Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record the declaration of this dividend is: Multiple Choice No entry is needed. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000. Debit Retained Earnings $36.000
Q: An example of a Type I subsequent event would be A. a sudden change in senior management after…
A: The objective of the question is to identify which of the given options is an example of a Type I…
Q: Exeter Division of Wetherby Labs acquired an asset with a cost of $800,000 and a four-year life. The…
A: In the historical cost approach, the Return on Investment (ROI) for each year is calculated based on…
Q: Which of the following accurately describes taxation of cryptocurrency transactions? a)…
A: The question is asking to identify the correct statement regarding the taxation of cryptocurrency…
Q: Kristen Lu purchased a used automobile for $13,650 at the beginning of last year and incurred the…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on…
A: "Bonds payable" is a liability account that appears on a company's balance sheet. It represents the…
Q: Howard Bannister Company budgets the following per-unit costs for the upcoming year. Direct Material…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: Cracks of Dawns, a clothing resale store, employs one salesperson, Dia Hollace. Hollace's…
A: Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…
Q: Fashion trends are increasingly driven by runway fashions rather than consumer behavior. True False
A: Runway fashion refers to the clothing and accessories that are showcased by models on a runway or…
Q: On January 1, Cullumber Service Inc. issued $5304000, 9% bonds for $4975000. The market rate of…
A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…
Q: Please help me solve the requirements
A: Details are provided below.Explanation:
Q: On January 1, 2025, John Paul Jones Corp. purchased 30% of Sky Tech Inc. for $45 million. This…
A: Investment means an asset purchased in expectation of earning a return on such investment in future…
Q: The terms of an invoice are 3/10, n/30 E.O.M. The invoice date is April 10. The last date on which…
A: Purchase discount is the amount of deduction allowed by seller on the amount of purchases made by…
Q: The purpose of an audit is to A. provide financial statement users with an opinion by an…
A: The purpose of an audit is to provide an independent assessment of the fairness and accuracy of the…
Q: Fields Company presented the following data for the current year: Net sales revenue $275,000 Cost of…
A: Profit margin is one of the important profitability ratios computed by the company to assess its…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The cash budget is part of the master budget and it shows estimated; cash inflow and cash outflow…
Q: Clonex Labs, Incorporated, uses the weighted-average method in its process costing system. The…
A: The conversion cost refers to the cost incurred in converting raw materials into finished goods and…
Q: Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. $…
A: A multiple-step income statement presents the items of income and expenses in operating and…
Q: a. Times interest earned ratio b. Earnings per share on common stock c. Price-earnings ratio 000…
A: The following formulas used as follows under:-Times interest earned ratio = Income before interest…
Q: as a whole (credit balances indicated by parentheses Consolidated Amarillo $ (716,000) 416,000…
A: Basic earning Per Share :Basic Earnings Per Share (EPS) is a financial metric that represents the…
Q: Estrada Corporation produced 205,000 watches that it sold for $16 each. The company determined that…
A: The gross margin is calculated as the difference between the sales and cost of goods sold. The…
Q: A-5
A: Based on the provided information, to calculate the present value (PV) of the loan, we utilize the…
Q: Prepare journal entries for the following transactions. Aug. 4 Sold merchandise on account to S.…
A: Journal Entry: It can be defined as recording or accounting the financial events or transactions of…
Q: Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: cash flows. More specifically, record the amounts of the events into the model. Also, in the…
A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…
Q: On January 1, 2025, Artic Inc. had the following balance sheet: Cash Assets Debt investments…
A: Available-for-Sale Debt Securities: These are investments in debt securities that a company holds…
Q: Prepare the journal entries on December 31, 2024, May 11, 2025, and June 12, 2025. (L
A: The journal entries are prepared to record the transactions on regular basis. The allowance for…
Q: as $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning ecently for…
A: Lease is the agreement between lessee and lessor. Lessor gives his asset to lessee for use. Lessee…
Q: Malkind Hardware is adding a new product line that will require an investment of $1,476,000.…
A: Accounting rate of return (ARR) may be an equation that reflects the percentage rate of return…
Q: On January 1, 2024, Nath-Langstrom Services, Incorporated, a computer software training firm, leased…
A: A lease is a legal contract between a landlord (lessor) and a tenant (lessee) that grants the lessee…
Q: The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and…
A: Meaning of lease : An agreement of contract that is prepared to transfer the right to use the…
Q: You have estimated that the present value of all future free cash flows of Venice Surf Co. to be…
A: The objective of the question is to calculate the value of each share of Venice Surf Co. using the…
Q: Lee is single and has two daughters, Ava and Alice. He makes $155, 600 in gross income from his job…
A: Itemized deductions are specific expenses that taxpayers in the United States can subtract from…
Q: Find the stock turnover at cost and at retail. Average Inventory at Cost $22,310 The stock turnover…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: Golden Hawks Inc. reported the following amounts on its statement of financial position at December…
A: The retained earnings for Golden Hawks Inc. are 312000 as calculated below. Hope it helps!!…
Q: Nadia and Adam are sole traders who run their own separate businesses. On 31 December 2019, their…
A: Partnership : Arrangement between two or more people whereby they agree to manage business…
Q: is added evenly throughout each process. Direct materials are added at the beginning of the first…
A: The conversion cost is the cost which is incurred in converting the raw materials into finished…
Q: a. What is the Comers' tax liability for 2023 if they report the following capital gains and losses…
A: Taxable income is the amount of the person's income that is taxed after all the deductions and…
Q: Production costs chargeable to the Finishing Department in June in Hollins Company are materials…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just…
A: Manufacturing overhead is the indirect costs that are incurred during the manufacturing process,…
Q: A-1
A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student,Part 1:…
Q: Don't give answer in image
A: Under the completed contract method, the revenue and expenses are recognized in the year in which…
Q: Which of the following accurately describes the tax implications of investing in real estate and…
A: Real estate refers to land and any structures or resources on it.Real estate can be bought, sold,…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: The cost of goods sold under the perpetual inventory system is that the inventory cost of each sales…
Q: At the beginning of the year, the credit balance in the Allowance for Doubtful Accounts for…
A: a. To compute the ending balance in the Allowance for Doubtful Accounts at December 31, we need to…
Q: ration's releva activity Direct materials. Direct labor Variable manufacturing overhead Fixed…
A: Lets understand the basics.Costs are mainly divided into,(1) Variable costs(2) Fixed costsVariable…
Q: suming that the machinery was the only tangible property placed in service during the year, compute…
A: The Modified Accelerated Cost Recovery System (MACRS) is a methodology for tax depreciation in the…
Q: Required information [The following information applies to the questions displayed below.]…
A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…
Q: Formula: Add, Subtract; Cell Referencing Using Excel to Determine Income Tax Effects PROBLEM At…
A:
Q: The Accounts Receivable balance and Allowance for Bad Debts for Turning Leaves Furniture Restoration…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: In each of the cases below, assume Division X has a product that can be sold either to outside…
A: Transfer price:The price charged for the goods and services transferred among the divisions is…
Step by step
Solved in 3 steps
- 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.Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
- 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.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.
- On April 2, West Company declared a cash dividend of $0.50 per share. There are 50,000 shares outstanding. What is the journal entry that should be recorded?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.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 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.Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?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.