cludes the following balances: Common Stock, $41000; Paid-in Capital in Excess of Par, $64200; Treasury Stock, $5500; Preferred Stock, $30400. Capital stock totals $105200.
Q: Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the…
A: Introduction:- 65% of the purchase is paid in the month of purchase, 30% in the month after…
Q: Choose the correct answer: Which of the following is equal to the SFP? A. Unadjusted trial…
A: Abbreviations used in the Question : SFP means Statement of Financial Position of Balance Sheet SCI…
Q: In 2021, DFS Medical Supply collected rent revenue for 2022 tenant occupancy. For income tax…
A: Journal refers to the book of the business organization which records all the business transactions…
Q: In 2021. ABC Corp. borrowed money from the bank in the amount of Php 1 Million with an interest rate…
A: Interest is the income or expense on a loan given or borrowed by an entity. It is essentially the…
Q: Donahue Oil has an account titled Oil and Gas Properties. Donahue paid $6,700,000 for oil reserves…
A: Depletion expense is the reduction in the value of asset due to its use. Depletion is a…
Q: et Income (in millions) ? ? Weighted Average Shares Outstanding (in millions) Basic Number…
A: EPS means earnings per share which represents the amount of money received by each shareholders out…
Q: Problem 4: American Corporation Truck Production Company has purchased a truck for $85,000. The…
A: Depreciation Expenses There are different method which are used to calculate the depreciation cost…
Q: 1. A Company was incorporated on January 1, 2003, with the following authorized capitalization:…
A: Authorized share capital means the amount which the company can legally issued. Total contributed…
Q: Which is FALSE? S1 – All income is taxable. S2 – All exclusions from gross income are exempted.…
A: S1 – All income is taxable.: this statement is incorrect as all income excluding the exempted income…
Q: 48. Nicanor is a civil engineer. His reported total gross receipts in 2020 amounted to Php…
A: Here discuss about the details of total income tax payable while opted of 40% deduction criteria in…
Q: G is a capitalist partner. He was able to contribute P500,000.00 for the benefit of the partnership.…
A: Partnership is an agreement between two or more persons who carries their business operations…
Q: Rachel, Monica and Phoebe are partners with capital balances of P896,000, P3,120,000 and 3,160,(…
A: Partnership refers to the form of business under which two or more persons are ready to run the…
Q: SG Company is bankrupt and has undergone corporate liquidation. Presented below is its statement of…
A:
Q: Gina Electronics Inc. has long-term bonds with a face value of $2M, the coupon rate on the bonds is…
A: Weighted average cost of capital is total cost of raising funds for the business and it includes…
Q: Compute NET Profit margin ratio Income Statement (SM) 2019 Revenue 372 12 Depreciation Other…
A: Lets understand the basics. Net profit margin ratio indicates the net income generated in compare to…
Q: In 2021, a company issued 6% bonds with a maturity value of P40,000, together with 1,000 shares of…
A: Increase in share premium as a result of this transaction will be Amount allocated to ordinary…
Q: poration has the fo
A: The cost of goods manufactured is the cost assigned to produced units in an accounting period. The…
Q: Which of the following items has no effect on the Accumulated Adjustments Account (AAA) of an S…
A: Cost of goods sold- The cost of goods sold is the cost of producing the goods that a business sells.…
Q: 1. On November 1, 2020, an entity acquired on account goods from a foreign supplier at a cost of…
A: Carrying amount of monetary asset means carrying amount of accounts receivable.
Q: Chris Crone (age 67) is married, but will file as married separate. Assume that Chris has one child,…
A: Taxable income is the basic income that is subject to taxation. It contains some or all elements of…
Q: A company had 100,000 shares of common stock outstanding in January 2003. The company distributed a…
A: Common stock outstand as of December 31 2003 will be common stock outstanding in January 2003 plus…
Q: Determine variable and fixed cost components using the high-low method. BE2.8 (LO 3) Westerville…
A: High low method: Highest activity = 40,000 units Lowest activity = 18,000 units
Q: distribution Ann receives cash of S s was $1,800, and land in which the part est was $25,000. r loss…
A: Given as, Received amount= $3,000, Inventory Partnership basis= $1,800, Land partnership basis=…
Q: On January 1, 2018, RRR Partnership entered into liquidation. The partners' capital balances on this…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Bonneau Corporation declares a cash dividend of $100,000 on July 1 for any shareholder on record on…
A: Dividends are the part or share of profits which is being distributed to the shareholders. It can be…
Q: Why the prospect theory is important
A: Introduction:- Prospect theory is very important because it elaborates how we understand and value…
Q: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…
A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…
Q: D4
A: Most of the company pays dividends at fixed rate of its earnings each year. this fixed rate of…
Q: PROBLEM 14–25 Net Present Value Analysis of a Lease or Buy Decision LÔ14- The Riteway Ad Agency…
A: Solution: In order to determine, whether to go for purchase alternative or lease alternative, we…
Q: Hours Wait time 19.5 Process time 2.3 Inspection time 1.3 Move time 3.2 Queue time 10.3 The delivery…
A: The total amount of time from when an order is being received from the customer to when the…
Q: Cool Globe Inc. entered into two transactions, as follows: Purchased equipment paying $20,000 at…
A: Journal entry means the writing of the transaction in the books of accounts and this will be helpful…
Q: B promised that he will deliver a house and lot for the partnership to use for its manufacturing…
A: The partnership act defines a relationship between two or more persons who agrees to share profits…
Q: S1: Taxation and power of Eminent Domain may be exercised simultaneously. S2: Taxation and Police…
A: Taxes are one of the liability or obligation which needs to be paid out by the business or…
Q: Additional Information: · The 10% bank note payable is Issued on January 1, 2025, payable…
A:
Q: Assembly Department at the end of the year just ended
A: Nafth Company has an Equipment Services Department that performs all needed maintenance work on the…
Q: 55. On March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for…
A:
Q: A non-individual taxpayer made available the following financial information covering TY 2021:…
A: The income Tax Rate on the Domestic Companies is 30% which is applicable on the Net Business Income…
Q: If treasury shares are subsequently retired and the cost of the treasury shares exceeds the par…
A: Solution: When treasury shares subsequently retired where cost exceeds par value, then difference is…
Q: Read the case study below and answer the questions that follow. Hendry Limited produces a…
A: Using absorption Costing, both fixed and variable manufacturing costs are included in the product…
Q: essa Inc. has a project that costs $800,000. It has a 70% chance of a $1,500,000 payoff and a 30%…
A: Expected Profit or loss from the project can be calculated by subtracting the costs of the project…
Q: On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had…
A: Answer:- Definition of meaning:- Goodwill is a kind of an intangible asset generally related with…
Q: Net unrealized loss on foreign currency transaction 35,000 Net unrealized gain on translation…
A: Restricted earnings are amounts set aside to meet specific purpose but still forms part of…
Q: explain .After documenting internal control in an audit engagement, the auditor may perform tests on…
A: The following tests that the auditor might perform are presented in the order of the evidence that…
Q: Question 3 The following information was obtained from the financial records of Narrowbeach Ltd for…
A: An income statement refers to a financial statement that portrays the income earned and expenses…
Q: On March 1, 2021, BabyM company issued a four-year, P3,000,000 face value, 11% term bonds for…
A: Bonds issued at Premium: When a bond is issued at a premium, that means that the bond is sold for an…
Q: Ellie Inc., a calendar year C corporation, wants to make a gift to a charity that is deductible on…
A: Form 1120 Line 19. Charitable Contributions Enter contributions or gifts actually paid within the…
Q: If the corporation is considered as de facto, who can question its existence? Board of Directors…
A: When corporation is considered as de facto, it means that corporation exist even though it may not…
Q: On January 1, 2017, the Ilocos Norte Corporation purchased the business of its competitor in a…
A: The following calculation are needed to answer the given MCQ's: Asset Cost Life of Asset…
Q: The following information pertains to Havana Corporation's defined benefit pension plart 2021 2022…
A:
Q: Explain briefly how with examples
A:
The
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.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.
- 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.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. 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.
- 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.Anoka 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?Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
- Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.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.