Here is Cullumber Company's portfolio of long-term stock investments at December 31, 2019, the end of its first year of ope Cost 1,350 shares of Batone Inc. common stock $64,530 1,300 shares of Mendez Corporation common stock 81,900 860 shares of P. Tillman Corporation preferred stock 33,540 On December 31, the total cost of the portfolio equaled the total fair value. Cullumber had the following transactions related securities during 2020.
Q: K Company has the following securities in its portfolio of equity securities on December 31, 2021:…
A:
Q: Bridgeport Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the…
A: Decrease in Fair Value = Total Cost - Total Fair Value Decrease in Fair Value = 127500 - 123200…
Q: Recording Entries for Equity Investment: FV-NI Adjust FVA at Year-End At December 31, 2019, the…
A: Step 1 Journal is the part of the book keeping.
Q: Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities…
A: GIVEN Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities…
Q: Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31,…
A: Unrealized holding gain or loss = Cost - Fair Value Unrealized holding gain or loss = $334,000 -…
Q: Concord Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: Fees on the sale of share are deducted from sale proceeds of investments.
Q: The following investment portfolio of equity securities (all acquired during 2019) accounted for as…
A: Here discuss about the unrealized gain or loss arised from the equity securities which are traded in…
Q: amarisk, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 950…
A: Journal Entry: It is the entry which is used by an enterprise to record the business transactions…
Q: Lowland Company's investment activities from 2020 to 2021 are recorded below. Its year-end is…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31,…
A: Particulars Cost Fair Value Fair Value Gain/ (loss) 5000 shares of Thomas Corp $ 152,000 $…
Q: DuPont Company has the following securities in its trading portfolio on December 31,2019. All…
A: Fair value adjustments: For investments in securities held in a portfolio, for changes in fair value…
Q: Statements Sharenolders Equity for LOCke intertechnology Corporation were reported as followS for…
A: working notes Earnings per share (2019) =(net income – preferred dividends)/( shares at Jan. 1 –…
Q: pr. 1 Purchased 7% MRT bonds at face value, for $56,000. Paver received interest from these bonds…
A: PAVER FINANCIAL CORPORATION Statement of Income (Partial) For the year ended Dec 31, 2021…
Q: Splish Brothers Inc. has the following securities in its portfolio of equity securities on December…
A: The question is based on the concept of Journal Entry.
Q: Parnevik Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: a) Date Accounts title and Explanation Debit ($) Credit ($) Jan.15 2021 Cash ($66,000 - 2,150)…
Q: Cheyenne Corp. has the following securities in its portfolio of equity securities on December 31,…
A: CALCULATIONS : CASH : = (610 X $47) + $500 = $29,170
Q: Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 970…
A: The shares or securities which are purchased by an entity of another business entities is classified…
Q: Shamel Company has the following portfolio of securities at April 30, 2020, its last reporting date.…
A: Trading securities are purchased by the firm to sale them in short period of time in order to…
Q: Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance…
A: No. of shares purchased in treasury stock = 21000 - 19500 = 1500 shares. Difference in value of…
Q: Prepare the general journal entry for Cheyenne Corp. for the sale of the Thomas Corp. stock. (Credit…
A: CALCULATIONS : CASH : = (5,000 X $31) - $1,500 = $153,500 EQUITY INVESTMENT : = GIVEN IN…
Q: (Equity Securities Entries) McElroy Company has the following portfolio of investment securities at…
A: Calculate unrealized holding loss on September 30,2017 as follows Investment Cost Fair Value…
Q: Fernandez Corp. invested its excess cash in securities during 2020. As of December 31, 2020, the…
A: Income statement is a statement prepared to know the net profit or loss derived from the operations…
Q: Coronado Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: In the context of the given question, we are required to prepare the journal entries of the Coronado…
Q: he following information for Smith Inc., for the year 2019, is as follows: Earnings from…
A:
Q: Castleman Holdings, Inc. had the following equity investment portfolio at January 1, 2020. Evers…
A: Journalize the entries for the given transactions:
Q: During 2019, Carol, Inc.’s net income was $2,450,000. Its common stockholders’ equity was $3,240,000…
A: Return on common stockholders' equity indicates the rate of return earned by the common…
Q: McElroy Company has the following portfolio of investment securities at September 30, 2020, its most…
A: Working note 1: Calculate the unrealized holding gain (loss) on September 30, 2020. Investment…
Q: For numbers 29 to 31 LABADA CO.'s portfolio of trading securities includes the following on December…
A: Trading securities are those types of securities which are held by the business to earn profit by…
Q: Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance…
A: Solution: Preferred dividend paid = Annual preferred dividend * 1/2 = (74000*$120*5%) * 1/2 =…
Q: Prepare a partial balance sheet showing the investment-related amounts to be reported at December…
A: Ivanhoe, Inc. Partial Balance Sheet Particulars Dec 31, 2020 Dec 31, 2021 Current Asset…
Q: Pacers Corp. Has the following portfolio of investment securities at September 30, 2018: Trading…
A: SOLUTION- WORKING NOTES- 1- COMPUTATION OF UNREALIZED HOLDING LOSS ON SEPTEMBER 30 2018-…
Q: Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance…
A: Solution: Increase in additional paid in capital = 14670000 - 14140000 = $530,000 Increase in shares…
Q: Concord Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: The procedure of entering commercial transactions for the first time in the books of accounts is…
Q: Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's…
A: Stock dividend distributable=Number of share×% of dividend×Fair value=60,000×15%×$16=$144,000
Q: SLC Corp. has the following portfolio of securities acquired for trading purposes and accounted for…
A:
Q: Ivanhoe, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company…
A: SOLUTION- WORKING NOTES-1 SECURITIES COST FAIR VALUE UNREALIZED GAIN /LOSS EVERS COMPANY…
Q: Prepare journal entries for each of the above transactions. (Credit account titles are automatically…
A: Investments can be classified into long term investments and short term investments. Long term…
Q: Swifty Corp. has the following portfolio of securities acquired for trading purposes and accounted…
A: Journal Entry - It is a record of every business transaction in day-to-day life over a particular…
Q: Myrnam Co. has the following investments held for trading on December 31, 2021: Security Co. M…
A: a. Journal entry Unrealized loss 65000 To M common shares 25000 To P common shares…
Q: HOMEWORK (Equity Investments) Messi Holdings, Inc. had the following investment portfolio at January…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Kenseth Company has the following securities in its portfolio on December 31, 2020. None of these…
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: Culver Company has the following securities in its portfolio on December 31, 2020. None of these…
A: In Investment a/c if market value >cost then it is appreciation it will go unrealised…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Oriole, Inc. had the following equity investment portfolio at January 1, 2020. Evers Company 960…
A: The stock price at December 31 , 2020 : Evers $ 18, Rogers $ 19, and Chance $ 9 The stock price at…
Q: Presented below is information related to Hale Corporation’s stockholders’ equity for the year…
A: Stockholders' equity: Stockholders' equity means the remaining net assets available to shareholders.…
Q: Lexington Co. has the following securities outstanding on December 31, 2020 (its first year of…
A:
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: Pacers Corp. Has the following portfolio of investment securities at September 30, 2018: Trading…
A: A portfolio investment seems to be the procurement of a share, bond investment, or even another…
Please help me
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.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?
- 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. 6.73Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 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.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?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.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.
- Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.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.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.