Loving Company provided the following information on December 31, 2020: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000; Treasury shares - 250,000; Preference share - 1,750,000; Ordinary share - 400,000; Total costs and expenses - 7,800,000; Retained earnings, January 1 - 1,000,000. The total shareholders' equity on December 31, 2020 is
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Preference shares-Cumulative These are the shareholders having right to receive dividends if…
Q: Stowe Company’s December 31, 2020, trial balance includes the following accounts: Investment in…
A: STOWE COMPANY Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Common stock…
Q: The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital Preference…
A: The purpose of making the Balance Sheet or the Statement of Financial Position is to present the…
Q: San Miguel Corporation provided the following balances on December 31, 2021: Accounts payable…
A: Formula: Ending retained earnings = Beginning retained earnings + Net income - dividends paid.
Q: On December 31, 2022, Voice Company had 500,000 ordinary shares issued and outstanding, 400,000 of…
A: SOLUTION- COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES - DATE NUMBER OF SHARES MONTHS…
Q: On December 18, 2020, UNO Corporation issued 5,250 ordinary shares, par P30 for P58 per share. At…
A: Paid in capital in excess of par = Issue price per share - Par value per share = P58 per share - P30…
Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…
A: You have posted more than one unrelated questions, so as per our policy only first question is…
Q: At December 31, 2020, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager…
A: Diluted earnings per share = Net Income /(Weighted average number of ordinary and dilutive…
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: Dividend: It is the distribution of profits to its shareholders when a corporation makes profit .
Q: A partial list of the accounts and ending account balances taken from the post-closing trial balance…
A: Shareholders Equity Equity held by shareholders refers to the sum that a company's founders have…
Q: The equity section of Gannon Oilfield Corporations balance sheet at December 31,2019 is shown below:…
A: Average price received for each issued preferred share = Issued and Outstanding preferred capital /…
Q: Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share…
A: Preferred Common Total 2018 arrears $560,000 ($4 X 140,000 shares) - $560,000 2019…
Q: The ABC Company began operations in January 2018 and reported the following results for each of its…
A: Introduction: Preference share holders are those capital providers for the company who receives…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: Shareholders' equity is the sum total of all the money which belongs to the owners of a company. It…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: Kari Company provided the following information on December 31, 2020: Share premium - 9,000,000;…
A: Step 1 Stockholders' equity is the amount of assets remaining in a business after all liabilities…
Q: Elston Limited had the following equity accounts on January 1, 2020: Share Capital—Ordinary ($5 par)…
A: Answer - Part 1 - Journal Entries Date Particulars Debit Credit…
Q: The total shareholders' equity on Decembe
A: Given that: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000; Treasury…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares,…
A: Formula: Total dividends = Preferred dividends + Ordinary dividends
Q: ABS Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: First, calculate the diluted effect on stocks: Stock option dilluted effect=Share option…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: No. of shares issued from donated shares = No. of donated shares x 1/2 = 20000 shares x 1/2 =…
Q: On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Share premium from Jan. 12 transaction = (Issue value per share - par value per share) x no. of…
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: SOLUTION- CUMULATIVE PREFERENCE SHARES ARE REGULAR PREFERENCE SHARES WITH ONE ADDITIONAL BENEFIT.
Q: At the end of Malasia Inc.'s third fiscal quarter in 2020, the shareholders' equity section of the…
A: SOLUTION- TOTAL SHAREHOLDERS EQUITY- ITS REPRESENTS THE NET WORTH OF A COMPANY , WHICH IS THE…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: No. of shares issued from donated shares = No. of donated shares x 1/2 = 20000 shares x 1/2 =…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: What should be reported as total shareholders’ equity on December 31, 2020?
A: Total Shareholders' equity computation includes: a) Outstanding shares b) additional paid up…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: 1) The total amount of dividends on preference and ordinary shares. 2) The Total shareholders’…
Q: Presented below is information related to Alligator Corporation for 2019. 1. On March 1, Alligator…
A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three questions are…
Q: Loving Company provided the following information on December 31 , 2020 : Share premium - 9,000,000…
A: The shareholders' equity section represents the contribution made by the owners of the company. It…
Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: The total shareholders' equity on December
A: Given that: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000; Treasury…
Q: Pluto Company began operations on January 1, of 500,000 preference shares of P5 par value of which…
A: Contributed Capital is the amount a company receives on the account of issue of common and preferred…
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…
A: Share premium (opening)=Preference+Ordinary=P 160,000+P 600,000=P 760,000
Q: On December 31, 2021, the statement of financial position of FRUITS Company showed the following…
A: A non-participating preferred share, Non-Participating Preference shareholder is only entitled to…
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…
A: Effect of April 30=Number of shares×Per share value-Par value=1,000×P 25-P20=5,000
Q: The accounts below appear in the December 31, 2020 trial balance of A Company: Authorized share…
A: Shareholders equity of the business means total amount that is attributable to the shareholders of…
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference…
A: 1. Share Premium - Share Premium is the amount received by the company over and above the par value…
Q: The total shareholders' equity on December 31, 2020 is __________.
A: Given information is: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000;…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Loving Company provided the following information on December 31, 2020: Share premium - 9,000,000;…
A: Stockholders’ equity: It refers to the residual amount of assets that are available to the company’s…
Q: On December 31, 2020 and 2021, Jimenez Corporation had 100,000 shares consisting of 90,000 shares…
A:
Q: The following is a list of selected account balances taken from the December 31, 2020, general…
A: The paid-in capital is the amount of capital that the investors have paid to the company in exchange…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity…
A: Answer :For this problem we have to record all transaction in Journal entry format.
Loving Company provided the following information on December 31, 2020: Share premium - 9,000,000; Accounts payable - 1,000,000; Sales - 10,000,000; Treasury shares - 250,000; Preference share - 1,750,000; Ordinary share - 400,000; Total costs and expenses - 7,800,000;
Step by step
Solved in 2 steps
- 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?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.
- 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%.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. 6.73Roseau 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.
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- 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.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.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?