Elston Limited had the following equity accounts on January 1, 2020: Share Capital—Ordinary ($5 par) $400,000, Share Premium—Ordinary $200,000, and Retained Earnings $100,000. In 2020, the company had the following treasury share transactions. Mar.  1 Purchased 5,000 shares at $9 per share. June  1 Sold 500 shares at $12 per share. Sept. 1 Sold 2,500 shares at $10 per share. Dec.  1 Sold 1,000 shares at $6 per share. Elston uses the cost method of accounting for treasury shares. In 2020, the company reported net income of $34,000. Instructions: a. Journalize the treasury share transactions, and prepare the closing entry at December 31, 2020, for net income. b. Post the journal related to these accounts: (1) Share Premium—Treasury, (2) Treasury Shares, and (3) Retained Earnings. Ese a formal form of General Ledger. c. Prepare the equity section for Elston Limited at December 31, 2020.

Q: Bernabe Company reported the following equity accounts in January 1, 2020: Share Capital, P20 par…

A: Formula: Share premium = Beginning share premium - Shares reacquired value

Q: Pharoah Company had the following stockholders' equity as of January 1, 2020. Common stock, $5 par…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Loving Company provided the following information on December 31, 2020: Share premium - 9,000,000;…

A: Total share holder equity means the amount which belongs to the shareholder of the company. It…

Q: Marigold Inc. had net income for the current year ending December 31, 2020 of $872,880. During the…

A: Earnings per share refers to the profit earned during the period that is attributable to each common…

Q: The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital Preference…

A: The purpose of making the Balance Sheet or the Statement of Financial Position is to present the…

Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…

A: The treasury share are the shares that are repurchased by the company fron its own issued shares.

Q: Stan statement of financial position shows total shareholders' equity of P3,150,000 as of December…

A: Solution: Outstanding shares = Issued shares - shares in treasury = 52000 - 2000 = 50000 shares

Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…

A: You have posted more than one unrelated questions, so as per our policy only first question is…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: Dividend: It is the distribution of profits  to its shareholders  when a corporation makes profit .

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: SOLUTION-     NOTE=  DIVIDEND ARREARS OF 2 YEARS DOES NOT EFFECT RETAINED EARNING OF THIS YEAR…

Q: Using the following, how many shares were outstanding? * On January 1, 2021, the statement of…

A: The maximum number of shares which can be issued by a company is referred to as the Authorized…

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: Shareholders' equity is the sum total of all the money which belongs to the owners of a company. It…

Q: Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The total shareholders' equity on Decembe

A: Given that: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000; Treasury…

Q: ABS Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…

A: First, calculate the diluted effect on stocks: Stock option dilluted effect=Share option…

Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…

A:

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: No. of shares issued from donated shares = No. of donated shares  x 1/2 = 20000 shares x 1/2 =…

Q: Red Hat Company began operations in January 2018 and reported the following results of operations…

A: Book value per common stock = (Total stockholder's equity-(liquidation value of preferred stock+…

Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…

A: Earnings per share = (Net income - Preferred dividend) /  weighted-average number of shares…

Q: Earnhart Corporation has outstanding 3,000,000 shares of common stock with a par value of $10 each.…

A: a. Prepare the journal entry to record the declaration and payment of the cash dividend.

Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…

A: Share premium from Jan. 12 transaction = (Issue value per share - par value per share) x no. of…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: SOLUTION-   CUMULATIVE PREFERENCE SHARES  ARE REGULAR PREFERENCE SHARES WITH ONE ADDITIONAL BENEFIT.

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: No. of shares issued from donated shares = No. of donated shares  x 1/2 = 20000 shares x 1/2 =…

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: 1) The total amount of dividends on preference and ordinary shares. 2) The Total shareholders’…

Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…

A: The retained earnings are the balance of the net income retained for future requirement such as…

Q: On January 1, 2020, the stockholders’ equity section of Skysong, Inc. shows common stock ($6 par…

A: We know that treasury stock is the stock which is purchase by the company from open market, it also…

Q: The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its…

A: Treasury shares are the shares of the own company that are repurchased from the market for resale or…

Q: Sheffield Corporation had the following stockholders’ equity accounts on January 1, 2020: Common…

A: Treasury stocks are the stocks which the organization has bought back from the shareholders  Under…

Q: The JHONG Corporation had the following balances in its Shareholders' Equity accounts as of December…

A: The treasury shares include the own shares of company purchased from the shareholders of…

Q: What is the weighted-average number of shares outstanding for 2020?

A: Stock Dividends and Stock splits:- When Stock Dividend or stock split occurs, the company needs to…

Q: CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited…

A: The date of declaration is relevant among all Dates for making declaration of dividend and…

Q: The shareholders’ equity section of the statement of financial position of LW Corporation showed the…

A: Bonus issue is free offer of additional shares to existing shareholders.  During 2021, the…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A:

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: 5B. Number of PREFERENCE shares outstanding = No. of shares issued -tresaury shares = 20000 - 4000 =…

Q: basic earnings per share for preference shareholders

A: In respect of cumulative preference shares, dividend is accumulated until paid. Hence, the…

Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…

A: Share premium (opening)=Preference+Ordinary=P 160,000+P 600,000=P 760,000

Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…

A: A share is the division in the capital of the company. A shareholder is entitled to receive division…

Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…

A: A non-participating preferred share, Non-Participating Preference shareholder is only entitled to…

Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…

A: Effect of April 30=Number of shares×Per share value-Par value=1,000×P 25-P20=5,000

Q: The balance of Arndt’s retained earnings as of March 31, 2020, should be

A: Given that: Balance of Retained Earnings = P154,000 Value of additional shares as dividend = 900*18…

Q: What is the weighted-average number of shares outstanding for 2020? *

A: Stock Dividends and Stock splits:- When Stock Dividend or stock split occurs, the company needs to…

Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…

A: Formula: Share capital = Number of shares issued x Issue price per share.

Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference…

A: 1. Share Premium - Share Premium is the amount received by the company over and above the par value…

Q: On January 1, 2020, Arnold Inc. has the following account balances: ·         Share capital, P10…

A: Treasury shares are those shares which are repurchased or reacquired by the business from its…

Q: The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…

A: Stock dividend is declared when the company wants to enhance its shareholders' wealth or to praise…

Q: The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts…

A: Journal Entries   Date Particulars Debit Credit   Mar-03 Investment in Leaseco International…

Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…

A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…

Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…

A: The basic earnings per share is calculated as net income available to common shareholders divided by…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.