During 2016, the Nicklaus Corporation participated in three treasury stock transactions: a. On June 30, 2016, the corporation reacquires 200,000 shares for the treasury at a price of $12 per share. b. On July 31, 2016, 50,000 treasury shares are reissued at $15 per share. c. On September 30, 2016, 50,000 treasury shares are reissued at $10 per share. Required: 1. Prepare journal entries to record these transactions. 2. Prepare the Nicklaus Corporation shareholders’ equity section as it would appear in a balance sheet prepared at September 30, 2016. (Assume net income for the second and third quarter was $3,000,000.)
Q: On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: The Banco de Plata was organized on April1, 2018 and is authorized to issue 250,000 shares of…
A: Share capital is the capital raised by the issue of shares. It is the amount invested by the…
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1, it…
A: Common shares are issued by the company to fulfil its capital requirements. The common shareholders…
Q: Macanas Company had 125,000 shares issued as of January 1, 2018, which includes 25,000 treasury…
A: Answer) Calculation of Number of shares issued Number of shares issued = Total number of shares…
Q: In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had…
A:
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: In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of…
A: 1. Prepare journal entries to record the given transactions.Record the issuance of common shares.
Q: In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had…
A:
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,850,000 authorized shares…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Use the following information for the Exercises below. [The following information applies to the…
A: Preferred shareholders gets priority over common shareholders for dividend payment and capital…
Q: On March 15, 2018, Bank of America issued 94,000 shares of 5.875% Fixed-to-Floating Rate…
A: Dividend is the term which is described as the distribution of the earnings of the firm to its…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: ABC Company initially issued 200,000 shares of €1 par value stock for €1,000,000 in 2014. In 2015,…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Barbie Co. was organized on January 2, 2015, with 500,000 authorized shares of P10 par value common…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…
A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…
Q: During 2018, the Nicklaus Corporation participated in three treasury stock transactions:a. On June…
A: Date Accounts title and explanation Debit ($) Credit ($) 30-Jun-18 Treasury stock (200,000 x 12)…
Q: SHOW THE JOURNAL ENTRY OF A AND B! Your inquiries and investigation revealed the following…
A: Treasury stock are the stock which are re-purchased by the company to reissue in future
Q: On January 1, 2016, Tonge Industries had outstanding 440,000 common shares (par $l) that originally…
A:
Q: In late 2017, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of…
A: Stockholders' equity: Stockholders' equity means the remaining net assets available to shareholders.…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…
A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…
Q: Sarasota Corp. was organized on January 1, 2017. It is authorized to issue 20,800 shares of 5%, $52…
A: Stock account is always credited with the par value of the shares and value in excess of par will be…
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: On January 2, 2014, Sunland Corporation issued 29700 shares of 5% cumulative preferred stock at $100…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: The Banco de Plata was organized on April1, 2018 and is authorized to issue 250,000 shares of…
A: Authorized capital is the amount that is stated in the capital clause of the memorandum of…
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: SHOW THE JOURNAL ENTRY FOR EACH TRANSACTIONS Your inquiries and investigation revealed the…
A: * As per the bartleby guidelines in case of interlinked question, answer first 3 only Treasury…
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: Early in 2008, Robbinsville Press was organized with authorization to issue 100,000 shares of$100…
A: Statement of Stockholders' Equity shows the net change in equity section of balance sheet, which is…
Q: In 2018, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: Coy, Inc. initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2009. In 3. 2010,…
A: The treasury stock includes the own shares of the company that are repurchased from the…
Q: In 2016, Western Transport Company entered into the treasury stock transactions described below. In…
A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…
Q: Data Controls Corporation had 250,000 shares of common stock outstanding at the end of 2017. During…
A: The number of shares in a corporation computed after accounting for variations in the share capital…
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: Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and…
A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…
Q: Use the following information for the Exercises below. [The following information applies to the…
A: Dividend: It is the amount of income earned by the stockholders in return for their investment. It…
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: 1. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance…
A: Given: The transactions of Nicklaus corporation during the year 2021 is given.
Q: n January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. uring the year,…
A: The shares issued includes the treasury stock shares but shares outstanding are decreased with the…
Q: Vllarama Corporation was organized on Jan. 1, 2017. It is authorized to issue 20,000 shares of 6%,…
A: Share capital is most important section of balance sheet.
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…
During 2016, the Nicklaus Corporation participated in three
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- 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.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)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.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.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.
- 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.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?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.
- 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.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.St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and 5,000,000 shares of $1 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
