h profit or loss, gers Company shares
Q: When a company issues a stock dividend which of the following would be affected? a. Earnings per…
A: Stock dividends:Stock dividends are the number of shares issued by a company to the existing…
Q: Share premium is an income to the company. Select one: True False
A: Solution: Share premium is the amount in excess of par value received by the company on issue of…
Q: are units of equity or ownership in a company. * O Stocks O Bonds
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: e profit shares of Abel and Badel res
A: Profit share between Abel And Badel respectively is b. P186,165 and P124,740
Q: Th e item “retained earnings” is a component of: C . shareholders’ equity.
A: The proportion of the entity’s net income is ploughed back as an investment for the run of the…
Q: R
A:
Q: ne company na Initial Investr Additional In Owner's Draw Net Profit/(Ne
A: The answer is stated below:
Q: 1. Included in the statement of stakeholder earuity are A assets, income, and exchenses. 16) Net…
A: As per the guidelines, only one question is allowed to be solved so I am answering the first…
Q: Define Liquidating Dividend.
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: xplain the difference between a Shar
A: Efforts of various people in order to run a successful business and many people associated with the…
Q: Which of the following are recognized as liability? I. Cash dividends payable II. Share dividends…
A: Scrip divided is the divided payable in form of cash or shares. It gives two options to share…
Q: shareholders' equity
A: If the par value of shares has been reduced, the excess in total par value should be credited to…
Q: Profits or losses are recorded in a share capital account. O TRUE O FALSE The main differences…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The shareholders of the company gets share in the profit. This distribution of profit is called as O…
A: The distribution of the profits by the company to the shareholders is called the Dividend... Option…
Q: Liquidating dividends are credited to a. income b. Retained earnings c. Investment account d.…
A: Liquidating dividends are issued when the company is considering to be liquidated. These are given…
Q: In computing basic earnings per share (EPS), the amount of preference dividends on noncumulative…
A: Income per share (EPS) could be a key activity wont to decide the regular investor's a part of the…
Q: ent Liabilities s Payable mon Shares ined Earnings
A: Sales refer to the concept when a business exchanges its goods and services with a customer in…
Q: d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: r anything other than net income or dividends. olders are guaranteed to receive in company liquidat…
A: Given: The correct option is given as,
Q: BRAMBLE CORPORATION Stockholders' Equity
A: Shareholder's equity is the breakdown of capital into Common stock, preferred stock, and retained…
Q: The type of dividend that does not affect total assets and total shareholders' equity is a. share…
A: The dividend is the portion of net income which is distributed to shareholders. Dividend payment is…
Q: what the amount of dividends paid to the company's ordinary shareholders
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Share dividends OA. have no effect on total shareholders' equity OB. are distributions of cash to…
A: Lets understand the basics. Common stockholders invested in stock in order to gain soeme return on…
Q: rdinary share capitalOrdinary share capitalWhich of the following items would not form part of the…
A: Trade payables are third party liability which are shown as liabilities and not as shareholders…
Q: A distribution of earned profits in the form of cash, property or stock Appropriation Dividend…
A: The shareholders have the right to get share of the profits earned by the business.
Q: When do dividends become legal debt of the company? – Explain. Why preference share dividend is…
A: Cumulative dividend - It is a promise by the company to the shareholders to pay a fixed percentage…
Q: Ownership of shares c
A: Option a is wrong because shareholders can elect board of directors of the corporation. Option b is…
Q: Value of equity share on net asset basis.
A: In case of redemption of preference shares and buy back of equity it is vital to transfer an amount…
Q: 2. Which of the following is a share of owners in a corporation? B. capital gain A. bond C. dividend…
A: The bond represents a loan lend by an investor to the borrower. It is fixed-income security. The…
Q: Share dividends distributable is included in the statement of financial position O As a current…
A: Correct answer is option3# As an adjunct account to share capital
Q: It is the share of profits and retained earnings that a company pays out to its shareholders. * O…
A: Ordinary shares, preference shares and debt capital are three types of sources by which company can…
Q: Stockholders' equity is comprised of O common stock and retained earnings. O net income and retained…
A: The Question has covered the concept of Stock Holder's Equity. Stock Holder's Equity is the number…
Q: What is advantges and dis advantge of shares repurchacse to the company
A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…
Q: Stock Dividends Distributable is classified on the balance sheet as a(n)(a) asset.(b) liability.(c)…
A: Stock Dividend is a dividend paid to shareholders in the form of additional shares in the company…
Q: Cash dividends paid by a corporation OA. are an expense of the corporation that declared the…
A: Cash dividends is not an expense or loss because it is not charged from the income statement. It is…
Q: What does the P/E ratio measure? C . Th e earnings for one common share of stock.
A: Pe ratio = share price/ earning per share The PE ratio is the ratio of a company's share price to…
Q: what is the shareholder value in M&A
A: The value delivered to a corporation's equity owners as a result of management's ability to increase…
Q: Question: Distinguish among: cash dividends, property dividends, liquidating dividends, and stock…
A: INTRODUCTION: Dividends are rewards, in the form of money or anything else, that businesses give to…
Q: owner's equity
A: Owner's equity at the end of the year = Total assets at the end of the year - Total liabilities at…
Q: c) Calculate the cost of ordinary shares for each capital structure.
A: Risk free rate = 4% Market return = 9% Beta of X capital structure = 0.75 Beta of Y capital…
Q: e shareholders' equity section
A: Shareholders' equity is the worth of shareholders' value of investment in the business. It includes…
Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…
A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…
Q: Define earnings per share (EPS). For which income statement items must EPS be disclosed?
A: Earnings: The term earnings refer to the amount of money the company had earned during a particular…
Q: The two main categories of stockholders’ equity area. assets and liabilities.b. retained earnings…
A: Stockholders’ equity presents the capital of the business and earning of the business. Capital of…
Q: The shareholders of the company gets share in the profit. This distribution of profit is called as…
A: Shareholders invests their money into the business for which they receive a share of company's…
Q: Treasury stock should be reported in the financial statements of a corporation as a(n) Oa.…
A: Treasury stocks are the stocks repurchased by the company.
Q: Identify which category of shareholder's equity is affected by the item and briefly explain how it…
A: Treasury Stock or Securities or reacquired shares or treasury Shares are one which are repurchased…
Step by step
Solved in 2 steps
- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossCary 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. 190,000Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.On 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.During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds issued by Makenzie Inc. b. Acquired land valued at 105,000 in exchange for machinery. c. Sold equipment with original cost of 810,000 for 495,000; accumulated depreciation taken on the equipment to the point of sale was 270,000. d. Purchased new machinery for 180,000. e. Purchased common stock in Lemmons Company for 82,500. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
