n 2021, wow company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% down-payment. What is the amount of the company’s legal capital in 2021?
Q: What amount should Billy record as share in income of JoeI for the year ended December 31, 2020?
A: Company gets the control over to another company by way of purchasing the shares of another company…
Q: 2. The following are the common sources of share premium, except Group of answer choices a. Excess…
A: Share Premium is the amount received that is in excess of the par value of the stock. Sometimes it…
Q: Kiro Corporation acquired a real estate located in Manila City at the beginning of 2020 for a total…
A: Comment- Multiple questions asked. Acquisition cost- The cost of acquiring a fixed asset, another…
Q: project requires an initial investment of P300,000 on equipment. The project will generate sales…
A: Salvage value of equipment 0 as it will be sold at book value that is 300000, so no depreciation…
Q: he Break Division
A: Operating income is used to calculate the profits or the entity's cash flow. A residual is an amount…
Q: On April 1, 2020, Car Company purchased 25,000 ordinary shares of Way Company at an amount which…
A: The investment made in other company is recorded as investment on asset side of the balance sheet.
Q: . From the following balances taken from the books of jakson and watson Ltd. for the year ending…
A: The profit a corporation generates after subtracting the costs of making, selling, and providing…
Q: Until its involvement as Enron’s auditor, Arthur Andersen was recognized as one of the most…
A: Financial statement fraud refers to the willful misrepresentation of financial statements by one or…
Q: Assuming the excess of acquisition cost over the underlying equity acquired is attributable to a…
A: The answer for the multiple choice question and relevant working are presented hereunder : Gray…
Q: how did you get these numbers ? Year 2022: Weighted-Average accumulated expenditure Date Amount…
A: Solution: Weighted average accumulated expenditure is determined by = Amount of expenditure * Period…
Q: Letty Company's bank statement for the month of April included the following information: - bank…
A: Bank reconciliation is the process of tallying between bank balance as per bank statement and bank…
Q: During 2021, Albert redeems qualifying Series EE savings bonds for $6,000 - - c $2,000 interest and…
A: Bonds- A bond indenture is a legal written document that describes the characteristics of bonds,…
Q: Data concerning Sotero Corporation's single product appear below:…
A: Following data are given for the required solution: Contribution margin per unit = $84 Increase in…
Q: ne Atlantic Company sells a product with a break-even point of 4,247 sales units. The variable cost…
A: Break even point in units= fixed cost/ contribution per unit 4247 = $110,422/contribution margin per…
Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…
A: Cash receipts means the amount of cash that is to be received by the entity from sale, services or…
Q: Find a company that committed a change of accounting principle/estimation or error
A:
Q: A department store paid $51.23 for a wine set. Overhead expense is 24% of the regular seling prce…
A: The Operating Profit is the excess of Sales Revenue over Operating Expenses and Operating loss if…
Q: The Gypsy Corporation has the following portfolio of investment securities (designated at fair value…
A: Unrealized Gains It is a theoretical benefit which exists on paper, coming about as a result of an…
Q: The net income reported on the income statement for the current year was $211,300. Depreciation…
A: The cash flow from operating activities include the cash flow from day to day activities of the…
Q: rmine (a) the current ratio and (b) the
A: Answers: a) Current Ratio 2.4 b) Quick Ratio 1.6
Q: Selected current year-end financial statements of GENESIS Corporation follow. All sales were on…
A: (Note: Since you have posted a multi-part question, we will solve the first 3 sub-parts. For the…
Q: From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March…
A: The profit a corporation generates after subtracting the costs of making, selling, and providing…
Q: What is the direct labor rate variance
A: Solution: Direct labor rate variance is computed as = (SR - AR) *AH Where SR = Standard rate AR =…
Q: Zahra Co. makes and sells a single product. For ench one unit of product, 2 meters of Material are…
A: Lets understand the basics. Management prepares the master budget and other budget based on the…
Q: Bramlett Plc is considering a new project, code named PJ6. This project requires an initial…
A:
Q: On April 1, 2028, A Company issued a P 9.000,000 non-interest-bearing note due March 31, 2031, for a…
A: Interest expense = P469,112
Q: Define the terms assets and liabilities and give examples of each
A: Assets means anything which is owned by business and used in business. Liabilities means which the…
Q: Why is it necessary to evaluate the attributes of audit evidence? Explain
A: The answer for the question on evaluation of the attributes of audit evidence is discussed hereunder…
Q: A company reported the following information on December 31, 2021: Preference share, P100 par…
A: Total shareholders' equity is the amount of funds of the shareholders outstanding in the statement…
Q: A firm plans to depreciate a five year asset in the next planning period. The statements that will…
A: Depreciation is the decrease in the value of asset due to use, passage of time and obsolescence. It…
Q: 10. Which of the following statements is correct concerning legal capital? Group of answer choices…
A: LEGAL CAPITAL IS THE CAPITAL CONTRIBUTED BY SHAREHOLDERS COMES FROM SALE OF SHARES OF STOCK .…
Q: 21. During 2019, Company A had net credit sales of Php 600,000. Its Accounts Receivable and…
A: The aging method is used to estimate the amount of uncollectible accounts receivable. The technique…
Q: 5-Calculate Work Opportunity Work Tax Credit from the following information Employer Z has four…
A: The concept of Work Opportunity Work Tax Credit is a federal tax credit which is being made…
Q: A) The Section 1231 Gain and Section 1231 Loss rules and the Section 1245 Depreciation Recapture…
A: A business entity is an organization set up by a person or multiple persons who agree to carry on…
Q: Kiro Corporation acquired a real estate located in Manila City at the beginning of 2020 for a total…
A: Initial Cost of Assets: - Initial cost of assets is the purchase price of the assets including other…
Q: From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March…
A: Gross profit is the profit a company makes after deducting the costs of manufacturing, selling, and…
Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…
A: The investment is valued under the fair value method if the investment is in less than or equal to…
Q: Identify types of costs and explain their accounting. E2.20 (LO 1) Wu-Li Corporation incurred the…
A: Direct material, direct labor and manufacturing overhead are the part of product costs which are…
Q: QUESTION 20 The Section 1231 Gain and Section 1231 Loss rules and the Section 1245 Depreciation…
A: The Correct answer is TRUE. Explantion : Section 1231 gain : 1. Section 1231 gain is a…
Q: Onix Manufacturing Company Inc uses direct labor hours in its predetermined overhead rate. At the…
A: Lets understand the basics. Overhead rate is calculated to applied on actual output using below…
Q: John Wells, CPA, is planning the audit of CVG Services Inc. As a result of his risk assessment…
A: Events or situations that imply an incentive or motivation to conduct fraud or give a chance to…
Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall…
A: Number of days' sales in receivables is the number of days required to get collection from accounts…
Q: Alpha Ltd makes a range of products all of which follow a similar production process and have the…
A:
Q: AL the beginning of the current year, CFAS Company declared a 10% share dividend. The market price…
A: A stock dividend is a dividend paid to shareholders in the form of additional shares in the company.…
Q: Why the prospect theory is important
A: Introduction:- Prospect theory is very important because it elaborates how we understand and value…
Q: Part III. Accrued Expense A business enterprise pays weekly salaries of P6,000 on Friday for a…
A: Given that, Weekly salaries = P6,000 Days in week = five Accrued expenses are those expenses which…
Q: E2.29 (LO 2) Mozena Corporation manufactures a single product. Monthly production costs incurred in…
A: Variable costs remains same in per unit but varies in total with the production .If the production…
Q: Air corporation has the following projected sales: P958,450.00 (October) P1,001,515.00 (November)…
A: Cash budget is one of the important budget being prepared in the business. It shows expected cash…
Q: Q66. A, B and C were partners in a firm sharing profits in the ratio of 2:2:1. Cwas guaranteed to be…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: * 0O T # 3 la Uni X L Grades for Cristian Catala: 22s X WP Ch7quiz with TF5 WP NWP Assessment Player…
A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…
In 2021, wow company issued 1,000,000 no-par value ordinary shares for P1.15 per share. The stated value of the shares is P1. Also, during the year, some potential shareholders of the company subscribed for 800,000 of the same ordinary shares for P1.20 per share and made a 40% down-payment. What is the amount of the company’s legal capital in 2021?
Step by step
Solved in 2 steps
- 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.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
- 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.Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.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
- Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.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.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000