b) On January 1, 2014, Dolan Corporation had 60,000 ordinary share issued and outstanding. During the year, the following transaction Mar 1 Issued 20,000 ordinary shares for RM400,000. June 1 Declared a cash dividend of RM2 per share to sharehol June 30 Paid the RM2 cash dividend. Dec 1 Purchased 4,000 ordinary shares for the treasury for R Dec 15 Declared a cash dividend on outstanding shares
Q: On December 31, 2015, Raja Corporation's balance sheet reported the following: The following…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: Wade's outstanding stock consists of 40,000 shares of noncumulative 7.5% preferred stock with a Rs.…
A: Dividends are to be first paid to preference shareholders, to the extent payable and only the…
Q: Horton Co. was organized on January 2, 2012, with 500,000 authorized shares of P10 par value common…
A: January 5 Cash Ac Dr. 5250000 to Share capital 3750000…
Q: Wade's outstanding stock consists of 40,000 shares of noncumulative 7.5% preferred stock with a Rs.…
A: It is the total money paid by the company at regular intervals from its profits or reserves to the…
Q: On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a…
A: Common stock par value = $ 10 Issued price = $ 15 Paid in capital in excess of par common stock =…
Q: December 31, 2017, Raja Corporations's balance sheet reported the following: Stockholders' Equity…
A: Solution Concept Cost method of accounting for treasury stock While using the Cost method of…
Q: M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares of…
A: Stockholders' equity: Stockholders' equity refers to the summation of total ordinary share capital,…
Q: On December 31, 2014, Brave Corporation reported the following on its balance sheet: Cash 22,000…
A: Share premium is the excess amount paid or received over the par value of share.
Q: a. Prepare journal entries b. Assuming that the profit for the year amounted to P450,000, prepare…
A: The statement of equity records the variation in the balance of equity of the company.
Q: On January 1, 2010, the stockholders’ equity section of Nunez Corporation shows: Common stock ($5…
A: Journal: Recording of a business transactions in a chronological order.
Q: Astro Corporation was started with the issue of 2,000 shares of $5 par stock for cash on January 1,…
A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…
Q: At December 31, 2015 and 2016, Plank Corp. had outstanding 2,000 shares of $100 par value 8%…
A: The dividend is paid to shareholders from the retained earnings of the business. The preference…
Q: On December 31, 2017, Zero Co. showed the following shareholders' equity: Share capital, P100 par,…
A: The dividend is declared from the retained earnings of the business. The dividend is paid only for…
Q: Kakhie Company issued share capital of 20,000 shares with USD5 par at USD10 per share. On January 1,…
A: The calculation is given below
Q: Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10…
A: Introduction: Shareholders' equity which is also known as net worth of the company, is the owners…
Q: Maxwell had the following transactions pertaining to its ordinary shares during the first year of…
A: Here in this case, we are required to make journal entry for issue if share. Company issue shares to…
Q: Amel Corporation was organized on January 1, 2015, with an authorization of 1,200,000 shares of…
A: Every company raises finance by way of issue of shares. These can be ordinary shares or preference…
Q: The shareholders' equity section of S Company on January 1, 2018 showed the following: Ordinary…
A: The financial transaction related to the stocks and retained earnings affect the shareholders'…
Q: A. Journalized the following transactions and prepare the Trail Balance: January, 2021 1 Pak Wheel…
A: The following computations are done for Pak Wheel Corporation.
Q: Bentiey Corporation received cash from issuing 12,000 shares of common stock at par on January 1,…
A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…
Q: Horton Co. was organized on January 2, 2012, with 500,000 authorized shares of P10 par value common…
A: Paid-in Capital from the Treasury Stock account is the excess amount over the purchased price of the…
Q: The shareholders' equity section of S Company on January 1, 2018 showed the following: Ordinary…
A: SOLUTION- TREASURY SHARES IS A SHARES OR STOCK WHICH A COMPANY REPURCHASED OR BOUGHT BACK FROM THE…
Q: ABC Corporation was organized on January 3, 2014, with authorized capital of 100,000 shares of $10…
A: January 7 :- Issued 40,000 shares at $12 per share which means Common stock = 40,000 x 10 = 400,000…
Q: Barbie Co. was organized on January 2, 2015, with 500,000 authorized shares of P10 par value common…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: On January 1, 2012, Kristen Corporation had the following stockholders’ equity accounts. Common…
A: (a) Journal entry for the transactions: Date Account title and explanation Debit Credit Feb 1,…
Q: Bentley Corporation received cash from issuing 13,000 shares of common stock at par on January 1,…
A: In the given question, the Corporation has issued 13,000 shares at par. The par value per share is $…
Q: The Good News Corporation was formed on April 1, 2014. There were two transactions involving…
A: The shares can be issued against cash or non cash assets. The non cash assets may include land,…
Q: On April 1, 2017, the directors of ABC Ltd issued 1,00,000 equity shares of BDT 10 each at BDT 12…
A: given On April 1, 2017, the directors of ABC Ltd issued 1,00,000 equity shares of BDT 10 each at…
Q: Derek Corporation was organized on January 1, 2009. During its first year, the corporation issued…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock…
A: Cumulative preference shares are those shares for which the shareholders get the dividend for those…
Q: b) An analysis of stockholders' equity of Hahn Corporation as of January 1, 2017, is as follows:…
A: Shares of a company can be issued at par or at premium. Any amount over and above the par price is…
Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: Mai Corporation was organized on January 1, 2016, Duringits first year, the corporation issued…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock…
A: Following is the answer to given question
Q: Pico Company was organized on January 1, 2015 with authorized capital of 100,000 shar of P200 par…
A: The share premium is the amount received in excess of par value of shares issued.
Q: he shareholders' equity section of Sanchez Company on January 1, 2018 showed the following:…
A: SOLUTION- NOTE = 1- RETIRING OF STOCK WILL NOT EFFECT THE TOTAL STOCKHOLDERS EQUITY AS IT WILL…
Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: On January 1, 2016, the accounts of Mac Corporation showed the following: Common stock, par $1,…
A: Working: Number of shares issued and outstanding at beginning =Capital in excess of par value / per…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Sale value of treasury stock=Number of shares×Value per share=11,000×$11=$121,000
Q: Helu Corporation was organized on January 1, 2021, with an authorization of 1,000,000 ordinary…
A: Share premium is the accounting term used to represent the amount collected over the par value of…
Q: Triad declared and paid a P25,000 cash dividend on December 15, 2008. If the company's dividends in…
A: Dividend paid = P25,000 Arrears = P6,000 Dividend of this year = P19,000
Q: Use the following information for the Exercises below. [The following information applies to the…
A: Dividend: It is the amount of income earned by the stockholders in return for their investment. It…
Q: Bizarre Company acquired 6,000 shares with P1 par value at P36 per share. During 2012, the entity…
A: When cost method is used to measure treasury shares. Then treasury shares are to be measured…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.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 0 par common stock at 0, 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 375. The bonds are classified as a held- to-maturitv 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 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued 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 (1). 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 had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- 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 375. The bonds are classified as a heldtomaturity 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 issued 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 (l). 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 had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.
- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.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.
- 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.Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?