On January 22, Erin Corporation issued for cash 33,000 shares of no-par common stock at $45. On February 14, Erin issued at par value 10,000 shares of preferred 4% stock, $50 par for cash. On August 30, Erin issued for cash 28,000 shares of preferred 4% stock, $50 par at $55.
Q: Discuss three key theories that support why corporate firms pay dividends.
A: in this question, we will discuss the theories that support corporates firms pay dividends.
Q: Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has…
A: Total variable expenses$132,000Number of units 13,200Variable expenses per unit ($132,000…
Q: Explain the concept of cash flow statement and its importance in assessing a company's liquidity and…
A: The cash flow statement is a type of financial statement that details a company's cash inflows and…
Q: In 2022, Bianca earned a salary of $164,000 from her employer. If required, round your answers to…
A: Lets understand the basics.In USA, social security tax is collected in order to support retirement,…
Q: equired: 1. Compute the product margins for the B300 and T500 under the company’s traditional…
A: 1. The product margins under traditional costing are:B300T500TotalSales…
Q: What was the change in Cash?
A: Non-Current Assets are assets held by the organization for more than one accounting period for the…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: Under FIFO method the oldest products in inventory have been sold first.Under LIFO method the newest…
Q: Required a. Prepare common size income statements for each company. b. One company is a high-end…
A: Common-size income statement denotes every cost and profit item as a percentage of sales or revenue…
Q: The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000.…
A: Average rate of return = Estimated Average annual income / Average investment
Q: Best, Inc. uses a standard cost system and provides the following information. (Click the icon to…
A: Variance analysis compares a company's expected expenses or behavior to its actual statistics and…
Q: Problem 3-39 (LO. 1, 2, 3, 4, 5, 6) Charlotte (age 40) is a surviving spouse and provides all of the…
A: Taxable income refers to the portion of an individual's or entity's income that is subject to…
Q: Dunnsmore Company reported cost of goods sold of $318,450 on its 20X1 income statement. Other…
A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…
Q: Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: Daniels Company is owned and operated by Thomas Daniels. The following selected transactions were…
A: Lets understand the basics.As per accounting equation, total assets are always equals to total…
Q: Taxable income $0-$9,525 $9,526$38,700 $38,701-$82,500 $82,501-$157,500 $157,501-$200,000 $200,001 -…
A: Lets understand the basics.Tax liability always gets calculated based on the taxable income. Taxable…
Q: Provide the key factor auditors will have to review when deciding on the inherent risk within the…
A: Answer:- Inherent risk meaning:- The risk created by a financial statement inaccuracy or omission…
Q: Using the information above, prepare a balance sheet as of December 31, 2022. (Hint: Solve for the…
A: BALANCE SHEETBalance sheet is one of the Important Financial Statement of the Company. Balance sheet…
Q: [The following information applies to the questions displayed below.] The following information is…
A: The journal entries are prepared to keep the record of day-to-day transactions of the business on…
Q: Data for October are shown in the following table. Conversion costs are allocated based on the…
A: Information on cost per unit is required in order to determine price which should be charged from…
Q: Blossom Home Improvement Company installs replacement siding, windows, and louvered glass doors for…
A: Net realizable value (NRV) is the difference between the estimated selling price of an asset and any…
Q: . If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost…
A: Manufacturing cost is the total of direct material,direct labor and manufacturing overhead.…
Q: This page shows days 1-16 of each month. Day of Month Jan 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16…
A: The penalty is calculated by multiplying the Unpaid tax amount by the Interest rate with the time.…
Q: Data table Oct 1 Receipts Oct 31 Oct 1 Acquisition Oct 31 Payments Cash 128,000 668,800 Payments…
A: Cash Flow Statement -Statement of Cash Flow shows inflow and outflow of cash during the financial…
Q: Assume Nike has a contribution margin on its running shoes of $50 pe shoe and on its t-shirts a…
A: Lets understand the basics.Contribution margin ratio is a ratio which shows contribution margin…
Q: Prepare a CVP income statement for the quarter ended March 31, 2022
A: SolutionCPV statement is a internal report. Which is used to analyze the variable cost and fixed…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: Under FIFO method the oldest products in inventory have been sold first.Under LIFO method the newest…
Q: The trial balance of The Utopia Laundromat at December 31, 2018, the end of the current fiscal year,…
A: Hi studentSince there are multiple questions, we will answer only first question.…
Q: Stock Dividend Augusta Corporation reported the following information: 50,000 shares of $4 par value…
A: Stock Dividend -Stock Dividend is issued by the company from the retained earnings accumulated by…
Q: Paper Bright Industries uses flexible budgeting to assess budgeted expectations against actual…
A: Flexible budget is the one which includes the recording of both fixed and variable costs at…
Q: Power-To-Spare, Inc. makes a smartphone case that includes a battery that extends the operating life…
A: Product costs:- Product costs are those which are incurred in the production of goods. This shall…
Q: Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the…
A: Individuals, corporations, and organizations all benefit from financial advantages or disadvantages…
Q: Pizana Computer Company has been purchasing carrying cases for its portable con to production at the…
A: In this question, we will make the differential analysis for determining that carrying cases is…
Q: The local ice cream shop sells single-scoop cones for $2.30 each. Its variable costs include the ice…
A: The variable costs are the costs that changes with change in level of production. The contribution…
Q: owner equity
A: In this question, we need to prepare the Statement of Owners Equity for the year ended June 30.…
Q: For which of the segments would information have to be disclosed in accordance professional…
A: Segment information is to help users of financial statements better understand and make more…
Q: Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the…
A: An expenditure that won't be incurred if a specific activity is not carried out is called an…
Q: In 2020, Natural Selection, a nationwide computer dating service, had $522 million of assets and…
A: The entity's times interest earned ratio reveals its ability to pay its debts. A higher Times…
Q: Pharoah Industries produces and sells a cell phone-operated home security control. Information…
A: Contribution margin analysis is an important tool used in CVP analysis. Contribution margin is the…
Q: (a) How large a sample would be needed to estimate the true proportion of jets with the wiring…
A: To estimate the true proportion of jets with the wiring problem, we can use the formula for…
Q: Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The…
A: Given that :Single order from Interstate Trucking for 1700 custom seat cushions .Order produce in 5…
Q: Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the…
A: Job order costing system is used for customer specific jobs. These jobs are heterogenous in nature.…
Q: A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED…
A: Sales can be made on cash or on account. In case of cash sales the cash is collected at the time of…
Q: The cost of the automobile is $20,000 including HST. The car is driven for a total of 26,000 km…
A: To calculate the minimum taxable benefit for the employee's personal use of the car, we need to…
Q: Current Attempt in Progress The following financial information (in millions except for per share…
A: Earnings per share - Net Income / No. of Common stockprice-earnings - Market Value per share /…
Q: a. b. 12/31/23 Retained Earnings $ 2023 Net Income $ over/under over/under
A: Understated inventory by $150 for the year ended 2022.Understated inventory by $350 for the year…
Q: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest…
A: Given that Halep Inc. borrowed $30,000 from Davis4-year note payable stating the interest rate was…
Q: epsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and Pepsi beverages, had the…
A: The current ratio measures the organization's ability to meet the short-term liabilities due within…
Q: Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production…
A: Variable costing is a managerial and cost accounting concept that eliminates fixed manufacturing…
Q: Complete the "Cost Reconciliation Schedule" part of the production cost report. Cost Reconciliation…
A: Lets understand the basics.Equivalent cost per unit calculate by the entity in order to allocate…
Q: Calculate the equivalent units of ABC Company for the month of June. (100% materials, 40%…
A: Process Costing Operation costing method employed to determine the value of a product at each…
Step by step
Solved in 3 steps
- 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.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.A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the transaction would include which of the following? A. debit of $4,000 to common stock B. credit of $20,000 to common stock C. credit of $40 to common stock D. debit of $20,000 to common stock
- STOCK SUBSCRIPTIONS Juneau Associates had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 105,000. (b) Received subscriptions for 5,000 shares of 15 par, 8% preferred stock for 80,000. (c) Received a payment of 55,000 on the common stock subscription. (d) Received a payment of 40,000 on the preferred stock subscription. (e) Issued 40,000 shares of 1 par common stock in exchange for a truck with a fair market value of 48,000. (f) Received the balance in full for the common stock subscription and issued the stock. (g) Received the balance in full for the preferred stock subscription and issued the stock. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.PAR AND NO-PAR, COMMON AND PREFERRED STOCK Valdez Company had the following stock transactions during the first 5 years of operations: (a) Issued 24,000 shares of 1 par common stock for 26,000 cash. (b) Issued 18,000 shares of 1 par common stock for 18,000 cash. (c) Issued 3,000 shares of 10 par, 7% preferred stock for 30,000 cash. (d) Issued 4,500 shares of 10 par, 7% preferred stock for 46,500 cash. (e) Issued 1,800 shares of no-par common stock for 10,475 cash. (f) Issued 1,100 shares of no-par, 7 preferred stock for 32,000 cash. REQUIRED 1. Prepare general journal entries for these transactions, identifying each by letter. 2. Assume that stock transactions a, b, and c occurred in year 1. The amount available for dividends at the end of year 1 is 12,600. Prepare the dividend allocation between the preferred and common shares in total and per share for year 1.
- STOCK SUBSCRIPTIONS Athletics West had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 118,000. (b) Received subscriptions for 5,000 shares of 18 par, 7% preferred stock for 92,000. (c) Received a payment of 59,000 on the common stock subscription. (d) Received a payment of 46,000 on the preferred stock subscription. (e) Issued 60,000 shares of 1 par common stock in exchange for a truck with a fair market value of 66,000. (f) Received the balance in full for the common stock subscription and issued the stock. (g) Received the balance in full for the preferred stock subscription and issued the stock. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity accounts had the following balances: Common stock subscriptions receivable 5,000 Common stock, 5 par, 12,000 shares 60,000 Preferred stock, 10 par, 4%, 4,000 shares 40,000 Common stock subscribed, 5 par, 3,000 shares 15,000 Paid-in capital in excess of par-common stock 4,000 Retained earnings 35,000 Prepare the stockholders equity section of the balance sheet.PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during its first 5 years of operations: (a) Issued 25,000 shares of 1 par common stock for 25,000 cash. (b) Issued 20,000 shares of 1 par common stock for 22,000 cash. (c) Issued 2,000 shares of 50 par, 8% preferred stock for 100,000 cash. (d) Issued 1,000 shares of 50 par, 8% preferred stock for 51,500 cash. (e) Issued 2,500 shares of no-par common stock for 11,875 cash. (f) Issued 1,500 shares of no-par, 7 preferred stock for 72,000 cash. REQUIRED 1. Prepare general journal entries for these transactions, identifying each by letter. 2. Assume that stock transactions a, b, and c occurred in year 1. The amount available for dividends at the end of year 1 is 26,000. Prepare the dividend allocation between the preferred and common shares in total and per share for year 1.
