for 5 equity shares. Journalize the information.
Q: homework question 10
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: From the practice on page 10-4 of the VLN, how many of shares of common stock were issued?_____
A: Common stock: Common stock is a part of the total stock held by a corporation which are divided into…
Q: sing the following accounts and balances, prepare the Stockholders' Equity section of the ba mmon…
A: Solution: Stockholder's Equity Paid in Capital: Common stock, $70 par (80000…
Q: Using the following accounts and balances, prepare the “Stockholders’ Equity” section of the balance…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine…
A: Financial Accounting Standards Board (FASB): FASB is the organization which creates, develops, and…
Q: Using the following accounts and balances, prepare the Stockholders' Equity section of the balance…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: Cash dividends are paid based on the number of shares: a. outstanding. b. authorized. c. issued
A: As per IAS 33 Earnings per share standard Earnings per share = Net income available to ordinary…
Q: 8. Homework Chapter 10
A: Common stock refers to the shares of a company which are issued by company to general public for…
Q: Which of the following is ordered from the largest numberof shares to the smallest number of…
A:
Q: A corporation purchases 4,608 shares of its own $7 par common stock for $29 per share, recording it…
A: Whenever a corporation purchases some of its outstanding stock from its shareholders and does not…
Q: 1. Prepare all journal entries 2. Provide the answer to the items below after considering all the…
A: Preference shares are the part of shareholders capital which is the combination of debt and equity…
Q: In additin to the above question: Prepare the company’s Stockholders equity section of the balance…
A: Introduction: Stockholders' equity is the total funds contributed by the shareholders of the company…
Q: Instructions Show the allocation of dividends to each class of shares, assuming the preference share…
A: Dividend -: The Dividend is a diffusion of earnings by a company to its shareholders. When a firm…
Q: How many shares are ISSUED after the above transactions are completed? How many shares are…
A: The Issued shares are those which are issued to the public in large and the outstanding shares are…
Q: We declare a 2 for 1 stock split.
A: Stock split means dividing the existing shares into two or three etc according to company…
Q: Which of the following classifications represents the most shares of common stock?a. Unissued…
A: Unissued shares are those shares which are not issued yet. Issued shares means those shares which…
Q: 1. Determine the year end balance of the Treasury Shares. 2. Determine the year end balance of the…
A: Buy-back of shares means the re-acquisition of the share capital of own company from the capital…
Q: Issued shares of preferred stock at par vith your first name initial In the blank/underline
A: C. issued 50% of authorized shares@ $ 100.00…
Q: following trading investmer Investments (Trac 1,500 ordinary shares of Parl
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Information disclosed in a balance sheet/statement of financial position about shares of common…
A: Introduction: Authorized shares: It means company is authorized to issue number of shares to public.
Q: In 75 words or fewer, explain the difference between stock dividends and stock splits. Include the…
A: Stock dividend: Dividends issued in form of additional shares is called stock dividend. Companies…
Q: . At year-end, how many ordinary shares were issued? 2. At year-end, how many shares are…
A: The treasury shares are the own shares purchased by the company.
Q: In financial markets first time issued shares to be publicly traded in stock market are considered…
A: New stock and bonds are sold under the primary financial market for the first time. It includes the…
Q: Many types of transactions may affect stockholders' equity. Identify the effects of the following…
A: Stocks are the shares in ownership of the company. It represents the capital raised by a corporation…
Q: Prepare all journal entries. After all journal entries are prepared, compute for the ff: Issued…
A: Date Account Debit Credit January 1 Cash Preferred stock (par P8) Paid in capital in excess of…
Q: q2a- List and compare three different ways of issuing shares in the primary market. (6 mark worth…
A: The primary market is a part of the capital market. It enables the government, companies, and other…
Q: The stockholders’ equity section of the balance sheet includes which of the following accounts?…
A: Stockholder's equity is recorded on organization's balance sheet and its amount is the difference…
Q: What are the number of shares, par value per share, and market price per share immediately after the…
A: Information Provided: Stock Split = 2-for-1 Common shares = 11,000 Par = $1 Market Price = $16
Q: Explain each of the following terms: authorized ordinary shares, unissued ordinary shares, issued…
A: Authorized ordinary shares refer to the total maximum number of shares that are legally allowed to…
Q: 3) Consider the following three stocks: Stock Price Number of shares outstanding Stock A $ 10 200…
A: A value weighted index assigns weightage to various securities according to their market…
Q: a. The number of shares outstanding after a 2-for-1 stock split is shares. (Round to the nearest…
A: When common shares go stock split, the number of shares outstanding increases, but there is no…
Q: Compute number of shares outstanding after the stock dividend. Number of shares outstanding
A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…
Q: The data below shows the 5 stockholders given the par value, dividend percentage and number of…
A: Dividend is the amount distributed among the stockholders of the company from the earnings after…
Q: What Does Stockholder's Equity Mean and Define the two main parts of Stockholder's Equity? (200- 300…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: Calculate the dividends for the following: The board of directors declared preferred dividends and…
A: Given the following information: Dividends declared to preferred stock shareholders and common…
Q: If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the…
A: A stock dividend is a dividend payment made to shareholders in the form of stock instead of cash.…
Q: When an investor owns between 20% and 50% of outstanding stock of another company and has…
A: When an investor owns between 20% and 50% of outstanding stock of another company and has…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Retained earnings is the amount of earnings which is accumulated over the period of time. Net Income…
Q: Using the following accounts and balances, prepare the Stockholders' Equity section of the balance…
A: (1) The total stockholder's equity sections will represent the Owner’s capital or their claim in the…
Q: - Issued shares of common stock. Stock has par value of per share and was issued at $ per share.…
A: The shareholders equity includes the capital and retained earnings that belongs to the shareholders…
Q: The following data are extracted from the shareholders' equity section of 5 points the statement of…
A: Retained earnings are an important element of the balance sheet of the business organization. A…
Q: Authorized shares are the a) Number of shares that have been distributed to shareholders b) Total…
A: Shares indicating the units of equity ownership according to the corporation's wealth. It distribute…
Q: a. Show the effect on the equity accounts and per-share data of a 20% stock dividend. The number of…
A: When additional number of shares are issued to existing shareholders in place of cash dividend, it…
Q: Beacon Corporation issued a 4 percent stock dividend on 37,500 shares of its $8 par common stock. At…
A: Ordinary stock dividend - Small stock dividend (usually less than 20-25%) recorded at FV of stock at…
Step by step
Solved in 2 steps
- 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).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.Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
- 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.A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cashOutstanding 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.