Cebedo Corp. Issued 100,000 ordinary shares. Of these, 5,000 were held as treasury stock at December 31, 2017. During 2018, transactions involving Cebedo's ordinary shares were as follows: |May 3 | Aug 6 Nov 18 A 2-for-1 share split took effect 1,000 shares of treasury were sold | 10,000 shares of previously unissued share were sold At December 31, 2018 , how many ordinary shares are issued and outstanding? Shares Issued A. 220,000 В. 220,000 С. 222.000 Shares Outstanding 212,000 216,000 214,000 218,000 D. 222,000
Q: Cool Company has decided to take their company public on January 1, 2014. Cool company had 1,000…
A: Re-issuance of Treasury stock : As treasury stock in the balance sheet represents the…
Q: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Cambridge Corp. has a single class of shares. As its year ended December 31, 2015, the company had…
A: The journal entry can be defined as the process of recording business transactions in the accounting…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: A journal entry is made to record the financial transaction in the books of accounts. T-account: The…
Q: On January 1, 2018 Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: ABC Co. is authorized to issue 5,000,000, $6 par ordinary shares and 100,000, $50 par 9% cumulative…
A: 1. Preference dividend in arrears : $1,000,000 x 0.09 = $90,000 to be satisfied by reissuing 10,000…
Q: Miami Heat Inc. began operations in January2017, and reported the following results for each of its…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary…
A: A cumulative preferred stock implies that a preferred stockholder is entitled to receive dividends…
Q: On December 31, 2017, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of…
A: Earnings per share refers to the earnings available for the each share of a shareholder. It is…
Q: D'Ouville Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of $10 par…
A:
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: On January 1, 2018, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares…
A: In a corporation, the capital fund is raised by diluting the ownership title of the business in the…
Q: Olivia Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of P10 par…
A:
Q: Jay-ar Corp. issued 20,000 shares of P5 par common stock at P10 per share. On December 31, 2017,…
A: when we prepare the balance sheet of the company then generally there are two category equity and…
Q: Cambridge Corp. has a single class of shares. As its year ended December 31, 2015, the company had…
A: The journal entry is used to keep and make records of the business transaction and these…
Q: Paris Co. has a December 31 year-end date. Data for 2021 shows: • There were 60,000, $3, cumulative…
A: Number of common shares Common shares as on January 1 370000 Shares issued 60000 Less; shares…
Q: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: The stockholders’ equity section of the entities’ balance sheet discloses its position relating to…
Q: Sherry, Inc. had 140,000 shares of $5 par value common stock issued and outstanding as of December…
A: No. of shares issued under stock dividend = Number of outstanding shares x 40% = 140,000 shares x…
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: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
A: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
Q: On January 1, 2018, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares…
A: The company had issued shares at $8 and provided a premium of $4 to the shareholders. As no…
Q: Loxery Ltd initially issued 300,000 of OMR1 par value common stock for OMR 1,000,000 in 2017. In…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: Early in 2009, Feller Corporation was formed with authorization to issue 50,000 shares of $1…
A: Statement of cash flows: All cash In and out transactions are record in cash flow statement. It…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…
A: The purchase of own shares is known as treasury stock.
Q: During 2016, Goodfellow has the following transactions involving its common and preferred stock.…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
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: Cool Company has decided to take their company public on January 1, 2014. Cool company had 1,000…
A: A company may reacquired its own shares through buy back. After reacquisition these shares are known…
Q: On October 1, 2016, Nicklaus Corporation receives permission to replace its $1 par value common…
A: Requirement 1:Prepare journal entries to record the declaration and payment of these stock and cash…
Q: On December 10, 2010, Smitty Corporation reacquired2,000 shares of its own $5 par value common stock…
A: At the time of reacquisition of 2,000 shares of its own $5 par value common stock at a priceof $60…
Q: On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%,…
A: SOLUTION- Given information is: Net Income = $21,00,000 Dividend to preference shareholders =…
Q: Dearth Company issued 100,000 ordinary shares. Of these, 5,000 shares were held as treasury on…
A: Ordinary shares are the shares issued to ordinary shareholders by the company. Whereas, treasury…
Q: On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Given information is: Net Income = $21,00,000 Dividend to preference shareholders = $75,000
Q: Olivia Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of P10 par…
A: Stockholders' equity is the excess amount of assets over the liabilities. It includes common stock,…
Q: Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000…
A: Equity share capital refers capital which is raised by a corporation by offering shares.
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50…
A: Dividend arrears are paid for cumulative preferred stock. Arrears in Year 1 = 20,000*$50*6% Arrears…
Q: On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 24,000…
A: Answer- Part 1 - Computation of Basic Earnings per share- Income after 7% dividend on cumulative…
Q: f the 1,000 repurchased treasury shares (from the June 20, 2019 transaction) for $15 per share.…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: Glen Tay Inc. had issued 24,000 shares of its no-par common shares on April 1, 2017 for property…
A: Journal entry is a process of recording business transactions into books of accounts initially. This…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…
A: Journal Entry - It is record of every business transaction whether it economic or non economic for a…
Q: Whispering Ltd. began its latest fiscal year on January 1, 2020, with 12,000 common shares…
A: The weighted average common shares are the common equity shares outstanding at the end of the year…
Q: Sunrise Corporation, a food company, was established on January 2, 2018. It is authorized to issue…
A: The shareholders' equity represents the equity that belongs to the shareholders with inclusion of…
Q: Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017,…
A: The weighted average number of share outstanding are calculated by multiplying the number of months…
Q: Early 2014, H industries was forms with authorization to issue 250,000 share of $10 par value common…
A: Stock holder’s equity: This section of the balance sheet shows the total balance in the stock…
Q: Cheyenne Corp. was organized on January 1, 2017. It is authorized to issue 21,000 shares of 7%, $53…
A: The journal entries for the transactions are as follows :
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 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.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?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)
- 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.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.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.
- 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.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
- 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. 190,000Chen 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. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.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.