Carla Vista Co.'s balance sheet at December 31.2021, is presented below.Carla Vista Co.Balance SheetDecember 31, 2021$9,230Accounts payableCommon stockCash$14,340Accounts receivable19,70021,700Allowance for doubtful accounts(860)Retained earnings12.230Inventory9,980$43.160$43,160During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.Jan.Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account.1.3Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300).Carla Vista purchased $18,210 of inventory on account.Carla Vista sold for $27,000 on account inventory that cost $16,920.Carla Vista sold inventory that cost $680 to Jack Rice for $90O. Rice charged this amount on his Visa First Bank card. Theservice fee charged Carla Vista by First Bank is 3%.111517Carla Vista collected $23,600 from customers on account.Carla Vista paid $17,630 on accounts payable.Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3.2124Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account.3Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300).8Carla Vista purchased $18.210 of inventory on account.11Carla Vista sold for $27,000 on account inventory that cost $16,920.Carla Vista sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. Theservice fee charged Carla Vista by First Bank is 3%,Carla Vista collected $23,600 from customers on account.151721Carla Vista paid $17,630 on accounts payable.24Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3.27Carla Vista purchased advertising supplies for $1,440 cash.31Carla Vista paid other operating expenses, $3,330.Adjustment data:1.Interest is recorded for the month on the note from January 1.2.Bad debts are expected to be 6% of the January 31, 2022, accounts receivable.A count of advertising supplies on January 31, 2022, reveals that $590 remains unused.The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to3.4.compute the amount; round to whole dollars.)(You may want to set up T-accounts to determine ending balances.)CARLA VISTA CO.Adjusted Trial BalanceJanuary 31, 2022DebitCredit24TotalsPrepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)CARLA VISTA CO.Income StatementFor the Month Ending January 31, 2022 :Sales Revenues27900Cost of Goods Sold17600Gross Profit10300Operating ExpensesService Charge ExpenseOther Operating Expermes3300Bad Debts ExpenseSupplies Expense850Operating Expenses4845Income From Operations5455850Supplies Expense-4845Operating Expenses5455Income From Operations24Interest Reverue5479income Before Income Taxes-1644Income Tax Expense3835Net Income/(Loss)Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to O decimal places, e.g.1,250.)CARLA VISTA CO.Retained Earnings StatementJanuary 31, 2022$Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0decimal places, e.g. 1,250.)CARLA VISTA CO.Balance SheetAssetsLiabilities and Stockholders' EquityLiabilities and Stockholders' Equity

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Carla Vista Co's balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable $9,230 Accounts receivable 19,700 Common stock 21,700 Allowance for doubtful accounts (860) Retained earnings 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.

Carla Vista Co's balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable $9,230 Accounts receivable 19,700 Common stock 21,700 Allowance for doubtful accounts (860) Retained earnings 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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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.
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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.
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Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet: The following stock transactions occurred during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 225,000).
Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
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Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
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