On December 31, 2020, the Treasury Share account of Jumbo Corporation showed a balance of $490,000. These shares were previously reacquired from ordinary shareholders. On December 31, 2020, Ordinary Share Capital showed a balance of $22,050,000 at $75 par value. On the same date, there were 238,000 outstanding ordinary shares. All subscriptions were fully paid and share certificates were issued. How much was the cost per share of treasury shares upon reacquisition? Round off you answer to two decimal places.
Q: Suppose that the government has a wealth tax at the rate of 2% on the assessed value of wealth.…
A: INTRODUCTION: A wealth tax is a charge based on the taxpayer's market-value-based asset holdings.…
Q: Sales Contribution margin Total direct fixed costs Total operating assets Jan. 1, 2022 Total…
A: The ROI stands for Return on Investment. It is calculated as net income divided by average total…
Q: On 8 August 20x3, alpha Ltd acquired 20000 shares in Beta Ltd (Beta) that gave alpha control over…
A: Fair value is defined as the value which each item fetches when it is traded in the marketplace. It…
Q: Which of the following statements is true? OA. The right-of-use asset is increased by prepaid lease…
A: Right of use asset means the right of the lessee to use the asset. It could be on a property or…
Q: According to COSO, internal control is a:
A: According to COSO: Internal control is not a set of rules because the internal control document…
Q: Alberta Gauge Company, Ltd., a small manufacturing company in Calgary, Alberta, manufactures three…
A: Note: As per our guidelines, we will solve the first three subparts for you. 1. 1. The suggested…
Q: The following note transactions occurred during the year for Towell Company: On Nov. 25, Towell…
A: Interest is an expense which is to be paid to the lender or creditor for making late payment for the…
Q: 4.2. The following information relates to Machine Productive at 31 December 2020: Historic Carrying…
A: When the fair market value of an asset is less than the book or carrying value of asset, the asset…
Q: Q.6 An asset will cost $20 000 when purchased this year. It is further expected to have a salvage…
A: As per our guidelines we can share only first 3 subpart of the given question So here is the…
Q: A 3-year bond with 10% compound rate and P1000 face value yields 8%. Assuming annual compounding…
A: A 3 Year Bond with 10% Annual Compounding rate having face value 1000 Annual Interest = 1000*10% =…
Q: Show solution in good accounting form. a. Assuming there is no separate records maintained, compute…
A: You have posted multiple-pat questions, so s per our policy only first three sub parts are answered.…
Q: XYZ Inc issued 445 convertible bonds - each at a price of 101.95% of the $1,000 face value. At…
A: A bond may be regarded of as an I.O.U. between the debtor and creditor including the loan…
Q: Cash Budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for…
A: Cash budget was an budgets used by the company to plan for its expected payments and receipts of…
Q: Bramble Corp. purchased office supplies costing $7300 and increase Supplies for the full amount. At…
A: Office supplies is a current asset which is purchased for the purpose of using them in the business…
Q: The income statement of Barela Corporation for 2020 included the following items: Interest income…
A: The Question requires us to calculate the cash paid for Salaries during 2020.
Q: Which of the following statements about a forged drawer's signature on a check is true? a.) A…
A: The answer for the multiple choice question and relevant working are presented hereunder : A check…
Q: During 2016, Energy Corp. fully impaired a generation facility that represented 5% of its total…
A: Impairment refers to permanent reduction in the value of the asset. It occurs as a result of any…
Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…
A: Book value and fair value The book value is based on the old old purchase price, from which yearly…
Q: Economic Profit?
A: Economic profit is different from the accounting profit earned, accounting profit is calculated at…
Q: On January 2, 2019, Whistler Company purchased land for $480,000, from which it is estimated that…
A: Depletion refers to the measure which is linked with the depletion amount of the extraction of the…
Q: Accounts receivable arising from sales to customers amounted to $35000 and $51000 at the beginning…
A: Cash flows from operating activities to be reported on the statement of cash flows = Income -…
Q: The income statement of Barela Corporation for 2020 included the following items: Interest income…
A: Cash received from interest means the actual cash received from the interest revenue. This amount…
Q: Rosy, Roland and Robert were partners with capital balances as at year end of P250,000; P350,000;…
A: The question is related to Partnership Accounting. In Partnership Net Income after taxes will be…
Q: Exercise 16-10 (Algo) Cash flows from financing activities LO P3 a. Net income was $475,000. b.…
A: Cash flows from financing activities is one of the section of cash flows statement, it shows all…
Q: Income transferred to a child is not taxable”. Discuss both for and against this statement.
A: Income transferred to a child is not taxable Income transferred to a child may be intentional or…
Q: Current assets: Cash $655,500 Marketable securities 759,000 Accounts and notes receivable (net)…
A: Lets understand the basics. Working capital is a capital required to run a day to day business.…
Q: Justin Mathews is a waiter at the Delixe Lounge. In his first weekly pay in March, he earned…
A: Here discuss about the details of the net pay which are incurred after the whole statutory deduction…
Q: On January 1, 2015, ML Company grants 100 cash share appreciation rights to each of its 500…
A: Number of employees who can exercise their option in 2018 or 2019 = 140+ 150 = 290 Since the…
Q: Units Beginning inventory Purchase (April 3) Sale (April 10) Purchase (April 18) Purchase (April 23)…
A: Under lifo method of inventory units came in last will be sold first. In perpetual method inventory…
Q: The Market Company won a contract to build a shopping center at a price of $300 million. The…
A: In the context of the given question, we are required to compute the revenue to be recognized in…
Q: Crane Company reports the following Inventory Accounts Payable End of Year $24700 $204800. O…
A: Cash paid to suppliers means the amount of money paid to the suppliers for purchasing inventory from…
Q: Employee Gross Pay Karine 3,700 Kelsey 2,100 Dani 3,400 Brooke 2,600 11,800 Total Claim Code 5 4 1…
A: The primary reporting of the business transactions in the books of accounts on daily basis is…
Q: e following was extracted from the accounting records of a trader on 28 February 2015: Extracts from…
A: Solvency Ratio: This ratio is measuring the long term solvency position of the business concern. The…
Q: A company bought a machine for P19,500.00. It has an estimated useful life of 20 years, after which…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is…
A:
Q: On 1 January 2020 Company A acquired a 70% controlling interest the ordinary share capital of…
A: The asset whose fair market value is less than the carrying value is a loss for a company but as…
Q: Use the following three methods to compute the depreciation in columns B, C, and D: (1) double-…
A: It is given in the question that there are three method of depreciation which requires to be…
Q: this period? (Round your answer to 1 decimal place.) Annual growth rate
A: Growth Rate: It is the change / increase in the value of any scale over a certain period of time. It…
Q: National Co., a company with a 25% debt-to-equity ratio, has a weighted average cost of capital of…
A: Current price of the ordinary share = D1 / r-g D1 = Expected dividend / value of next years dividend…
Q: Sweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent…
A: The cash basis accounting system state that, the revenue and expenses should be recognized when cash…
Q: 15. In preparing a trial balance, how many of the above accounts will you list in the debit column…
A: Trial balance refers to a statement or worksheet which show the balance of all debit accounts and…
Q: On April 30, the bank reconciliation of Metlock, Inc. shows three outstanding checks: no. 254, $630;…
A: Introduction: A check that has not been cashed or placed by the payee is considered an outstanding…
Q: Examples: Receive payment in cash for outstanding account receivable Assets Liability Equity…
A: Accounting equation serves as the basis for the double-entry accounting method as it shows the total…
Q: You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and…
A: Book Value: Book value is the accounting worth of an organization's assets less any claims that have…
Q: Question 4 4. Explain “royalty” under the Income Tax Act 1967. Explain and elaborate the answer…
A: Income Tax- Income tax is best defined as the amount of tax levied by the government on the earnings…
Q: Current Attempt in Progress Sunland Company had an increase in inventory of $55200 The cost of goods…
A: Cost of Goods Sold (COGS) refers to the cost allocated to the units of products being sold. It is…
Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts:…
A: Calculation of Total intangible assets that should be reported on December 2021 :- Particulars…
Q: see the answers at bottom of the question
A: Cash flow from financing activities means cash generated for financing the business like the issue…
Q: Net Sales $336,500 Cost of Goods Sold $132,200 $ Gross Margin ($) Operating Expenses Net Profit ($)…
A: Introduction: Net profit: Deduction of all expenses from revenues derives the net profit. Net profit…
Q: You want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for…
A: Present Value Method :— It is method for calculating present Value of All periodical future cash…
Step by step
Solved in 4 steps
- 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. 3,370,000Anoka 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.
- 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.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.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.
- 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.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.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
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.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.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.