Grey Company will distribute its shares to Summers Company How much is the cost per share of Investment in Blairo Company on December 31 2021?
Q: On July 1, 2021, VISION Company issued rights to shareholders to subscribe to additional shares of…
A: In the following question we have to identify number of shares issued as a result of right issue and…
Q: The share price for A LTD at 1st July 2019 was $4.40 and at the 31st June 2020 was $5.17. you have…
A: Return on shares means the total return which will be earned from the shares by the shareholder. It…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: The stockholder's equity will be changed when the stock rights holder will exercise the stock rights…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Right Shares - It is refer to the issuance of those shares which was offered by the company to their…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Right issue Right issue which is provided by the company to its existing shareholders to acquire…
Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Frost Company…
A: As per the equity investment method, the value of the investment is measured at their cost and that…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Comical Company issued rights to stockholders to subscribe to an additional share of its common…
Q: 2021, the board of directors of ABC Co. declares a 10% share dividend. The market price of ABC’s…
A: Explanation of Concept Dividend is the part of earning which is been distributed to the shareholder…
Q: On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be…
A: Right shares are the shares issued after original issue to the existing shareholder to purchase more…
Q: On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share…
A: The allocation of aum sum issue amount is given by Ai = Mi/M * C Where Ai = amount allocated to…
Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Investee's…
A: Dividend: Dividend is the return on stock investment earned by the shareholders of a firm.
Q: Integrity Company is a publicly held company whose shares are traded in the over-the-counter market.…
A:
Q: Jacobson Company is considering an investment in the common stock of Biltrite Company. What are the…
A: a. 15% of Biltrite’s outstanding shares: Jacobson can take this opportunity. Jacobson has a passive…
Q: On January 1, 2021, BLACK WIDOW Company offered its top management share appreciation right with the…
A: Compensation expense for the year = Number of share x Fair value of right at year end - Expense…
Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…
A: When the shareholder of an entity is given an invitation to purchase more or additional shares of…
Q: On July 1, 2019, Isaiah Company issued rights to shareholders to subscribe to additional ordinary…
A: Stockholder Equity- It refers to the equity stake presently possessed by the organization which is…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Right issue is the company jurisdiction to issue shares to existing shareholder before make issue…
Q: Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as…
A: Trading Securities are the financial instruments purchased by the company to deal within 1 year.…
Q: 3. How much is the balance of Share Options Outstanding at the end of 2020? DASHER Company adopted…
A: At the end of 2019 , market related condition is not satisfied but it is expected that it will be…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Right Shares - It is refer to those issued of new shares which company offers to their existing…
Q: On January 1, 2021, BLACK WIDOW Company offered its top management share appreciation right with the…
A: Compensation expense recognized upto December 31, 2022 = (Quoted price per share on December 31,…
Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…
A: Given that the Kier corporation holds 30,000 shares in Lord company. Kier corporation Rights=…
Q: On July 1, 2021, VISION Company issued rights to shareholders to subscribe to additional shares of…
A: SOLUTION- TOTAL CONTRIBUTED CAPITAL = ORDINARY SHARE CAPITAL + SHARE PREMIUM.
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: The company is not required to do accounting on the issuance of stock rights. The transaction is…
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: Dividend in form of shares given to stockholders is called as Stock Dividend Stock Dividend is…
Q: Prepare the note disclosure required (e) On 10 September 2021, the company paid a dividend of…
A: Notes to accounts are disclosures made by the company regarding the calculation and other details of…
Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Frost Company…
A: Cost Per Share of Investment in Blare Companies on 31 December 2021 = 280 Total Amount Shares of…
Q: During 2019, Honeymooners Companies issued 4,000 preferred shares with par value of $ 1 to $ 11…
A: Given Preference share ( $1 par value ) issued @ $11 each 4000 Preference share ( $1 par value )…
Q: s shares of Marlin Corporation stock. At December 31, 2020, the securities were carried in Cole's…
A: Definition: Journal entry: Journal entry is a set of economic events which can be measured in…
Q: Assume that the entity is a medium-size and the company policy is to account this type of investment…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: During 2019 Lovely Company purchased trading securities with the following cost and market value on…
A: A firm may purchase financial assets to invest its surplus cash in order to earn some extra income.…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Cash increase 60,000 shares * P25 P1,500,000 Right shares increase 12000 shares * P50 P600,000…
Q: During 2021 if Anya Corporation has issued common stock equal to 30% of the outstanding common stock…
A: Common stock represents the capital contributed by owners of a company. Common stock holders possess…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Given in the question the following information A stockholder can buy one new share for every 5…
Q: of exercise. The following are the share prices: January 1, 2021 100…
A: Under share appreciation rights, any increase in price of shares above the agreed price is…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: SOLUTION- THE COMPANY HAS ISSUED A 1:5 RIGHT ISSUE TO SHAREHOLDERS FOR P25.
Q: At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6%…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price of P6 per…
A: Earnings Per Share- Earnings per share refer to the portion of the profit that each shareholder…
Q: At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6%…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: What is the effect on the stockholders’ equity as a result of the issuance of stock rights? a.…
A: Total number of right shares = total number of shares / share per rights = 100000/5 = 20,000 Issue…
Q: Oriole Company owns 3100 of the 10000 outstanding shares of Skysong Corporation common stock. During…
A: Investment revenue is amount earned on investment
Q: On December 31, 2021, Scott Company received the following dividends: Investee Company Investee's…
A: The dividend income is recognized as income on the declaration by the board of the company and if…
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: Normally dividend in form of stock is to be issued when company has less cash reserves.
Q: Compute the following: 1. Book Value per share as of December 31, 2019. 2. Book Value per share as…
A: As per the guideline, we are supposed to answer three subparts of a single question. Book Value per…
Q: Presented below is information related to the purchases of common stock by Thomlin Company during…
A: Unrealized Investment Gain or Loss: Unrealized gain refers to a rise in the price of an item or…
Q: In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible…
A: The conversion of preference shares into ordinary shares will be booked at book value of preference…
Q: On Jan. 1, 2020, Terra Company established a share appreciation rights plan for the executives. The…
A: The share appreciation rights are away the organization provides a bonus to its employees and the…
Step by step
Solved in 2 steps
- Hyde 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. 6.73On 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.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.
- Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000Alert 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).Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
- 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.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.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?