-On January 1, 2021, Bell Company had 2,000,000 shares of common stock outstanding and 60,000 shares of 6%, $100 par, cumulative preferred stock outstanding. On April 1, Bell purchased 36,000 shares of common stock as treasury stock for $30 per share. It sold 60,000 treasury shares on Nov. 1, at $45 per share. Net income for 2021 was $9,085,430. Also outstanding in 2021 were stock options giving executives the right to buy 60,000 common shares at $30. On January 1, the market price of the common shares was $35; on July 1, $40, and on December 31, $45. The company's tax rate is 40%. 5 million dollars of 6% bonds were issued at face value on January 1, 2021. Those bonds are convertible into common stock, in a ratio of 1:5 None of them had been converted by December 31 but on September 1, 40% of the stock options were exercised. Required: a. Showing your computations, present in good order Bell's earnings per share for 2021.
Q: answer is not one of my choices, can you help me do it again? These are the answers I was given…
A: First In, First Out (FIFO) is an inventory valuation method makes an assumption that the inventory…
Q: Calculate Ltd was incorporated on 31 January 2020 with authorised capital as: 950 000 ordinary…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: ich ONE of the following should be carried
A: Accepting an engagement as auditor is a job of responsibiity. So before accepting…
Q: Please help what is financial ratio explain with examples
A: The financial ratio is used to compare the financial health of one business organization to those…
Q: Dr. Brown was involved in a friend's business, Mining - co. Dr. Brown was hesitant to get involved…
A: Financial securities are monetary assets that can be traded and have financial value. Securities are…
Q: Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities.…
A: In the field of financial analysis, a statistic known as the internal rate of return (IRR) is used…
Q: What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use…
A: We can use following formula to find the annual effective rate form given APR I = (1 + ( r/n ))n…
Q: 1.Suppose that Ato Daniel Geremu is an employee in World vision Ethiopia. His monthly basic salary…
A: A payroll register is a register that records and contains all payroll information of every employee…
Q: Suppose that all employers in a perfectly competitive industry do not have a preference for…
A: If the firm's employees prefer to discriminate against African Americans, then the firm will likely…
Q: Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabilities Owner's…
A: Statement of owners' equity is the one which is prepared by the entity to show the changes in the…
Q: How do we account for compound financial instruments? What is the difference between the accounting…
A: A compound financial instrument is a security that is composed of two or more underlying…
Q: Given the information shown below, what are the costs for the production labor category for the…
A: The production cost means the sum of all the cost that is incurred during the production of all…
Q: MULTIPLE CHOICE-PROBLEMS The following costs relate to Antonio Industries for the last quarter:…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: (a) Determine the total amount of manufacturing overhead. Manufacturing overhead e Textbook and…
A: Total manufacturing overhead = Factory utilities = $14800 Depreciation on…
Q: A risk-based deposit insurance program is defined as: a. A program that assesses the concentration…
A: Risk-based deposit insurance is insurance with premiums that reflect how prudently banks act when…
Q: Profitability Ratios: Asset Efficiency Ratios: Liquidity Ratios: Solvency Ratios: Stockholder…
A: Financial ratios or accounting ratios is a relative magnitude of two selected numerical values…
Q: Goring Dairy leases its milking equipment from King Finance Company under the following lease terms.…
A: Lease- A lease is a agreement outlining the terms below which one party agrees to rent an asset. In…
Q: Bramble Juice
A: The cost of the supporting department is allocated to the operating segments of the company. The…
Q: Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per hour…
A:
Q: EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year…
A: Production Budget :— This budget is prepared to estimate the number of units produced during the…
Q: arisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of…
A: Differential analysis refers to a technique that is helpful in decision-making after examining the…
Q: Break-Even in Units, Target Income, New Unit Variable Cost, Degree of Operating Leverage, Percent…
A: The amount of profit made from ongoing activities is reported as operating income in the books of…
Q: Prepare the journal entries at December 31, 2020, to record pension expense and related pension…
A: Pension is the amount of money that an individual saves for his or her retirement. It is a…
Q: Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash…
A: A cash budget is a forecast of cash inflows and outflows from the business. It's very beneficial to…
Q: Peak Sports has a beginning inventory of 35 snowboards at a cost of $340 each. During the year, the…
A: The term "cost of goods sold" (COGS) refers to the expenses that are incurred directly in the…
Q: The following were selected from among the transactions completed by Essex Company during July of…
A: Note: As per guidelines we are allowed to solved one question if multiple questions asked. Hence I…
Q: I would like to apply case to prepare profit and loss budget
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Southeastern Paper Company manufactures three products (computer paper, newsprint, and specialty…
A: Activity-based costing (ABC) allocates production overhead expenses to goods in a far more…
Q: On January 1, 20X1, Shaw purchased 100% of the stock of Poe in a transaction that was properly…
A:
Q: [The following information applies to the questions displayed below.] On January 1, Mitzu Company…
A: The journal entries are the first step of accounting to record the transactions of the business. The…
Q: Varsity Supplies & Things is a family-owned store. The business is now approaching the end of the…
A: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash budget is…
Q: Prepare the company’s planning budget for September. 2. Prepare the company’s flexible budget for…
A: Particulars Calculation Amount Planned No.Of courses 4 Planned No.of Students 64 Revenue…
Q: Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation…
A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…
Q: Elton Weiss and Reyna Herrera-Weiss are married and report the following income items: Elton's…
A: Adjusted gross income (AGI) is the gross income reduced by adjustments. These adjustments include…
Q: Use the formula P = FV/(1 + R)N Inez wants to have $15,000 in 2 years. Calculate how much Inez…
A: Inez has to invest $13,316 today to receive $15,000 in 2 years.
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: The flexible budget aids in determining the business's anticipated expenditures, revenues, and…
Q: In 2021, Warehouse 13 had net credit sales of $755000. On January 1, 2021, Allowance for Doubtful…
A: Note: Under Direct write off method, bad debts expense are recorded when company is sure that amount…
Q: Hello - Where does the opening balance of cash come from (how is it derived) in Step 3.…
A: Budgeting - Budgeting is the useful method of making estimation on the basis of past performance.…
Q: The income statement for Sandhill, Inc. is as follows: Sales revenue Cost of goods sold Gross profit…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: kindly, explain more
A: When deciding where to invest there many factors that need to be considered in order to take any…
Q: CHA Cash Accounts receivable Inventory Buildings and equipment Goodwill Total Assets Accounts…
A: Purchase consideration indicates the payment made by the acquiring company to the subsidiary company…
Q: Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, directlabor…
A: Lets understand the basics. For determining mark up, we need to calculate the total cost of job and…
Q: RRSP Marsha had the following income in 2020and 2021 Employment income Business income Interest…
A: The RRSP deduction limit is determined with respect to the lower of 18% of total income or the…
Q: Capital investments can be very risky; they are usually long-term decisions that require large sums…
A: Capital investments refer to the investments in new physical assets by an entity. Capital…
Q: During the first month of operations ended May 31, Big Sky Creations Company produced 40,000…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: BE11.2 (LO 2), AP On May 10, Pilar Corporation issues 2,500 shares of $5 par value common stock for…
A: Common stock refers to the stock that does not have any preferential rights over other stocks. These…
Q: 5. The following accounts were taken from Nash Inc.'s trial balance at December 31, 2025. Net credit…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: charge all his personal expenses to his business. He said that he owns the company anyway.
A: Expenses and revenues are charged in the income statement of the comapny. The expenses and revenues…
Q: Globe Inc. (a public corporation) had a Class 10 undepreciated capital cost (UCC) balance of $12,000…
A: CCA rate for class 10 assets will be 30% CCA = Undepreciated Capital Cost x CCA rate
Q: Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort…
A: The portion of a fixed asset that is considered to have been used up in the current period is…
Step by step
Solved in 2 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. 3,370,000Raun 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.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.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholders
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. Preferred stock subscriptions receivable 50,000 Preferred stock, 10 par, 9% (200,000 shares authorized; 20,000 shares issued)200,000 Preferred stock subscribed (10,000 shares)100,000 Paid-in capital in excess of parpreferred stock40,000 Common stock, 10 par (100,000 shares authorized; 60,000 shares issued)600,000 Paid-in capital in excess of parcommon stock250,000 Retained earnings750,000 During 20--, Gonzales Company completed the following transactions affecting stockholders equity: (a) Received 20,000 for the balance due on subscriptions for 4,000 shares of preferred stock with a par value of 40,000 and issued the stock. (b) Purchased 10,000 shares of common treasury stock for 18 per share. (c) Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d) Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e) Sold 5,000 shares of common treasury stock for 100,000. (f) Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g) Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.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