On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 9300 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $14, the corporation declared a 14% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 14% stock dividend on the balance of the retained earnings account?
Q: On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney will pay…
A: The question is based on the concept of Financial Accounting.
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: The journal entries to record the issue of bonus shares and EPS for 2020 and 2021 are presented…
Q: MM Co. had 100,000 shares of ordinary share issued and outstanding at January 1, 2021. During 2021,…
A: Shares are split by 2-for-1. Each share is converted into 2. Total shares outstanding before stock…
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: On January 1, 2021, Pharoah Corp. had 491,000 shares of common stock outstanding. During 2021, it…
A: Here is the summary of transactions done along with the journals:Below are the journals to be passed…
Q: On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase…
A: The company is required to have maximum shares in the market for the growth of the business and long…
Q: Fancher Company has a single class of common stock and a single class of cumulative preferred stock.…
A: Dividend is the amount which is to be paid to the stock holders of an entity. The stockholders may…
Q: On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 317,000 shares of…
A: Calculation of W. Avg Number of shares (For Basic EPS) Calculation No of shares…
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 December 31, 2020, Dow Steel Corporation had 700,000 shares of common stock and 310,000 shares of…
A: Introduction: Earnings per share denotes the fraction of a company's profits that is available to…
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: EPS means net earnings on a single share. Firm use equity funds to generate a profit. EPS show how…
Q: On January 1, 2021, Dodd, Inc., declared a 10% stock dividend on its common stock when the fair…
A: Retained Earnings: Retained Earnings (RE) is a term used to describe the amount of net income that…
Q: Sandhill Corporation had 3,500,000 shares of common stock outstanding on January 1, 2021. On April…
A: Basic Earnings Per Share = (Net Income - preferred dividend) / Weighted Average no. of common shares…
Q: tive, preferred stock were outstanding. (convertible into 40,000 shares of common). No dividends…
A: After distributing the net income to the preference shareholders whatever has been left is divided…
Q: On December 31, 2021, WHITE Company reports the following amounts in its shareholders' equity…
A: The book value per share is calculated as shareholders' equity divided by number of issued and…
Q: During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares…
A: Journal entries No. Date account titles and explanation Debit…
Q: At the beginning of 2019, Hardin Company had 340,000 shares of $10 par common stock outstanding.…
A: 1. oustanding Shares Months Weighted Average Beginning Balance 340000 2 Months…
Q: Rayan Corporation was organized on January 1, 2020, with an authorization of 1,200,000 ordinary…
A: The total number of share premium as of December 31, 2020 = Cost of Treasury shares - Cost of…
Q: On August 15, 2021, EasyMoney, Inc.s Board of Directors meets and declares that EasyMoney will pay a…
A: Retained earnings refers to the account that accumulates the earnings of the company that are not…
Q: At December 31, 2020, the balance sheet of J.R. International included the following shareholders'…
A: Date Account Titles and Explanation Debit Credit Jan'15 Treasury Stock (12,000 shares X $ 17 per…
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: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: Calculation of above requirement are as follows
Q: On January 1, 2021, Blossom Corporation had 980,000 shares of common stock outstanding. On March 1,…
A: Calculation of weighted average number of shares : Outstanding shares on JAN 1, 2021 (980,000 *…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: Calculation of bonus shares issued: Existing no of shares = 36 million Bonus shares proportionate =…
Q: On January 1, 2021, Pharoah Corp. had 491,000 shares of common stock outstanding. During 2021, it…
A: Earnings per share is a financial ratio that represents the value income earned for one share. The…
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: Earnings per share (EPS) is calculated by dividing the net income earned by the Company by the…
Q: Blossom Corporation issued 110,000 shares of $20 par value, cumulative, 8% preferred stock on…
A: Definition: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred…
Q: On January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A journal entry is a record of a firm's business activity that is retained in the company's…
Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Compute the basic and diluted earnings per share for the year ended December 31, 2021: Compute the…
Q: On July 1, 2021, Luke Corp. has 200,000 shares of P100 par common stock outstanding and the market…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…
Q: Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par…
A: Total shareholder includes ordinary share capital, the premium on share capital, and retained…
Q: On July 1, 2021, TJH Corporation has 200,000 shares of P10 par common stock outstanding and the…
A: The stock split leads to change in number of outstanding shares.
Q: During 2022, the corporation had the following transactions and events pertaining to its…
A: Step 1 Journal and ledger is the part of book keeping
Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: recording of journal entry are as follows
Q: On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 307,000 shares of…
A: Basic EPS Numerator Net income $ 2,450,000 Less : Preferred div $ 76,000 Income…
Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…
A: Gain = Sale value of shares sold - Purchase value of shares purchased
Q: Poodle Corporation was organized on January 3, 2021. The firm was authorized to issue 100,000 shares…
A: calculation of paid in capital are as follows:
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: 1. Determination of Journal entries to record issue of bonus shares Date Account title and…
Q: On December 31, 2020, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of…
A: Earnings per share = Net income available to Equity shareholders/weighted average number of shares
Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Net Income $2,100,000 Less: preferred dividend $75,000 Profit available $2,025,000…
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: The dividends are declared from the retained earnings balance.
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: As of December 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and…
A:
Q: Carlmont Corporation is authorized to issue 5,000,000 shares of $2 par value common stock. As of…
A: The treasury stock shares decreases the number of outstanding chares. The dividend is declared for…
Q: On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On…
A: Under the treasury stock method, the common stock are held as treasury stock and they are not…
Q: Whispering Ltd. began its latest fiscal year on January 1, 2020, with 12,000 common shares…
A: The weighted average common shares are the common equity shares outstanding at the end of the year…
Q: On December 31, 2020, Berclair Inc. had 240 millton shares of common stock and 3 million shares of…
A: EPS means earnings per share. It represents the per share amount earned by the common stockholders.
On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 9300 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $14, the corporation declared a 14% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 14% stock dividend on the balance of the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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. 3,370,000On 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.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.
- 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.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?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.
- 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.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. 6.73Monona 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.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?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.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
