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additiona redeemable preference…
A: Explanation of concept Preference Shares are the shares which have been issued with preference right…
Q: ANSWER IN 20 MINUTES Sunstar Manufacturing Company produces special kitchen utensils using the…
A: The cost of sales is the overall of all prices incurred withinside the manufacturing of an offered…
Q: General Mills is authorized to issue 13 million, $1 par common shares. During 2021, its first year…
A: Introduction: Common shares normally provide shareholders the right to vote at shareholder meetings.…
What is the diluted earnings per share?(Present answer in 2 decimal places, example: x.xx)
Learn your way
Includes step-by-step video
Step by step
Solved in 4 steps
- Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
- COMMON AND PREFERRED CASH DIVIDENDS Ramirez Company currently has 100,000 shares of 1 par common stock outstanding and 5,000 shares of 50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of 0.30 per share on common stock to shareholders of record on August 1, payable on August 5. On July 15, the board of directors declared a semiannual dividend of 5 per share on preferred stock to shareholders of record on August 5, payable on August 10. Prepare journal entries for the declaration and payment of the common and preferred stock cash dividends.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock. It is also authorized to issue 750,000 shares of $6 par value common stock. It has issued 50,000 of the common shares and 1,000 of the cumulative preferred shares. The corporation has never declared a dividend and the preferred shares are one years in arrears. Aggregate Mining has the following transactions this year: Journalize these transactions. For the stock split, show the calculation for how many shares are outstanding after the split and the par value per share after the split
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of 50 par preferred stock and 70,000 shares of 1 par common stock are outstanding. May 10 Paid the cash dividends. Oct. 15 Declared semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on November 5, payable on November 20. Nov. 20 Paid the cash dividends. 22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at 15 per share. Dec. 16 Issued certificates for common stock dividend. 20 Board of directors declared a two-for-one common stock split. REQUIRED Prepare journal entries for the transactions.Issuances of Stock Cada Corporation is authorized to issue 10,000 shares of 100 par, convertible, callable preferred stock and 80,000 shares of no-par, no-stated value common stock. There are currently 7,000 shares of preferred and 30,000 shares of common stock outstanding. The following are several alternative transactions: 1. Purchased land by issuing 640 shares of preferred stock and 1,000 shares of common stock. Preferred and common are currently selling at 113 and 36 per share, respectively, No reliable appraisal of the land is available. 2. Same as Transaction 1, except that land is appraised at 104,000, and the preferred stock has no current market value. 3. Issued, for 99,000 cash, a combination of 400 shares of preferred stock and bonds payable with a face value of 50,000. Currently, the preferred stock is selling for 120 per share and the bonds at 104. 4. Same as Transaction 3, except that the bonds do not have a current market value. 5. Same as Transaction 3, except that the preferred stock does not have a current market value. 6. Preferred shareholders (who had originally paid the corporation 110 per share for their stock) convert 6,500 preferred shares into 19,500 shares of common stock. The current market prices of the preferred stock and the common stock are 120 and 41 per share, respectively. 7. The corporation calls the 7,000 shares of preferred stock (originally issued at 110 per share) at 123 per share. Common stock is currently selling for 42 per share. Shareholders elect not to convert into common stock. 8. Same as Transaction 7, except that shareholders owning 2,000 shares of preferred stock elect to convert each share into 3 shares of common stock The remaining 5,000 preferred shares are retired. Required: Next Level Prepare the journal entry necessary to record each transaction. Below each entry, explain your reason for the values used.
- 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.Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. Preferred stock subscriptions receivable 50,000 Preferred stock, 10 par, 9% (200,000 shares authorized; 20,000 shares issued)200,000 Preferred stock subscribed (10,000 shares)100,000 Paid-in capital in excess of parpreferred stock40,000 Common stock, 10 par (100,000 shares authorized; 60,000 shares issued)600,000 Paid-in capital in excess of parcommon stock250,000 Retained earnings750,000 During 20--, Gonzales Company completed the following transactions affecting stockholders equity: (a) Received 20,000 for the balance due on subscriptions for 4,000 shares of preferred stock with a par value of 40,000 and issued the stock. (b) Purchased 10,000 shares of common treasury stock for 18 per share. (c) Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d) Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e) Sold 5,000 shares of common treasury stock for 100,000. (f) Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g) Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.