On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$18 par value, 87,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 6,500 shares of its own common stock at $40 per share on October 11. b. Sold 1,375 treasury shares on November 1 for $46 cash per share. c. Sold all remaining treasury shares on November 25 for $39 cash per share. 250 $350 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. $ 870,000 291,000 984,000 $ 2,145,000
Q: rporate tax rate is 35 percent (a) Determine the firms market value weight for debt (Enter answers…
A: Cost of capital means the expenditure incurred by a business entity in exchange of the use of the…
Q: Inventory records for Herb's Chemicals revealed the following: March 1, 2024, inventory: 1,050…
A: Under moving average method, inventory and cost of goods sold is valued at moving average cost.
Q: Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023.…
A: The computed difference between the price paid and the par value of common or preferred stock is…
Q: Redhouse & Associates , LLP has net income of $49,000 and the following related items :…
A: The objective of the question is to calculate the net cash provided by operating activities for…
Q: Perit Industries has $125,000 to invest. The company is trying to decide between two alternative…
A: A financial concept called net present value (NPV) aids in determining whether an investment or…
Q: Refer to the previous question. Suppose you later received a letter in the mail with a $100 check in…
A: There arer two methods for the treatment of bad debts expense. Direct write-off methodAllowance…
Q: Which of the following statements about Least Squares Regression is not true ? Least -squares…
A: The objective of the question is to identify the incorrect statement about Least Squares Regression…
Q: Required: Compute the variable overhead spending variances for lubricants and for supplies.…
A: The main purpose of Standard costing is to compare your actual performance with these standards and…
Q: Mecca Copy, a photocopying center located on University Avenue, provided the following data to…
A: Financial statements means trading, profit and loss account, balance sheet, cash flow statement or…
Q: A company has the choice of either selling 600 apples or processing them into applesauce. The…
A: The incremental revenue is the additional revenue earned after additional processing costs incurred.…
Q: Crane Timber Corporation uses a machine that removes the bark from cut timber. The machine is…
A: The management most of the time faces difficulty in deciding whether to replace the old machine with…
Q: ARR exercise proposed 1 ChemEng Company is looking to invest in some new machinery to replace its…
A: Accounting Rate of Return (ARR) is the formula that determines the percentage of annual profit…
Q: The selling and administrative expense budget of Garney Corporation is based on the number of units…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and loss…
Q: Which of the following would probably properly classified as a step cost with respect to the volume…
A: The objective of the question is to identify which of the given costs can be classified as a step…
Q: a. Compute the 2024 consolidated net income before allocation to the controlling and noncontrolling…
A: Combined 2024 revenue918,000+418,0001,336,000Combined 2024 expenses482,000+318,000-800,000Trademark…
Q: Steuben Company produces dog houses. During the current year, Steuben Company incurred the following…
A: Product costs are those costs which are incurred directly and mainly for manufacturing of product.…
Q: The delivery cycle time was: Multiple Choice
A: Delivery cycle time is the span between the acceptance of an order to the delivery of the item to…
Q: Taylor, age 16, is
A: For this year, a child's standard deduction amount is the greater of $1,250, or the sum of $400…
Q: Following are the issuances of stock transactions. 1. A corporation issued 7,000 shares of $10 par…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: Patterson Corporation is considering the purchase of a new piece of equipment, which would have an…
A: Payback period is concept of capital budgeting. Payback period is the period in which initial…
Q: (2) Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago:…
A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…
Q: The average collection period. (The accounts receivable at the beginning of last year totaled…
A: Average Collection Period is a metric used to analyze a company's collection efficiency and also…
Q: Concord Corporation has 48,000 shares of $10 par value common stock outstanding. It declares a 12%…
A: Stock Dividend: It implies the distribution of dividends to the company's shareholders in the form…
Q: Use the following information to complete the chart below, indicating the Calvet Trust's entity…
A: The profit obtained from the sale or disposal of a capital asset, such as securities, real estate,…
Q: Net sales Cost of goods sold Expenses 2021 2022 Common-Size Percentages Profit Percentage (75.30) %…
A: Profit percentage is the amount of profit earned as a proportion of sales.Higher the profit…
Q: The following financial information is from Shovels Construction Company for 2012: Accounts Payable…
A: Introduction:Current Assets:The Assets which can be easily converted in to cash with in a 1 year…
Q: The following data have been provided by Lopus Corporation: Budgeted production Standard…
A: Variable overhead spending variance is calculated by deducting the actual variable overhead costs…
Q: Calculate the Cash Payback Period
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Should the auditor accept management's decision not to report the expenses this year?
A: The question revolves around the auditor's stance on accepting management's decision not to report…
Q: Table 29-5 Reserves Loans Short-term securities O 25. 50. Assets Refer to Table 29-5. This bank's…
A: Financial ratios refer to the measure that is used to compute the ratio of an element related to…
Q: Daniel Delinkquint owes your business $100 on account. He has moved and you have no idea how to…
A: The allowance for doubtful accounts is an estimation based assumption of bad collection portion of…
Q: Following are the issuances of stock transactions. 1. A corporation Issued 2,000 shares of $20 par…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Breezy Company is disposing of equipment that was originally purchased for $584,000 and has $255,000…
A: Sunk cost is the cost that is past cost. This cost has already been incurred and it does not have…
Q: The Bedou - Kwaku Company produces and sells only one product Product J-99. Bedou - Kwaku Company's…
A: The objective of this question is to calculate the break-even point in sales dollars for Bedou -…
Q: Pronghorn Company is constructing a building. Construction began on February 1 and was completed on…
A: Avoidable interest means the interest that would have been avoided in case of expenditure on the…
Q: Assume that TDW Corporation (calendar-year-end) has 2023 taxable income of $678,000 for purposes of…
A: Answer:- Depreciation meaning:- Depreciation is the term for the decline in value of tangible assets…
Q: Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation…
A: The movement of money into and out of a business or financial entity over a given time period is…
Q: Calculate the free cash flow. (Show amour
A: Free cash flow can be defined as remaining portion of cash generated by operating activities after…
Q: Determine the contribution margin in dollars, per unit, and as a ratio. (Rou
A: Contribution margin is the gross margin.It represents the revenue less its variable cost to cover…
Q: Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and…
A: Lets understand the basics.Budget is an estimation of future variables based on past…
Q: Is this a Premium or Discount Bond?
A: "Since you have posted multiple questions with multiple sub-parts, we will provide the solution only…
Q: Required: Using the following categories, Indicate the effects of the following transactions.…
A: The net account receivables are calculated as gross account receivables less allowance for…
Q: Bob can deduct the business expenses to operate his illegal drug business. True O False
A: False. Bob cannot deduct business expenses related to illegal activities, including the operation of…
Q: Hitchcock Exhibit Use the following selected date and additional information from the records of…
A: A financial statement called the cash flow statement (CFS) provides an overview of the flow of cash…
Q: Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2020 with three…
A: Translation adjustments are those adjustments that are made in the procedure of converting the…
Q: Exercise 2-37 (Static) Basic Concepts (LO 2-1, 2, 6) Lillbridge & Friends, Incorporated provides you…
A: Cost accounting is a type of managerial accounting that evaluates both fixed expenses and the…
Q: Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8…
A: Depreciation:Depreciation refers to fall in value of assets. There are various methods to calculate…
Q: At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $630…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Interest revenue on bonds is reported a) as an addition to the Investment in Bonds account b) as…
A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…
Q: Connors Shoe Company is contemplating the acquisition of Salinas Boots, a firm that has shown large…
A: It is the process of making decisions that involve the management of costs to achieve long-term…
Step by step
Solved in 3 steps
- 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.The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.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.
- 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.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 stockChen 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 stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 400,000 shares of common stock at 11, receiving cash. b. Issued 5,000 shares of preferred 2% stock at 90. c. Purchased 150,000 shares of treasury common for 10 per share. d. Sold 80,000 shares of treasury common for 13 per share. e. Sold 20,000 shares of treasury common for 9 per share. f. Declared cash dividends of 1.50 per share on preferred stock and 0.06 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.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.
- 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.Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend?Nutritious Pet Food Companys board of directors declares a cash dividend of $5,000 on June 30. At that time, there are 3,000 shares of $5 par value 5% preferred stock outstanding and 7,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?