July 1- Sold 1,000 subscriptions for common shares at $20 per share. Subscribers paid $5 per share on this date; $5 more per share is due on September 1. Subscribers who fail to make the second payment on September 1 get their deposit refunded. The final payment of the balance of $10 per share is due on December 1. Subscribers who fail to make the final payment forfeit the $10 per share they have
Q: Will this amount form part of Jinkee’s gross income? Why or why not?
A: Gross income is the income which is earned by the person during the year which includes all the mone...
Q: Yeontan Company is engaged in a small export business. The company maintain limited records. Most of...
A: Net Purchases = Cash purchases + Cash payment to trade creditors - Decrease in Accounts payable - De...
Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, a...
A: Net Income = Total revenue - Total expenses Retained earnings , ending balance = Retained earnings b...
Q: a fired aset, h aa conputer, was phased an lanary i fer 1.419 wth timated Me ot aandasae or u v .e j...
A: Monthly depreciation expense using straight line depreciation = (Cost - salvage value)/useful life i...
Q: The Accountant for the a Company forgot to make an adjusting entry to record depreciation for the cu...
A: What is Depreciation? In business, the fixed asset is used over a long period. Due to this, there is...
Q: Wharton, Inc., pays income taxes on capital gains (Including gains on marketable securities) at a ra...
A: Realized Gain = Cash - Cost Tax amount = Realized Gain * Tax rate
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and s...
A: Inventory valuation refers to the monetary amount or value associated with the goods in the inventor...
Q: 4.) Mr. Ali has been in business for some years. The following trial balance has been extracted from...
A: Financial statement is prepared from the trial balance which include :- Profit and loss and oth...
Q: 1. There are a few errors in the annual income statement for Mayfare Plumb- ing, owned by James Fare...
A: Income statement means the statement which show the cost of goods sold and selling price and give ou...
Q: nciples (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those ...
A: GAAP = generally accepted accounting principles When CPA firms are audited they take all types of me...
Q: Use the following information to prepare, in good form, an income statement, a statement of changes ...
A: An income statement is a statement that shows the income and expenses of a company. It also shows w...
Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, a...
A: The balance sheet represents the financial position of the business with assets and liabilities on a...
Q: Break-Even with Multiple Products Wagner Enterprise sells two products, large tractors and small tra...
A: Sales mix refers to proportion of each unit of product in relation to the total sales. It is integra...
Q: Permission to Dance Company completed the following transactions in the year to December 31, 2021: ...
A: Related Party Disclosure According the PAS 24 which are deal with the related party disclosure which...
Q: Average Cost per Unit $6.55 Direct materials Direct labor Variable manufacturing overhead Fixed manu...
A: Variable cost: Variable cost means cost which vary with the every units. It increases/decreases with...
Q: Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plan...
A: The overhead is applied to the production on the basis of predetermined overhead rate.
Q: During classroom discussions, you came across multiple views about whether or not corporate dividend...
A: The amount of dividends paid to shareholders by a company, as well as the frequency with which they ...
Q: Problem 15-23 (PHILCPA Adapted)Malampaya Company showed income before income tax of P6, 500,000 on D...
A: Net income means the income left after deducting all expenses and including all income whether opera...
Q: What tax is to be paid by Stacy on this benefit for the year of assessment 2021?
A: Benefits are actually the perquisites which the employee receives from the employer during the year ...
Q: In Q2 of 2022, Dogs Company made advertising expense amounting to P800,000. The said advertisement a...
A: Accrual system of accounting says that every thing which is accrued has to be provided in books of a...
Q: Dakota Corporation is an owner/operator of 15 water filtration systems in the Northwestern region of...
A: In Accounting we have capital expenditure and revenue expenditure. Capital e...
Q: Costs for Different Levels of Units Produced and Sold Direct labor At 2,000 units At 4,000 units $ 2...
A: 1. Variable cost - It refers to the cost which changes with the change in the same ratio as a change...
Q: Live Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual...
A: Prepaid expense: Prepaid expense means future expenses which are paid in advance. Initially, Prepaid...
Q: Which account would be credited when closing the account for rent expense for the year? Prepaid Ren...
A: Prepaid Rent - It is the amount of rent paid in advance for the next year . Rent Expense - It is ...
Q: Cash received from long-term notes payable Purchase of investments $ 44,000 11,100 35,600 17,800 Cas...
A: PARTICULARS AMOUNT (IN $) CASH FLOW FROM FINANCING ACTIVITIES CASH RECEIVED FROM LONG TER...
Q: a) Ace Company stockholder's equity at the end of 2015 is shown in the table below. Determine the nu...
A: Ordinary share capital means the shares having the voting rights in the entity.
Q: (1) What factors might lead a company to gainadditional funds through debt financing rather thanthro...
A: Financial Activities: Financial exercises are exercises that organizations embrace to assist with ac...
Q: Salem Company has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The bon...
A: Solution Note :Dear student as per the Q&A guideline we are required to answer the first questio...
Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, a...
A: Common Stock , Ending balance = Common stock , beginning balance + Issued common stock Retained earn...
Q: Delicious Dinners (DD) is a business entity which offers online cooking classes. Customers pay an an...
A: Intangible assets are assets involving intellectual properties like patents, trademarks, customer li...
Q: Sunn Company manufactures a single product that sells for $170 per unit and whose variable costs are...
A: Formulas: Break even units = Fixed costs /Contribution margin per unit Contribution margin per unit...
Q: b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate cal...
A: Activity based costing assigns the cost of each activity to all product and services Activity based ...
Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in you...
A: A short-selling of an asset or stock means that the investor sells the borrowed securities immediate...
Q: Yeontan Company is engaged in a small export business. The company maintain limited records. Most of...
A: Purchases Purchases is considered to be important part in the business entity which was used for the...
Q: PE 2. Baler Company has annual sales of P2.5M with variable expenses of 60 percent of sales and fixe...
A: Solution Given Annual sales 2.5M Variable expenses 60% of sales Fixed expense per mo...
Q: In 2021, Cream company reported cash basis income of P 7,800,000. Tracing back its records, accounts...
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...
Q: How do you get the $41,200 from the 70% of 85000 units shown in answer 2 solution
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Yeontan Company is engaged in a small export business. The company maintain limited records. Most of...
A: Net Purchases = Cash purchases + Cash payment to trade creditors - Decrease in Accounts payable - De...
Q: Norte Company has three manufacturing divisions, each of which has been Determined to be reportable ...
A: The segment margin is calculated as difference between revenue earned by margin and traceable expens...
Q: Net income in cash basis is the same as the net operating cash flow for the period. True or Fals...
A: Net Income in cash basis means while calculating net income from income statement , only transaction...
Q: 6. Galera Corporation debited Cost of Goods Sold and credited Manufacturing Overhead at year-end. On...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Compute the basic earnings per share and diluted earnings per share.
A: Earnings per share is calculated using net income and weighted average number of shares outstanding....
Q: In the income statement for the current year, JK Company reported revenue P50,000,000, excluding int...
A: The minimum amount of sales to be a major customer should be 10% of total combined identifiable asse...
Q: 1. A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful l...
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear, tech...
Q: The balance of an unearned revenue account:
A: The balance sheet shows the financial position of the company that includes the assets, liabilities,...
Q: An analyst has compiled the following information relating to a company for the year ended 31 Decemb...
A: Return on equity (ROE)=Net Profit after taxTotal Shareholder's Equity at year-end×100
Q: Thabo borrows R850 000 from a bank to buy a house. He has to pay the bank back R7 647,67 per month f...
A: Answer: Given Present value 850000 Monthly payment 7647.67 Number of year 20 N...
Q: On July 3, Adrian Rodriguez accepted a $6,000, 9.5%, 90-day note for merchandise purchased by Teresa...
A: "Since you have asked multiple questions, we will solve first question for you. If you want any spec...
Q: Your company sells consulting services in legal forecasting to multinationals studying foreign marke...
A: Interpretation of law is Explanation on legal text and technical words contained in relevant law.
Q: On January 1, 2022, Ivanhoe Corporation had the following stockholders’ equity accounts. Common Sto...
A: A shareholder, also referred to as a stockholder. He is a person or company, that owns at least one ...
Problem One:
Prepare proper
The following activities regarding share subscriptions occurred during 2020 for Batman Industries Inc.
July 1- Sold 1,000 subscriptions for common shares at $20 per share.
Subscribers paid $5 per share on this date; $5 more per share is due on September 1. Subscribers who fail to make the second payment on September 1 get their deposit refunded.
The final payment of the balance of $10 per share is due on December 1. Subscribers who fail to make the final payment forfeit the $10 per share they have paid.
September 1 – 900 of the subscribed shares first payment were made. 100 were not made and qualified for the refund. Record the payments received and the refund made.
December 1 – 800 final payments were received, 100 more did not make the payment and forfeited their first two payments. Record the payments received, the common shares issued, and the payments forfeited.
Step by step
Solved in 2 steps
- 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 Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 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?
- Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.The 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%.
- 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.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.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.