Before preparing financial statements for the current year, the chief accountant for Toso Shipping discovered the following errors in the accounts, 1. The declaration and payment of NT$$0,000 cash dividend was recorded as a debit to Interest Expense NT$50,000 and a credit to Cash NT$50,000. 2. A 10% share dividend (1,000 shares) was declared on the NT$20 par value shares when the market price per share was NT$36. The only entry made was Share Dividends (Dr.) NT$20,000 and Dividend Payable (Cr.) NT$20,000. The shares have not been issued. 3. A 4-for-1 share split involving the issue of 400,000 shares of NT$5 par value ordinary shares for 100,000 shares of NT$20 par value ordinary shares was recorded as a debit to Retained Earnings NT$2,000,000 and a credit to Share Capital–Ordinary NT$2,000,000. Instructions Prepare the correcting entries at December 31.

Before preparing financial statements for the current year, the chief accountant for Toso Shipping discovered the following errors in the accounts, 1. The declaration and payment of NT$$0,000 cash dividend was recorded as a debit to Interest Expense NT$50,000 and a credit to Cash NT$50,000. 2. A 10% share dividend (1,000 shares) was declared on the NT$20 par value shares when the market price per share was NT$36. The only entry made was Share Dividends (Dr.) NT$20,000 and Dividend Payable (Cr.) NT$20,000. The shares have not been issued. 3. A 4-for-1 share split involving the issue of 400,000 shares of NT$5 par value ordinary shares for 100,000 shares of NT$20 par value ordinary shares was recorded as a debit to Retained Earnings NT$2,000,000 and a credit to Share Capital–Ordinary NT$2,000,000. Instructions Prepare the correcting entries at December 31.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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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?
During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b. Equipment was sold for 2,880. It had an original cost of 10,800 and a book value of 5,400. The loss is included in operating expenses. c. Land with a fair market value of 15,000 was acquired by issuing common stock with a par value of 3,600. d. One thousand shares of preferred stock (no par) were sold for 4.20 per share. Evans provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Evans Company.
During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
The 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.
Before preparing fi nancial statements for the current year, the chief accountant for Toso Company discovered the following errors in the accounts. 1. The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000. Journalize stock dividends. Compare eff ects of a stock dividend and a stock split. Indicate account balances after a stock dividend. Indicate the eff ects on stockholders’ equity components. Prepare correcting entries for dividends and a stock split. Corporations: Dividends, Retained Earnings, and Income Reporting 2. A 10% stock dividend (1,000 shares) was declared on the $10 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $10,000 and Dividend Payable (Cr.) $10,000. The shares have not been issued. Instructions Prepare the correcting entries at December 31.
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As auditor for Chrisley and Dale Associates, you have been assigned to check McKesson Corporation's computation of earnings per share for the current year. The financial controller has supplied you with the following computations. Net Income $6,800,000 Ordinary shares issued and outstanding: Beginning of year 650,000 End of year 4,000,000 Average 2,325,000 Earnings per share calculation: $6,800,000 /2,325,000 = $2.92 You have gathered the following information: On January 1, 2020, McKesson Corp. issued 650,000 shares. Additional issues of shares for the year were as follows: April 1 150,000 shares. May 1…
As auditor for Chrisley and Dale Associates, you have been assigned to check McKessonCorporation’s computation of earnings per share for the current year. The financial controller has supplied you with the following computations. Net Income $6,800,000Ordinary shares issued and outstanding:Beginning of year 650,000End of year 4,000,000Average 2,325,000Earnings per share calculation:$6,800,000 = $2.922,325,000You have gathered the following information:On January 1, 2020, McKesson Corp. issued 650,000 shares. Additional issues of shares for the year were as follows:April 1 150,000 shares.May 1 A 20% share dividendAugust 1 700,000 shares.September 1 340,000 shares.November 1 A 2 for 1 share splitAll 4,000,000 shares were outstanding at December 31, 2020.On January 1, 10% convertible debentures, $60,000,000 face value, were issued at par. Each $1,000 debenture is convertible into 40 ordinary shares. The interest expense for the current year related to the liability component of the…
Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd. provided the following information regarding the accounting for dividends and stock splits: 1. Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the quarterly dividend, and recorded it as a debit to Dividends Expense and a credit to Cash. 2. A 5% stock dividend (1,000 shares) was declared on the common shares when the fair value per share was $12. To record the declaration, Retained Earnings was debited and Dividends Payable was credited. The shares have not been issued yet. 3. The company declared a 2-for-1 stock split on its 21,200, $4 noncumulative preferred shares. The average per share amount of the preferred shares before the split was $70. The split was recorded as a debit to Retained Earnings of $1,484,000 and a credit to Preferred Shares of $1,484,000. Determine if each of the above transactions was recorded…