Instructions: a. Journalize the transactions. b. Explain how dividend revenue and the gain (loss) on sale should be reported in the income statement.

Q: Hayfa Bhd has 50,000 shares, RM50,000 for ordinary share 'outstanding. Prepare journal entries to…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Before preparing financial statements for the current year, the chief accountant for Pharoah Ltd.…

A: Solution:- Preparation of the journal entries as follows under:- Note:- Error in accounting entry…

Q: Familia Ltd. purchased from its shareholders 5,000 shares of its own previously issued shares for…

A: Purchase price of Treasury stock : = $ 250000/5000 shares = $ 50

Q: Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in…

A: Prepare journal entries:

Q: Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On…

A: Purchase of Shares= 20000  Price paid for the shares= P1344000 Therefore, Price paid for each share=…

Q: Oriole Company had the following transactions during the current period. Mar. 2   Issued 4,200…

A: Journal entry is an activity of record keeping of economic or non- economic transactions in thr…

Q: Cosmos Corporation had the following long-term investment transactions. Year 1   January 2 Purchased…

A: Solution:  journal entries Cosmos Corporation should record for these transactions and events are as…

Q: Flint Co. had the following transactions during the current period. Mar. 2 Issued 4,100 shares of $6…

A: Increase in assets should be debited. Increase in expense should be debited. Increase in equity…

Q: Before preparing financial statements for the current year, the chief accountant for Crane Ltd.…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On September 12, 2,600 shares of Aspen Company are acquired at a price of $48.00 per share plus a…

A: 1. CALCULATION FOR PURCHASE OF INVESTMENT : = (2,600 X $48) + $130  = $124,930   2. CALCULATION OF…

Q: On September 12, 3,800 shares of Aspen Company are acquired at a price of $60.00 per share plus a…

A: Brokerage commission paid to purchase the shares will be added to the cost of the shares.

Q: On February 22, Triangle Corporation acquired 2,700 shares of the 95,000 outstanding common stock of…

A: The purchase of shares leads to share in profits of the company, whose shares are being purchased.…

Q: Metlock, Inc. had the following transactions during the current period. Mar. 2   Issued 4,800…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The securities owned by Miratloces Company were held as a long-term investment. During the current…

A: S.No Particulars Amount in Dr. Amount in Cr. 1-Jan     Investment in ABC company A/c    To Bank…

Q: Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The…

A: If an investment is purchased then there are two methods to record the investments namely, the cost…

Q: n May 1, 20x1, Damage, Inc. declared cash dividends of P20 per share to shareholders of record on…

A: Journal entry is the part of book keeping.

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Total deividend received = No. of shares x Dividend per share = 6,000 shares x $0.42 per share =…

Q: The securities owned by Miraflores Company were held as a long-term investment. During the current…

A: Journal entries Carrying value of the investment.

Q: Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: XYZ Company receives net proceeds of $42,000 on the sale of share investments that cost $39,500. The…

A: An investment seems to be an asset or thing purchased with the intention of earning income or…

Q: Prepare the journal entries for the original purchase, the dividend, and the sale under the cost…

A:

Q: Aris company declares a cash dividend of $1.00 per share on its 12.000 common shares outstanding.…

A: Given that  Cash dividend = $ 1.00 per share  Common shares outstanding = 12000

Q: Hao Corporation had the following transactions during the current period. Mar. 2   Issued 37,000…

A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

Q: Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the…

A: Error in accounting entry can be corrected by either reversing entry which is incorrect and entering…

Q: Before preparing financial statements for the current year, the chief accountant for Crane Ltd.…

A: when transaction is recorded wrongly in account, it needs to be corrected when it is found.   1.…

Q: Nasser Inc. had the following transactions pertaining to stock investments.   Jan. 1 Purchased…

A: Journal Entry refers to the first step in the accounting cycle. It is used to record all the…

Q: a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the…

A: Requirement a:   Pass all of the necessary journal entries to record the events.

Q: AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company…

A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…

Q: ABC bought 100 common shares of XYZ. The price paid was $ 40, per share, plus he paid $ 280 in…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On December 2, Coley Corp. acquired 1,500 shares of its $3 par value common stock for $20 each. On…

A: Solution: Cost of treasury stock resold = 1100*$20 = $22,000

Q: h. Purchased 40,000 shares of Pinkberry Co.'s common stock directly from the founders for $24 per…

A: Journal Entries Event Particulars Debit Credit h Investment in Pinkberry Co  $960,000.00…

Q: Prepare journal entries to record the following transactions involving the short-term stock…

A: Short term investment: It can be defined as the temporary marketable security that can be…

Q: Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was…

A: Shares are a mean of raising capital from the shareholders. Shares can be ordinary shares or…

Q: Aylmer Corp has the following transactions relating to investments. Aylmer Corp has a December 31…

A:

Q: Oriole Inc. had the following transactions pertaining to investments in common stock. Jan. 1…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: The Adam Corporation had the following transactions during the year: Jan. 15 Purchased 1,500 shares…

A: Date Particulars Debit Amount Credit Amount Jan 15 Equity share of LMN stock a/c…

Q: The Sneed Corporation issues 12,700 shares of $46 par preferred stock for cash at $63 per share. The…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for…

Q: The securities owned by Jane Company were held as a long-term investment. During the current year,…

A: Journal entries in the books of Jane company. All amount in P Date…

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Q: Monsoon Company carried out the following transactions related to its common and preferred shares.…

A: Preference shares, also known as preferred stock, are securities that pay dividends to owners before…

Q: Concord Co. had the following transactions during the current period. Issued 4,200 shares of $5 par…

A: 1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: A. Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares:…

A: The Preference will be given to Preference shareholders at the time of distribution of dividends.…

Q: The securities owned by Jane Company were held as a long-term investment. During the current year,…

A: SOLUTION- CARRYING VALUE- IT IS A MEASURE OF VALUE OF  COMPANY ASSETS . IT TYPICALLY MEASURED  AS…

Q: D Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600…

A: Answer

Q: Trans Union Corporation issued 5,200 shares for $50 per share in the current year, and it issued…

A: When shares are sold or issued , cash account will be debited which increases the total assets and…

Q: Tezos Co. reported the following capital structure at the beginning of the current year: Ordinary…

A: Net income means PAT i.e Profit after taxation.   Particulars Amount PAT 1,920,000 Less:…

Q: ezos Co. reported the following capital structure at the beginning of the current year= ordinary…

A: EPS is calculated by taking into account the earnings available for equity shareholders.   WHERE,…

Q: On 5 March 20X7, Marchant Ltd issued 200,000 5% irredeemable GHS 1 preference shares.   In…

A: Preference shares are described as those shares which entitle the owners to claim a fixed rate of…

Q: The board of durectors declared a $2 per share cash dividend on common stock and the corporation had…

A: Definition:   Cash dividends: The amount of cash provided by a corporation out of its distributable…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.