Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued In 2020, The company declared and paid $30,000 of cash dividends. $50 - Common stock, $15 par value, 300,000 shares issued and outstanding $4, In 2021. The company declared and paid $150,000 of cash dividend. Required: How much is the TOTAL cash dividends that will be distribu preferred stock is cumulative
Q: Assume you are currently a shareholder who owns cumulative preferred stock with preemptive rights.…
A: Answer:- Shareholder meaning:- A shareholder is any individual, corporation, or organization who…
Q: Indicate whether each of the following costs incurred by a manufacturer would be considered a…
A: There are two type of cost-Product cost and period cost Product cost-these cost are directly related…
Q: ncome on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 2…
A: As per IFRS If investment in equity shares other than those held for trading is measured at Fair…
Q: Excel Online Structured Activity: Dividend Policy Boehm Corporation has had stable earnings growth…
A: The dividend can be defined as the distribution of earnings to the shareholders of the company. The…
Q: The following information is from the materials requisitions and time tickets for Job 9-1005…
A: A job cost sheet is a document prepared by the entity to determine the total cost that is incurred…
Q: Question 7 ABC Inc., registered with BIR in 2X12, has the following data for the year 2018: Gross…
A:
Q: Crazy Company requires advance payments with special orders for machinery constructed to customers…
A: Advances from customers means the amount of money received by entity from the customers even before…
Q: Aqua has correctly calculated its basic earnings per share (EPS) for the current year. Which of the…
A: For calculated diluted earnings per share, all convertible securities such as employee options,…
Q: If a car selling company asked for ₱240,000 as a down payment for a ₱1.2 million worth of the car,…
A: For calculating the percentage of down payment to total worth of car , we will divide amount of…
Q: Net income after taxes Income Tax Interest Expense Net Sales P18,000 12,000 80,000 620,000
A: To Calculate the Times interest earned formulas to be used: Times interest earned = Earnings before…
Q: An entity shall present all items of income and expenses recognized in a period: I-in a single…
A: Profit and loss is a financial statement that helps in depicting the position of profitability of an…
Q: Problem 5-17 Applying Overhead; Journal Entries; Disposition of Underapplied or Overapplied Overhead…
A: The overapplied overhead cost is calculated as excess of applied overhead cost more than the actual…
Q: Lewis Co. recently hired a new accountant with very limited experience in corporate accounting.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Journal entry Mar. 28: Billed customers Tk 2,500 for cleaning services. Mar. 31: Paid advertising…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: (Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3: 2. On…
A: A partnership is a relationship between individuals who are agreed to share the profit of a business…
Q: A. Ronel is a broker who earns a commission of 3½% of all securities sales that he makes. For the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Under IFRS 9, the cumulative balance of equity as a result of measuring financial assets at fair…
A: The equity account represents the changes in the equity shareholders of the company. The treasury…
Q: On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January…
A: Note discounting: Note discounting means selling or pledging the notes to the bank prior to the…
Q: The following data were available for ABC Trading, which uses perpetual system, at Dec 31, 20X2:…
A: The cost of goods sold can be calculated by adding up net purchases in the beginning inventory and…
Q: Trial balance Salman, capital Advertising expense Accounts payable Sales commission revenue Land…
A: Answer:- Trail balance meaning:- A trial is a basically the list of entire general ledger accounts…
Q: Is a variable costing income statement applicable to service operations? If so, provide a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 16. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available…
A: If investment in equity stock are treated as held for trading then such investments are designated…
Q: Cambridge Corp. has a single class of shares. As its year ended December 31, 2015, the company had…
A: The journal entry is used to keep and make records of the business transaction and these…
Q: The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly…
A: Adjusting journal entry: At year-end when the company finalizes its accounts, any unrecognized…
Q: The following extracts from the DEF Co budget are available. Year ended 30 June 2019 Sales…
A: Cash receipts value from customers can be calculated by adding up sales to opening account…
Q: Define the measurement principle. Select one: O a. Requirement that accounting records should all be…
A: Measurement Principle: It states that the entity should only record the transaction which can be…
Q: 14 15 16 and decided to liquidate their partnership Prior to the final distribution of cash to the…
A:
Q: Classify each item by type of business activity- operating, investing, or financing. Also indicate…
A: Statement of cash flow (CFS) refers to a financial statement of the company which shows the flows of…
Q: What is the latest date that Rafee can cancel the policy and receive a reimbursement of the premiums…
A: Law related to the Long-term care insurance: The person can cancel the policy within 15 days from…
Q: The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:…
A: Introduction: BRS: BRS stands for Bank Reconciliation statement. To reconcile the difference between…
Q: At 1 January 2020, Falmer Co had 15 million £1 equity shares in issue. On 1 April 2020, Falmer Co…
A: Number Amount 01-Jan-20 15 million 15 million 01-Apr-20 2.5 million 2.5 million 17.5…
Q: Please in calculating return on year end capital employed = profit before tax / capital employed.…
A: Return on capital employed = Earnings before interest and taxesCapital Employed
Q: Beach Life Ltd. operates an online booking service restricted to beachfront properties around the…
A: Revenue recognition is the principle which states that revenue can be recognized when the…
Q: You are examining the financial statements of DON JOHN CORPORATION which ends on December 31. DON…
A: Accounting Error: A non-fraudulent inconsistency in the recording of financial transactions is…
Q: company incurs the following costs at various activities levels: Total costs Activity level $ Units…
A: Variable cost per unit using high low method= = (Highest Activity Cost – Lowest Activity Cost) /…
Q: Jameela Corporation reports the following stockholders' equity section on December 31, 2019. Common…
A: The treasury shares are the company's issued share that the company purchase from the market and…
Q: Wha is the general journal
A: General Journal is a financial book in which all the business transactions are recorded in…
Q: 5. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2010. The following are data available…
A: Based on fair value measurement of financial assets on each reporting date, investments in equity…
Q: The Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in…
A: A lease is a contract between the two parties in which one party rents its asset to the other party.…
Q: How much is the unrealized gain at Dec 31, 20X1? 1,000 15,000 50,000 65,000
A: The securities held for trading means those securities that are purchased by the company for a short…
Q: ABC Co assigned P500,000 of its account receivables to XYZ Bank as a security for a 10% loan of…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Calculat ed sales vc ted price p
A: The working table is given as, Note 1: Total Direct Variable Cost I II III IV Estimated sales…
Q: What is the amount of gain (loss) on Dec 31, 20X1, Dec 31, 20X2 and Jan 20X3 respectively?
A: The cost of the shares means the amount that is spent on the purchase of the shares. this cost…
Q: Moss Ltd. has the following activities: creating bills of materials (BOM), studying manufacturing…
A: In the context of the question, we are required to compute the cost assigned to the training…
Q: Real Life Application of the Capital Gains and Losses Rules: I have a client who is in his 70's. in…
A: The upper limit for the deduction of capital loss in a particular year is:-(a) Single or married…
Q: and
A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…
Q: Revenues.. Expenses: Food, beverage, packing. Labor...... Rent (occupancy). General and…
A: Formula: Each line item percentage = ( Line item value / revenues value ) x 100
Q: In preparing its bank reconciliation for the month of February, ABC Company has made available the…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: Kofi Nti Limited issued 12% debenture at discount, redeemable in 4 years. The debenture was issued…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: A piece of machinery costs P50,000 and has an anticipated P8,000 salvage value at the end of its…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Kingdom Corporation has the following.
Step by step
Solved in 3 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?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?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
- 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?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.Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- 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.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- 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.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.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.
