In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% downpayment. What is the amount of the company's legal capital in 2021?
Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall…
A: Number of days' sales in receivables is the number of days required to get collection from accounts…
Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…
A:
Q: Contrast activity-based costing (ABC) with activity-based management (ABM). Question…
A: ABC system of cost accounting is based on activities , which are considered any event, unit of work…
Q: Sheridan's Repair Service uses the straight-line method of depreciation. The company's fiscal…
A: In the books of Sheridan’s Repair Services : JOURNAL ENTRIES DATE ACCOUNTS TITLE DEBIT…
Q: Q.1:A company purchased equipment on November 1, 2019. Equipment was used 300 hours in 2019, 2800…
A: Lets understand the basics. In straight line basis, depreciation is calculated in equal installment…
Q: he Break Division
A: Operating income is used to calculate the profits or the entity's cash flow. A residual is an amount…
Q: What Is the investment carrying value at December 31. 2020? a. P6,162,000 b. P5,970,000 c.…
A: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share. At…
Q: Use the given statement of comprehensive income below in answering the question. DEF Company, Income…
A: Percentage change in net profit means the change in the net profit in the current year as compared…
Q: Knights Technologies is considering changing its credit terms from 2/15, n/30 to 3/10, n/30 to speed…
A: Outstanding sales days is a measure that shows how long it takes for a company to get money for a…
Q: XYZ Corporation is considering a new product line. The company currently manufactures several lines…
A: Incremental cash flow is the additional operating cash flow that the company will incur or receive…
Q: 19. Odette has a base monthly salary of S1,500 and earms a 5% commission on all sales she makes at…
A: The commission income has been calculated as follows: Commission income=Total income-Salary income…
Q: Show TLG formula
A:
Q: MORGAN Merchandising is preparing its Production Budget for the 3rd Quarter of 2020. Its Sales…
A: Lets understand the basics. Management prepares master budget and various budgets based on the…
Q: Assuming the excess of acquisition cost over the underlying equity acquired is attributable to a…
A: The answer for the multiple choice question and relevant working are presented hereunder : Gray…
Q: Alexia Jones is a worker at a local 24-hour pharmacy. Alexia works the night shift and is the only…
A: Fraud seems to be a deliberate deception intended to achieve an illegal advantage for the offender…
Q: 19. Odette has a base monthly salary of S1,500 and earms a 5% commission on all sales she makes at…
A: Let the total sales be $ K. Monthly Income = $ 1,500 + 5% of sales $ 7,500 = $ 1,500 + 5% of $ K $…
Q: On December 31, 2020, Merlin Company had outstanding 400,000 shares of common stock and 40,000…
A: Calculation of Net Income available to common shareholders: Net Income available = Total Net Income…
Q: the beginning of current year, CFAS Company issued 50,000 shares of P10 par value for P113 per…
A: under the constructive retirement it is used when there is a function that share will not be…
Q: Part I. Using the adjusted trial balance of Margie Decorating Services, compute for the following:…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: A company started operations in 2019 with 250,000 P10 par value ordinary shares and 20,000 9% P100…
A: It is given in the question that preference shares were cumulative, so firstly we need to calculate…
Q: The overall objective in the audit of the acquisition and payment cycle is: Group of answer…
A: Introduction:- An audit is an "independent examination of financial statements of an organization.…
Q: .T.Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was…
A: Doubtful debts are those accounts receivables from which it is doubtful that whether due amount will…
Q: Compute the accounts receivable turnover in days. fill in the blank 4 days 5. Compute the…
A: Accounts receivable turnover in days is the average number of days within which collection is…
Q: 1: Operating expense in 2019 is 20% higher than it was in 2018 indicates a vertical analysis. II: In…
A: Vertical analysis means where the percentage is calculate by taking total assets as base in balance…
Q: Additional Information for MKH Co. in 20X1: 1. Net income for year 20X1 was $216,000. 2. The company…
A: Cash flow statement includes: Cash flows from Operating activities Cash flows from Investing…
Q: Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio…
A: Solution 3a: If Audio Division can sell all of its speaker to outside customers for 88 per speaker,…
Q: On a beautiful spring morning in 2015, Stephen Lowber, chief financial officer of Cutter and Buck,…
A: Fraud has been defined as a false portrayal of the facts that causes harm to the victim by acting on…
Q: Last day to appeal to the CTA is
A: Tax refund is the refund of the income tax which has been paid by the taxpayer during the year more…
Q: Zabra Co. makes and sells a single product. For ench one unit of produict, 2 nicters of Material are…
A: In the given question first we will calculate the Production in uniys with the help of Sales Budget…
Q: If treasury shares are subsequently retired and the cost of the treasury shares exceeds the par…
A: Solution: When treasury shares subsequently retired where cost exceeds par value, then difference is…
Q: The stockholders’ equity of A Company at the end of 2023 and 2022 are as follows: 2023 2022…
A: To calculate the issue price per share of preferred stock, firstly we need to calculate the no. of…
Q: June 1 Balance 302 unitse $17 June 10 Sold 200 units@ $40 11 Purchased 795 units $20 15 Sold 496…
A: Introduction: FIFO: FIFO stands for First in First out. Which means First received inventory to be…
Q: Marigold Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the…
A: Pension Expenses: It is the sum that a business charges to expense according to its liabilities…
Q: a. Determine a present value factor for an annuity of $1 which can be used in determining the…
A: Solution:- a)Determine a present value factor for an annuity of $1 which can be used in determining…
Q: On January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. During the year,…
A: The treasury stock decreases the number of shares outstanding but issued shares remains constant.
Q: Research about the meaning of the culture of an organization. Explain how it is related to building…
A: Meaning of culture in an organization : Culture is a value and belief that are followed by the…
Q: I need answers for my worksheet like the format of the other picture. Thank you.
A: Worksheet is a 10 column sheet which is prepared in order to assist preparation of financial…
Q: The Cabinet Division of the M.T. Woodhead Company produces basic posts which can be sold to outside…
A: Note: As per the general rule of transfer price, in the case of sufficient capacity available, the…
Q: A consortium of international telecommunication companies contracted for the purchase and…
A: Depreciation: - Depreciation is the total reduction in the value of the asset by its regular use or…
Q: It says to round it to two decimal places which I did and its still says its wrong? Is there…
A: Lets understand ratios in short. Current ratio indicates firm's ability to pay its short term…
Q: A firm plans to depreciate a five year asset in the next planning period. The statements that will…
A: Depreciation is the decrease in the value of asset due to use, passage of time and obsolescence. It…
Q: What is the formula for the "Net Income attributable to P Corporation"? How did you come up with…
A: Net income is the difference between total revenues and expenses.
Q: need help answering part D on total assets for 2022
A: Total assets is the total amount of asset side of the balance sheet. It includes both current assets…
Q: 30. In a make-or-buy decision, a potential supplier comes to you offering to make your product for…
A: Net income will be the same at a price equal to the Relevant cost per unit of making the product.…
Q: 19. Odette has a base monthly salary of S1,500 and eams a 5% commission on all sales she makes at…
A: The calculation of commission income has been made as follows: Commission income=Total income-Salary…
Q: Part V. Unearned Revenue On November 1, Luna Repair Shop receives P80,000 from a customer as payment…
A: Adjusting entries are those journal entries which are passed at the end of accounting period for the…
Q: When the equity shares are issued for noncash consideration, the share capital is recorded at an…
A: Solution: When the equity shares are issued for noncash consideration, following are priority to…
Q: I: Common-size analysis all accounts are presented as percentage of total liabilities in Balance…
A: Financial statements are those statements and reports which are prepared at the end of the period…
Q: s fees of P5,100. The shares represented 25% of the outstanding shares of Rigby and Jude has an…
A: Investment Valuation for acquisition of share of a company shall be recorded at the cost of…
Q: TION 7. Following bala E BEE Ltd. : 4,50,00 3 49.16 s at cost
A: Statement of Profit and Loss: This is one of the financial statements which represents the current…
In 2021, a company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% downpayment. What is the amount of the company's legal capital in 2021?
Step by step
Solved in 2 steps
- 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.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
- Monona 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.Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.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. 6.73
- Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.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. 3,370,000The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
- 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?Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.