For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following stockholders’ equity data at December 31 (in millions). 00 020200 0000 020190 Additional paid-in capital $ 931 $ 817 Common stock 545 540 Retained earnings 7,167 5,226 Treasury stock 01,564 .00918 00Total stockholders’ equity $7,079 $5,665 Common stock shares issued 218 216 Common stock shares authorized 500 500 Treasury stock shares 34 27 Instructions a. Answer the following questions. 1. What is the par value of the common stock? 2. What is the cost per share of treasury stock at December 31, 2020, and at December 31, 2019? b. Prepare the stockholders’ equity section at December 31, 2020.
Q: The stockholders' equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are…
A: Stockholders’ equity:The claims of owners on a company’s resources, after the liabilities are paid…
Q: A company has the following data at the end of the current year: 200,000 207,000 $15,000 Number of…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: Solution 1: Computation of outstanding common shares on each date is as under:
Q: The following data were taken from the financial statements of Hunter Inc. for December 31 of two…
A: The ratio analysis is helpful to analyze the financial statements of the business for future…
Q: On January 1, 2017, Geffrey Corporation had the following stockholders’ equity accounts. Common…
A: The stock split leads to change in number of shares as 2 for 1 stock split will double the number of…
Q: At the beginning of Year 2, Jones Company had a balance in common stock of $300,000 and a balance of…
A: Shareholders' equity balance includes common stock, preferred stock, and additional paid-in capital.…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Common stock dividend yield = Dividend per common stock / Markrt price per common share
Q: Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year…
A: I-Cards Inc Statement of stockholders' equity For the year ended December 31 2019…
Q: The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Cheyenne…
A: The total paid-in capital in excess of par is the sum of excess capital on equity shares and the…
Q: The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30…
A: The equity section of a balance sheet shows the owner’s total claim on assets after debts have been…
Q: The year-end balance sheet of Smithfield Products includes the following stockholders’ equity…
A: Shares are issued by the company in order to fulfill its capital requirement. The common…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Formula;Dividend yield=Dividend per common shareMarket price per common share
Q: Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in…
A: A statement of shareholders' equity summarizes the changes in a company's ownership interest or…
Q: At the time that of its 10-Q filing of financial statements for the first half of its January 2002…
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a…
A: The resulting figure is used to calculate a company's profitability. It is common for a company to…
Q: [The following information applies to the questions displayed below.] The equity sections for…
A: >Common shares are issued and the holder of these (common stockholders) are basically the…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2…
A: Year 1 Year 2 Net Income $35000 $55000 Less: Preferred stock dividends 3000 3000 Earnings…
Q: On January 1, 2012, Kristen Corporation had the following stockholders’ equity accounts. Common…
A: (a) Journal entry for the transactions: Date Account title and explanation Debit Credit Feb 1,…
Q: ) how many shares of common stock are outstanding? Shares (b) assuming there is state value, what…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Dividend is the return or profit for the common stockholders. It is the cost for the firm. Stock…
Q: At the end of Malasia Inc.'s third fiscal quarter in 2020, the shareholders' equity section of the…
A: SOLUTION- TOTAL SHAREHOLDERS EQUITY- ITS REPRESENTS THE NET WORTH OF A COMPANY , WHICH IS THE…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net…
A: Formula; Dividend payout)=Dividend per common shareEarnings per share
Q: The stockholders' equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are…
A: Statement of Stockholders Equity:
Q: Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a…
A: Account receivable turnover is a ratio that indicates the efficiency of a business to collect its…
Q: For a recent 2-year period, the balance sheet of Ivanhoe Company showed the following stockholders'…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30…
A: Stockholders Equity Section of Balance shows all capital pertaining to common stockholders with paid…
Q: Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year…
A: Treasury Stock : Treasury stock or reacquired stock is a portion of previously issued, outstanding…
Q: The year-end balance sheet of Manor, Inc., includes the following stockholders' equity section (with…
A: Equity shareholders are considered owners of the company. Whereas the preference shareholders are…
Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: Solution 2: 5-Jan 5-Apr 5-Jul 5-Oct Outstanding common shares 35000 31000 31000 37200
Q: The following data were taken from the financial statements of Hunter Inc. for December 31 of two…
A: Liabilities = Accounts Payable + Current maturities of Serial bonds payable + Serial bonds payable…
Q: Markus Company’s common stock sold for $5.25 per share at the end of this year. The company paid a…
A: Inventory Turnover Cost of Good sold / Average Inventory 635100/84150 7.55 Average…
Q: The stockholders equity of larkspur, inc.'s balance sheet at december 31 is presented here…
A: Answer d) Dividend rate on preferred stock =Dividend amountTotal preferred stock…
Q: The following information applies to the questions displayed below.] Markus Company’s common…
A: Solution:- Calculation of price-earnings ratio as follows:- First, we need to calculate earnings per…
Q: Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2…
A: The return on common stockholders' equity is the percentage measure of earnings available to common…
Q: Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year…
A: Solution:- Preparation of statement of stockholders’ equity for the year ended December 31, 20Y9 as…
Q: The Company provided the following stockholders' equity account balances at the end of the year:…
A: Common shares are the ordinary shares issued by the company to the common shareholders. Treasury…
Q: Statement of Stockholders' Equity The stockholders' equity T accounts of I-Cards Inc. for the fiscal…
A: In a stockholders' equity statement, transactions (like issue of shares, purchase of treasury stock,…
Q: The year-end balance sheet of Manor, Inc., includes the following stockholders’ equity section(with…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: What is the return on equity?
A: Return on Equity: It is the return made by the shareholders of the company. ROE is computed from…
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Dividend refers to portion of earnings of an entity that is shared with common stockholders and paid…
Q: The following information was taken from the financial statements of Tolbert Inc. for December 31 of…
A: Workings: Calcualtions Result Preferred divdiend: (3,000,000 / $100) × $5 $150,000…
For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following stockholders’ equity data at December 31 (in millions).
| 00 | 020200 | 0000 | 020190 |
| Additional paid-in capital |
$ 931
|
$ 817
|
|
| Common stock |
545
|
540
|
|
|
7,167
|
5,226
|
||
|
01,564
|
.00918
|
||
| 00Total stockholders’ equity |
$7,079
|
$5,665
|
|
| Common stock shares issued |
218
|
216
|
|
| Common stock shares authorized |
500
|
500
|
|
| Treasury stock shares |
34
|
27
|
Instructions
a. Answer the following questions.
1. What is the par value of the common stock?
2. What is the cost per share of treasury stock at December 31, 2020, and at December 31, 2019?
b. Prepare the stockholders’ equity section at December 31, 2020.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
- 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.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.
- 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?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.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)
- 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.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.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?
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Bastion 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 EPS for the year for Bastion?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.
