What is the amount of increase (decrease) in capital? Matcha Company reported the following changes in all the account balances for 2021, except forretained earnings:Increase (Decrease)Increase (Decrease)CashAccounts payableP(380,000)820,000P790,000Accounts Receivable, net2,400,000Bonds payableInventory1,270,000Share capital1,250,000Investments(470,000)Share premium130,000There were no entries in retained earnings account except for the net income and a divideddeclaration of P190,000 which was paid in the current year.

Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Matcha Company reported the following changes in all the account balances for 2021, except for retained earnings: Increase (Decrease) Increase (Decreasel P(380,000) Cash Accounts payable Bonds payable P790,000 Accounts Receivable, net 2,400,000 820,000 Inventory 1,270,000 Share capital 1,250,000 Investments (470,000) Share premium 130,000 There were no entries in retained earnings account except for the net income and a divided declaration of P190,000 which was paid in the current year.

Matcha Company reported the following changes in all the account balances for 2021, except for retained earnings: Increase (Decrease) Increase (Decreasel P(380,000) Cash Accounts payable Bonds payable P790,000 Accounts Receivable, net 2,400,000 820,000 Inventory 1,270,000 Share capital 1,250,000 Investments (470,000) Share premium 130,000 There were no entries in retained earnings account except for the net income and a divided declaration of P190,000 which was paid in the current year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18P

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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.
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.
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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.
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