In the declaration entry, Stock Dividend amount is: * O Debit $112,500 O Debit $202,500 O Credit $112,500 O Credit $202,500
Q: A) Compute the EPS before the new shares are issued, round answers to two decimal places. $ B)…
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…
Q: What is the total stockholders' equity based on the following account balances? Common Stock…
A: Meaning of Stockholders' Equity Stockholders' equity is the total amount of capital given to a…
Q: Using the information in No. 8 and assuming the share capital dividend declared is 4/40, the amount…
A: Dividend is the amount paid to the shareholder’s for their investment in the business. Dividend paid…
Q: Compute for the balance of the Retained Earnings account be if USD60,000 in arrears dividends and…
A: Retained earnings refers to that portion of the after-tax profit of the company which the company…
Q: Beacon Corporation issued a 3 percent stock dividend on 37,000 shares of its $7 par common stock. At…
A: A stock dividend is the unrestricted distribution of a company's common stock to its shareholders. A…
Q: Indicate whether each of the following transactions increases (+), (decreases (-), or has no effect…
A: The accounting equation is written as: Assets = Liabilities +Owner's Equity
Q: b. Determine the following amounts before the stock dividend was declared: (1) total paid-in…
A: Solution A- Journal…
Q: When a stock dividend is declared, which of the following accounts is credited? O a. Common Sock O…
A: Stock dividend is the dividend payment made in the form of the number of stocks.
Q: yedrs of opelatiolns, itl Net income for 2017 $ 31,100 Net income for 2018 Dividends for 2017…
A: The shareholders' equity section represents the capital, net income, retained earnings that belongs…
Q: The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1…
A: Stock dividend is a dividend distributed to equity shareholder in the form of shares, not in the…
Q: Balance Sheet Equity APIC Events Assels Liab Acct Payable Div Payable Notes Payable Cash 257.000.00…
A: >Statement of Stockholder's equity includes the changes made to the 'equity' component of Balance…
Q: You have the following information about Trisha Company: total asset = P350,000; common stock equity…
A: The Return On Equity proportion basically calculates the rate of return that perhaps a company's…
Q: reports the llowing (In ml lick the icon to view the comparative balance sheet.) ne reguirements. by…
A: Stockholders' equity, often referred to as shareholder or owners' equity, refers to the amount of…
Q: QUESTION 2 The following is a partial Statement of Financial Position of Juara Bhd: Common stock…
A: Stock dividend is one of the form of dividend being paid to the shareholders. In this, shares of the…
Q: You have the following information about Trisha Company: total asset = P350,000; common stock equity…
A: Return on equity (ROE) seems to be a metric for determining how much a company uses the equity – or…
Q: 9 Consider each of the following independent transactions. How will each of these transactions…
A: ROE = Income/Equity Current Ratio = Current Assets/Current Liabilities Debt/Equity = Debt/Equity…
Q: Consider the following information of a company: Sale of common stock P 880,000 • Sale of preferred…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: Beacon Corporation issueda 4 percent stock dividend on 37,000 shares of its $8 par common stock. At…
A: Stock dividend is the dividend given to the shareholders' in the form of shares.
Q: The following data were taken from the balance sheet Current assets $554,000 Debt investments…
A: Journal entries (JE) refers to reporting of the business events into the books of the company or…
Q: (b) Indicate the balances in the three stockholders' equity accounts after the stock dividend shares…
A: The question is based on the concept of Financial Accounting.
Q: (b) Indicate the balances in the three stockholders' equity accounts after the sto Common stock…
A: Solution: Introduction: Common stock are the ordinary shares which are issued by a company to…
Q: At what payout percentage is a stock dividend typically considered a stock split, in accordance with…
A: A stock dividend is a dividend that is paid in the additional shares form to shareholders while…
Q: (a) Reproduce the Retained Earnings account (T-account) for 2010. (b) Prepare a retained earnings…
A: Particulars Amount Amount Shareholders equity & Liabilities shareholders’ equity…
Q: 1. The following is a list of stockholders' equity accounts appearing on the balance sheet for
A: Total paid-in Capital:- Total paid-in capital is the full amount of consideration [cash or assets]…
Q: . A property holdings declared a dividend of P9 per share for the common stock. If the common stock…
A: The stock yield ratio is the dividend divided by the stock price.
Q: How would I prepare this balance sheet? I've included the trial balance and below is the statement…
A: A balance sheet refers to the statement prepared by the company by stating the assets, liabilities,…
Q: What is the total stockholders equity based on the following account balances? Common stock…
A: Total stockholders equity = Common stock + Paid in capital excess of par + Retained earnings -…
Q: The dates of importance in connection with a cash dividend of $70,000 on a corporation's common…
A: On the date of declaration, dividends are declared and not paid, hence a liability account called…
Q: Instructions a. Journalize the transactions. b. Post to the stockholders’ equity accounts. (Use…
A: Stockholders equity is also known as shareholders’ equity. It indicates the net asset available to…
Q: The following information is available for Metloc Rock Corporation: Common Stock ($5 par)…
A: The stock dividend is a method of capitalizing the retained earning. Generally the large stock…
Q: Dividend Policy The following represents the stockholder's equity account of Security Data Company:…
A: Given, preferred stock R200,000 Common stock R200,000
Q: What is the amount debited to accumulated profits as a result of the declaration of the 10% stock…
A: Stock dividend is the dividend which company gives to its shareholders as a dividend but this time…
Q: You have the following information about Trisha Company: total asset = P350,000; common stock equity…
A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…
Q: Use the following to answer the questions DO NOT INCLUDE COMMAS OR DOLLAR SIGNS IN YOUR ANSWERS…
A: The current ratio measures the organization's ability to meet the short-term liabilities due within…
Q: Treasury Stock Balance Sheet Stockholders' Equity Paid-in capital: Paid-in capital, common stock…
A: Companies issue shares to shareholders and receive funds. The shares that a company takes back from…
Q: Prepare a statement of stockholders' equity for the year ended December 31, 20Y9. If an amount box…
A: Treasury Stock - Treasury stock is the own shares purchased by the corporation. It shows as the…
Q: What Does Stockholder's Equity Mean and Define the two main parts of Stockholder's Equity? (200- 300…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: You are given the following information: Stockholders? equity = GHS1,250; price/earnings ratio = 5;…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Please answer this one
A: When a company issues stock dividends, the amount shall be recorded to the extent of the par value…
Q: A company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the…
A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…
Q: Compute Beginning stockholders' equity. Beginning stockholders' equity $ Ending stockholders'…
A: Answer: Opening stockholders equity= Closing stockholders equity -( Issuance of stock + Net income-…
Q: The balance sheet for Violeta Corporation at the end of the current year includes the followi 000…
A: Earnings per share is the return for every share held by the shareholders. It is calculated by…
Q: Indicate whether each of the following transactions increases (+), decreases (−), or has no effect…
A: Offer capital is the cash an organization raises by giving normal or favored stock. The measure of…
Step by step
Solved in 2 steps
- 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?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. 6.73Raun 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.
- 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.Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.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.
- 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.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?Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?
- 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.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?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.