On January 1, 2020, Arnold Inc. has the following account balances: · Share capital, P10 par, 225,000 issued and outstanding shares: 2,250,000 · Share premium: 1,500,000 · Retained Earnings: 2,000,000 During the year 2020, the following transactions took place: · Acquired 10,000 treasury shares for P50 per share · Reissued 5,000 treasury shares at P60 per share · Reissued 2,000 treasury shares at P45 per share · Net income for the year was P2,500,000 What is the balance of Share Premium by December 31, 2020? a. 1,500,000 b. 2,550,000 c. 1,560,000 d. 1,540,000

On January 1, 2020, Arnold Inc. has the following account balances: · Share capital, P10 par, 225,000 issued and outstanding shares: 2,250,000 · Share premium: 1,500,000 · Retained Earnings: 2,000,000 During the year 2020, the following transactions took place: · Acquired 10,000 treasury shares for P50 per share · Reissued 5,000 treasury shares at P60 per share · Reissued 2,000 treasury shares at P45 per share · Net income for the year was P2,500,000 What is the balance of Share Premium by December 31, 2020? a. 1,500,000 b. 2,550,000 c. 1,560,000 d. 1,540,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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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
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.
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. 190,000
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