During 2021, your firm reported net income of $600 and paid a $120 cash dividend. The Dec 31, 2020 balance sheet reported the following items: common stock $500, capital surplus $750, retained earning $900. What is the value of the retained earnings account for the Dec 31, 2021 balance sheet?
Q: Vaughn Manufacturing uses flexible budgets. At normal capacity of 15000 units, budgeted…
A: Solution: Budgeted variable overhead = $90,000 Budgeted nos of units = 15000 units Budgeted variable…
Q: Company expects direct $4 per unit for 100000 hits (a total of $400000 of direct materials costs).…
A: The standard direct materials cost is calculated in per unit cost form and budgeted direct materials…
Q: Willow Corp. (a C corporation) reported taxable income before the net operating loss deduction (NOL)…
A: Taxable Income: $100,000 NOL Carryover: $90,000 Amount of tax in 2020: ? Amount of NOL carryover in…
Q: Requirement 2. Journalize in summary form the requisition of direct materials and the assignment of…
A: Under job order costing journal entries required for labor, material, overhead. At the end of…
Q: During the current taxation year, KT Ltd., a Canadian-controlled private corporation located in Nova…
A:
Q: Lori Ramos operates a small retail kiosk in a mall located in Vancouver, British Columbia. She has…
A: Quick Method :— Under the Quick method, you still charge the standard HST rate 5% on any taxable…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Accounts…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Q: Callaho Inc. completed the following petty cash transactions during May and June in 2014 May 1: Drew…
A: Petty cash :— It is the amount of fund used for the payment of small day to day expenditures.…
Q: Diane's Designs has two classes of stock authorized 8%, $10 par value preferred and $1 par value…
A: Journal entries are reported it the books to keep a record of the financial transactions of the…
Q: Why is the identification of favorable and unfavorable variances so important to a company? How can…
A: Introduction: Every business creates Standard Costs for a range of goods and services. It uses these…
Q: Accurate Company charges its new franchisees an initial franchise fee of P2,500,000. Of this amount,…
A: For the purpose of revenue recognition, the accountants or professional auditors follows their…
Q: The Alice Brittain Estate, valued at $14.8 million, includes the following assets: A joint and last…
A: Publicly held stock refers to the company where ownership is organized through the shares of stock…
Q: What year did the investigation start on Wirecard? When was the investigation completed?
A: Investigation: An investigation is a comprehensive search for facts, particularly those that are…
Q: Swifty has a standard of 1.2 pounds of materials per unit, at $4 per pound. In producing 3000 units,…
A: Total Materials Variance: Difference between the Standard material costs and the actual material…
Q: Required: 1. Calculate depreciation for each year of the asset's eight-year life. 2. Are changes in…
A: Sometimes Business Entities change the method of depreciation. This could be due to change in…
Q: When a bond is held with the objective of collecting principal and interest payments over the life…
A: As per IFRS 9, Financial instruments Standard The Financial assets can be classified at Amortized…
Q: QUESTION 15 In an EOQ problem, the optimal number of units ordered at a time 319 The ordering cost…
A: The full name of EOQ is economic order quantity. Its companies, maximum order in quantity, on the…
Q: Q3 B : SHARIAH SUBJECT; SHARIAH AUDIT AND COMPLIANCE PLEASE ANSWER ASAP
A: An issue has been given in the question, the main issue is that The Shariah Government Policy is…
Q: The financial statements of Heatwave Athletic Wear include the following selected data ($ in…
A: Return on equity can be calculated by dividing the net income by average stockholders' equity. The…
Q: Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of…
A: The productivity ratio can be calculated by dividing the number of phones manufactured by total…
Q: Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal,…
A: The cash receipts journal follows the basic rule of accounting, which states that you should debit…
Q: Company Y acquired The Seoul Post in February 2021 for $315 million. Suppose the yearly margin per…
A: The question is asking how many new readers should it acquire to raise the CLV to $315 million. CLV…
Q: The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always…
A: Here incurred the details of compare with the details of purchase alternatives and the lease…
Q: Please show work on how to do part 5, 6a, 6b. Thank you.
A: Solution 4: Computation of Profitability Index Particulars Product A Product B Net present…
Q: Crestview Estates purchased a tractor on January 1, 2018, for $65,000. The tractor's useful life is…
A: Depreciation: Depreciation means the reduction in an asset's value over the asset's life due to the…
Q: Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,300…
A: Direct labour costs are those labour costs which are incurred directly for production of goods.…
Q: The following data are taken from the financial statements of Sheffield Company. Accounts receivable…
A: As per the given information: 20222021Accounts receivable (net), end of year$555,000$470,000Net…
Q: The following information pertains to Alpha Computing at the end of 2018: Assets Liabilities Net…
A: The retained earnings balance can be calculated by adding net income and deducting the cash…
Q: he following accounts and balances are taken from the books of Bosox Company which…
A: Cost of goods sold is the actual cost of goods that is being sold to the customers. Gross profit is…
Q: What is the firm's net income in the current year? (5547.00?) What is the firm's dividend…
A: Profits earned by the Companies is transferred to the Retained Earning Account. Retained Earnings…
Q: Required: a)Compute the total capital allowances claimable by Ibu Mertuaku Berhad for the above…
A: Capital Allowance :— The amount of Capital Investment Cost or the Cost which is Directed by the…
Q: Required: 1. Prepare Comparative Statement 2017, 2016 & 2015 (Increase, Decrease) 2. Prepare…
A: Comparative statement is a form of analysis under which we compare the financial figures of the…
Q: On November 3, FN Trading sold merchandise for P200,000 less 10-5 on terms 3/10 2/20 n/30. Two days…
A: Discount - A discount is an amount or percentage that is reduced or subtracted from the actual…
Q: A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax…
A: Introduction: Dividends are subject to double taxation; they are taxed both in the hands of the…
Q: Kramer’s Company gathered the following reconciling information in preparing its October bank…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: At the beginning of the year a sole proprietorship had liabilities of 100k and owners equity of 96k.…
A: Asset :— Assets is Something which Containing economic Value & Future Value. It is the Part of…
Q: Total equity 145k at the beginning of the year, 210k in revenues 165k in expenses for the year.…
A: Since, Basic accounting equation is Total assets = Total liabilities + Total equity
Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $118,000, allowance…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect…
A: Introduction: Journal entry is used to record a business transaction in the accounting records of a…
Q: How much is the Continuing Franchise Fee Revenue to be recognized in 2021?
A: Given in the question: Royalty 5% Franchise Outlet opened May 1, 2021 Average…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Req-1 Calculation of unit product cost under variable costing: Direct Materials $7.00…
Q: A company determined that the expected unit production cost is $40. On June 1, there were 83000…
A: Introduction:- Cost of goods produced is the cost allocated to produced units during an accounting…
Q: How about the cost of inventory held by the consignee
A: Cost of inventory includes purchase cost of inventory, it's conversation cost and any other expenses…
Q: Given the following, the only item that will generally be included in relevant cost analysis is:…
A: Introduction: The phrase "relevant cost" in managerial accounting refers to avoidable costs that…
Q: In a government’s comprehensive annual financial report, proprietary fund types are included in…
A: A set of related companies' activities are compiled into a single document via the combined…
Q: (a) Following are the partial balance sheet and some assumptions for Kiri-Kanan Company for 2021.…
A: Current Ratio :— It is the ratio between current assets and current liabilities. Inventory…
Q: How much is the defined benefit cost for 2022?
A: As per IAS 19 the entity should recognize the expenses to be paid to employee in future due to the…
Q: How much withholding tax on compensation will Near Eastern University. withhold on the salary of…
A: The amount of tax that is deducted by an organization and has to be paid to the tax authority is…
Q: Fixed manufacturing costs Variable manufacturing costs $36000 pe $18.00 pe foot Crane installed…
A: Answer : Calculate Budgeted total manufacturing cost for 40,000 linear feet of block : Given : Fixed…
Q: The following information pertaining to X Co.'s manufacturing operations: Inventories March 1, 2021…
A: The total cost of a product is calculated and it comprises various components which are required to…
During 2021, your firm reported net income of $600 and paid a $120 cash dividend. The Dec 31, 2020
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.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.
- Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000Using the following Company W information, prepare a Retained Earnings Statement. Retained earnings balance January 1, 2019, $43,500 Net income for year 2019, $55,289 Dividends declared and paid for year 2019, $18,000Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- 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.)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?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.
- 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.Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.