On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share capital and 2,000 shares of its P10 par preference share capital for a lump sum of P40,000. At this date, ordinary share is selling for P18 per share and the preference share for P13.50 per share. How much is allocated to preference shares? Your anSwer
Q: During 2019, ABC Company issued 50,000, P100 par value convertible preference shares for P120 per…
A: Step 1 ABC Company issued 50,000, P100 par value convertible preferenceshares for P120 per share…
Q: On June 30, 2021 Jungkook Company issued 1,000 of P10 par ordinary shares and 2,000 of P10 par…
A: Issue value of preference shares = Lumpsum price x Total market value of preference shares / Total…
Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020
A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…
Q: amount of the proceeds should be allocated to Riza's convertible preference share?
A: Ans: The total proceeds are divided between the two different investments in proportion to their…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: Comical Company issued rights to stockholders to subscribe to an additional share of its common…
Q: On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: On Feb. 1, 2019, Patag Corp. issued 5,000 shares of P100 par convertible preference shares for P110…
A: Company can issue two types of shares. One is common shares and other is preference shares.…
Q: In 2019, Blue Corporation issued 15,000 shares for P 110 per share of P 100 par convertible…
A: Conversion of Convertible Preferences Shares to Common Shares According to the accounting procedures…
Q: In 2020, Caroline Company issued for P105 per share, 8,000 shares of P100 par value convertible…
A: Number of ordinary shares to be issued on conversion = 8,000 x 3 = 24,000 shares
Q: During 2021, Lamb Company issued 10,000 shares of P100 par value convertible preference share for…
A: Solution: Nos of common shares issued on conversion of preferred shares = 10000*3 = 30000 shares…
Q: VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization:…
A: Working:
Q: On January, 2019, Chicosci Corporation was incorporated with authorized Ordinary share capital of P…
A: Ordinary share capital refers to the total share outstanding at the par value per share.
Q: On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares…
A: Amount should be credited to share premium preference on February 1, 2021 = Nos of shares issued in…
Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…
A: In case of a company the shareholders are the owners of the company.
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: Capital Contributed = Common Stock + Additional Paid in Capital Common Stock refers to the capital…
Q: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: 1. Total No. of shares issued = 40,000 shares Value of Shares = 40,000 Shares x P100 = P4000,000…
Q: During 2021, FALCON Company issued 50,000 shares of ₱100 par value convertible preference share…
A: Ordinary share capital = No. of preference shares x conversion ratio x par value per ordinary shares…
Q: In 2019, Blue Corporation issued 15,000 shares for P 110 per share of P 100 par convertible…
A: There are two types of shares which can be issued by organisation to raise the fund; 1) Ordinary…
Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…
A: When the shareholder of an entity is given an invitation to purchase more or additional shares of…
Q: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is
A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…
Q: On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300…
A: No. of shares available for subscription = Total authorized to issue - Preference Shares…
Q: Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value…
A: Ordinary shares: These are the shares issued by a company to an outsider. These shares entitle a…
Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…
A: Given that the Kier corporation holds 30,000 shares in Lord company. Kier corporation Rights=…
Q: In 2020, Eklund, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible…
A: Convertible preference shares are preference shares that have the opportunity to be converted into a…
Q: On 1 January 2020, the company "A" S.A. had a common share capital of 2,000,000€, differences from…
A: Date Particulars Amount in Dr. Amount in Cr. 1/5/2020 Ordinary Share Capital A/c To Bank A/c…
Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…
A: Here we can see that ping corporation has purchased 10,000 shares out of 50,000 shares. Therefore…
Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…
A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…
Q: On March 1, 2020, Marla Company issued 20,000 shares of its P10 par value ordinary shares and 40,000…
A: Total market value of ordinary shares issued = No. of ordinary shares issued x selling price per…
Q: On February 1,2020, Neversaynever Corporation declared a bonus issue entitling its shareholders to…
A: Bonus shares are the shares which are issued to the existing shareholders free of charge. These are…
Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…
A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…
Q: During 2021, FALCON Company issued 50,000 shares of ₱100 par value convertible preference share…
A: Ordinary share capital = No. of preference shares x conversion ratio x par value per ordinary…
Q: In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100…
A: Solution: Amount should be credited to ordinary share capital on December 31, 2020 = Nos of…
Q: on March 1, 2021, Riza Corp. Issued 1,000 shares of its P20 par value ordinary share and 2,000…
A: A preference share that is issued on the terms that it is liable to be converted to an agreed number…
Q: On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000 shares…
A: When more than one class of stocks are issued together at a lumpsum price, the lump-sum amount is…
Q: At December 31, 2019 and 2018, New Corporation had outstanding 4,000 shares of P 100 par 12%…
A: Cumulative preference shareholders are paid dividend including the arrears before the payment of…
Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…
A: >Treasury Stocks are the shares that have been repurchased by the company from its stockholders…
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…
A: Solution: Total share premium on Dec 31, 2020 = Share premium - Preference + Share premium -…
Q: ananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Solution Given Number of authorized shares 400000 Jan 5 issued 225000 shares July 28…
Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…
A: SOLUTION- THE COMPANY HAS ISSUED A 1:5 RIGHT ISSUE TO SHAREHOLDERS FOR P25.
Q: On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from…
A: Shareholder’s equity to decrease by = (market value per share - share issue price per share) x No.…
Q: At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6%…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: At December 31, 2019 and 2020, New Corporation had outstanding 2,000 shares of P 100 par 6%…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: answer with calculations re as follows.
Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: In 2019, Cassandra Company issued for P110 per share, 15,000 convertible preference shares of P100…
A: Formula: Ordinary share capital = Total number of ordinary shares x PAR value.
Q: In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible…
A: The conversion of preference shares into ordinary shares will be booked at book value of preference…
How much is allocated to
Step by step
Solved in 2 steps
- 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. 6.73Kent 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. 3,370,000Winona 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.
- 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?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.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.
- 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.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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.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.