CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited shares authorized; 4,100,000 shares issued and outstanding Retained earnings $1,010, 080 1,380, e00 On April 1, 2020, 210,000 common shares were issued at $0.70 per share. On June 1, the board of directors declared a 5% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.98, $1.86, and $2.46, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,495,000. Required: Prepare the company's equity section on the December 31, 2020, balance sheet. CARFIND INC. Equity Section of Balance Sheet December 31, 2020 Contributed capital: Total equity
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Preference shares-Cumulative These are the shareholders having right to receive dividends if…
Q: What is the correct answer?
A: The treasury stock are the own shares of the company that are repurchased from the shareholders of…
Q: SKIPPY Company reported the following amounts in the equity section of its December 31, 2019…
A: The retained earnings are the earnings of the business that are retained for the future purpose of…
Q: During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and…
A: In case of non-cumulative preferred stock, if any dividend remains unpaid in any given year, it is…
Q: Jameela Corporation reports the following stockholders' equity section on December 31, 2019. Common…
A: The treasury shares are the company's issued share that the company purchase from the market and…
Q: the shareholders’ equity section of Pampanga Corporation’s statement of financial position as of…
A: The amount of retained earnings is that portion of the company's equity that can be utilized for the…
Q: On January 1, 2020, vic Corporation had the following shareholders’ equity accounts: vic…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: oy Ashliy Company reported the following amounts in the shareholders' equity section Of its December…
A: Preference shares, also known as preferred stock, were shares of a corporation's stock that pay…
Q: The December 31, 2019 shareholders' equity section of Refozar Corporation's statement of financial…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: Joy Ashliy Company reported the following amounts in the shareholders' equity section Of its…
A: Treasury stock are the stock held by the company for the purpose of either redemption or for gain in…
Q: The shareholders equity section of Good ufe Company shows the following on December 31, 2018:…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: The equity section of the Georgie Inc. showed the following data on December 31, 2019: Share…
A: Journal entries: These are the entries prepared to record the business transactions in the books of…
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…
A: No. of shares issued under bonus issue = No. of shares outstanding x bonus rate Amount charged to…
Q: Ôn December 31, 2019, the shareholders' equlty section of the balance sheet of R & L Corporation…
A: The stock dividend is the dividend declared in the form of shares to the shares issued and…
Q: 77,000 shares authorized and issued* 1,232,000
A: A Dividend is a payment given to stakeholders by a corporation. When a firm makes a profit or has a…
Q: Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The shareholders' equity section of Charles Corporation at December 31, 2018 included the following:…
A: Preferred dividends are the dividends that are accrued paid on a company's…
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: The Shareholders' Equity of M. Gangoso Corporation at Jan 1, 2019, appears below: 8% Preference…
A: T-Accounts-: A T-Account is the graphic indication of a common ledger that documents a company's…
Q: Joy Ashliy Company reported the following amounts in the shareholders' equity section Of its…
A: Retained earnings is an account which represents the accumulated earnings of a firm till the balance…
Q: The equity section of Gunkel Corporation as of December 31, 2021, was as follows: Share…
A: Retained earnings is increases with net income and decreases with net loss . Also the dividends…
Q: The shareholders' equity of Core Technologies Company on June 30, 2020, included the following:…
A: For recording stock dividend market price on the date of declaration is considered. Stock dividend =…
Q: Ghatani Corporation reports the following stockholders" equity section on December 31, 2020. -…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following:…
A:
Q: Garda World Security Corporation has the following shares, taken from the equity section of its…
A: Dividend - Dividend is the amount paid by the company to its preference and common shareholder's.…
Q: the end of 2021, selected records and accounts of Megamoth Corporation reflected the following…
A: 1) Calculate the weighted average number of shares outstanding: Months Actual Share Outstanding…
Q: Nams auto parts reports the following components of stockholders' equity at December 31, 2018.…
A: Journal entries are recorded in chronological order where every transactions will be recorded in the…
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A:
Q: Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Good life company shows the following of December 2018 : Ordinary shares of 900000 shares @ P10 per…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…
A: Note : treasury shares do not entitle to stock dividend. On 30 September 30℅ stock dividend declared…
Q: Raxx Ltd. began 2020 with the following balances in its shareholders' equity accounts: Common…
A: An income statement is one of the financial statements of a company which is prepared at the end of…
Q: The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its…
A: Treasury shares are the shares of the own company that are repurchased from the market for resale or…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Treasury Stock: These are the shares that are purchased back by the company from the open market.…
Q: Alexander Corporation reports the following components of stockholders’ equity at December 31, 2019.…
A: The shareholders' equity section records the issued capital, additional paid in capital and retained…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…
A: Journal is the primary book where transactions are originally recorded. Journal entry: A journal…
Q: An excerpt from the financial records of Windle Inc. (Windle) at December 31, 2019, was as follows:…
A: In the given question we are provided with the information of Windle Inc. With the given information…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Number of shares on June 30=Initial issue-Reacquisition+Resell=900,000-75,000+45,000=870,000 shares
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Shareholders equity comprises of share capital and reserves and surplus less treasury stock.
Q: At the beginning of 2019, Hardin Company had 200,000 shares of $10 par common stock outstanding.…
A: Solution: Introduction: Share of stock represents both Common and Preferred stock of capital which…
Q: ananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Solution Given Number of authorized shares 400000 Jan 5 issued 225000 shares July 28…
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: A non-participating preferred share, Non-Participating Preference shareholder is only entitled to…
Q: he accounts from the shareholders' equity section of the balance sheet of Western Company showed the…
A: Given Information: Ordinary shares P475,000 Share premium P6,650,000 Retained earnings…
Q: Suivant SA’s ledger shows the following balances on December 31, 2019Share Capital, Preference, 5%…
A: Dividend of each class of shares: Under Condition 1: One year’s dividends are in arrears on…
Q: The balance of Arndt’s retained earnings as of March 31, 2020, should be
A: Given that: Balance of Retained Earnings = P154,000 Value of additional shares as dividend = 900*18…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 -…
A: Introduction: A journal entry is a monetary transaction record kept in a company's accounting…
Q: Coronado Company reported the following amounts in the stockholders’ equity section of its December…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Hamad Town Company had the following balances in the stockholders' equity accounts at Dec. 31, 2020:…
A: Share capital: share capital means capital raised by the issue of shares. the amount invested by the…
Q: Splish Company reported the following amounts in the stockholders’ equity section of its December…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Step by step
Solved in 4 steps
- 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. 3,370,000Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
- Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.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.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000