PB6. LO 14.3 Tent & Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated ten years ago. It is authorized to issue 50,000 shares of $10 par value 5% preferred stock. It is also authorized to issue 500,000 shares of $1 par value common stock. It has issued 5,000 common shares and none of the preferred shares. Tent & Tarp has the following transactions: Mar. 1 Declares a cash dividend of $3 per share Mar. 30 Pays the cash dividend Jul. 10 Declares a 35% stock dividend when the stock is trading at $15 per share Aug. 5 Issues the stock dividend Journalize these transactions.

PB6. LO 14.3 Tent & Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated ten years ago. It is authorized to issue 50,000 shares of $10 par value 5% preferred stock. It is also authorized to issue 500,000 shares of $1 par value common stock. It has issued 5,000 common shares and none of the preferred shares. Tent & Tarp has the following transactions: Mar. 1 Declares a cash dividend of $3 per share Mar. 30 Pays the cash dividend Jul. 10 Declares a 35% stock dividend when the stock is trading at $15 per share Aug. 5 Issues the stock dividend Journalize these transactions.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 23CE

See similar textbooks

Similar questions

P16.5 The shareholders' equity section of Finley Inc. at the beginning of the current year is as follows: Common shares, 1,000,000 shares authorized, 300,000 shares issued and outstanding $3,600,000 Retained earnings 570,000 During the current year, the following transactions occurred. The company issued 100,000 rights to the shareholders. Ten rights are needed to buy one share at $32 and the rights are void after 30 days. The shares' market price at this time was $34 per share. The company sold the public a $200,000, 10% bond issue at par. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common shares at $30 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. All but 10,000 of the rights issued in item 1 were exercised in 30 days. At the end of the year, 80% of the warrants in item 2 had been exercised, and the remaining were outstanding and in good…
Y8 Use the following information to answer questions 26 to 30 Moira Rose Ltd a company within the entertainment industry was incorporated with an authorised share capital of 500 000 NPV ordinary shares and 300 000 15% preference shares of R7 each. The company’s financial year end is 31 December. The following share transactions were recorded in the books of Moira Rose Ltd since incorporation: • On 2 February 2021, 100 000 ordinary shares were issued to subscribers at R5 per share • On 1 August 2021, 135 000 ordinary shares and 190 000 15% preference shares were issued to the public at R8.50 each and R10 each respectively. • On 31 March 2022, 70 000 15% preference shares were issued at R12.50 each • On 18 April 2022, the share capital: ordinary shares increased by R391 500. These shares were issued at R8.70 each. On 30 June 2022, the directors approved a capitalisation issue of 2 shares for every 5 ordinary shares held at R5.00 per share. On 15 December 2022, the board of Moira…
47 In January 2022, Yoko Corporation, a newly formed company, issued 10,000 shares of its P10 par ordinary shares for P15 per share. On July 1, 2022, Yoko Corporation reacquired 1,000 shares of its outstanding shares for P12 per share. The acquisition of these treasury shares Group of answer choices decreased the number of issued shares. increased total shareholders’ equity. decreased total shareholders’ equity. did not change total shareholders’ equity.
E15.2B (L0 1) (Recording the Issuance of Common and Preferred Stock) National Gas Corporation was organized on June 1, 2020. It is authorized to issue 100,000 shares of 5%, $100 par value preferred stock, and 1,750,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year: June 15 Issued 165,000 shares of common stock for cash at $5 per share.June 30 Issued 25,000 shares of preferred stock for cash at $102 per share.Aug. 15 Issued 20,000 shares of common stock for a factory building. The asking price of the factory building was $150,000; theappraised value of the factory building was $140,000.Sept. 1 Issued 200,000 shares of common stock for cash at $7 per share.Oct. 1 Issued 5,000 shares of common stock to attorneys in payment of their bill of $40,000 for services rendered in helping thecompany organize.Oct. 15 Issued 25,000 shares of common stock for cash at $8.50 per share.Nov. 1 Issued 6,000 shares…
7.] DIY Corporation was planning to used its treasury shares and needs your financial advice on these matters: 7.1Treasury shares were acquired by the corporation at P 200.00 per share.. May the corporation sell them at only P 150.00, when the par value of each share is P 100.00? Explain. 7.2 DIY Corporation plans to used its treasury shares to vote in the meetings and received dividends. Can the corporation be allowed to do these actions?
9. Harvey Corporation shows the following in the shareholders' equity section of its statement of financial position: The stated value of its common shares is $0.25 and the total balance in the common shares account is $50,000. Also noted is that 15,000 shares are currently designated as being repurchased but not yet cancelled. The number of shares outstanding is: A)215,000 B)200,000 C)196,250 D)185,000
481. CHAPTER 5â€”CORPORATIONS: EARNINGS PROFITS AND DIVIDEND DISTRIB88 Thistle Corporation declares a nontaxable dividend payable in rights to subscribe to common stock. One right and $25 entitle the holder to subscribe to one share of stock. One right is issued for each share of stock held. Annette, a shareholder, owns 200 shares of stock that she purchased five years ago for $3,000. At the date of distribution of the rights, the market values were $50 per share for the stock and $25 for a right. Annette received 200 rights. She exercises 160 rights and purchases 160 additional shares of stock. She sells the remaining 40 rights for $1,080. What are the tax consequences to Annette? 482. CHAPTER 5â€”CORPORATIONS: EARNINGS PROFITS AND DIVIDEND DISTRIB89 Gold Corporation has accumulated E & P of $2 million as of January 1 of the current year. During the year, it expects to have earnings from operations of $1,680,000 and to distribute $900,000 in cash to…
3. A corporation issues 500 shares of P50 par ordinary share capital for store equipment. The market value of the store equipment is P35,000 and the market value of the stock is P55 per share. What amount should be charged to the store equipment? a. P 27,500 b. P 10,000 c. P 25,000 d. None of the choices e. P 35,000 my classmates got different answers. Some answered a, c, and e
A corporation has 50,000 shares of P28 par value stock outstanding that has a current market value of P150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a. It will not change at all b. P112.00 c. P7.00 d. P37.50 e. P600.00 Kindly give me a step-by-step computation
12. On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total Share premium was P1,500,000. What should be the balance in Funk Company’s Ordinary share account after the share split is effected? Group of answer choices 20,000,000 10,000,000 2,000,000 25,000,000
EB9. Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
6) On 1/18/20, Ehrlich Inc. purchased 30,000 shares of the common stock of XYZ Co. for $16 per share. Ehrlich’s ownership represents 10% of XYZ’s total shares. On 6/15/20, XYZ Co. paid dividends of $3.00 a share. On 12/31/20, the fair market value of the XYZ stock was $20 a share. On 3/3/21, Ehrlich sold 10,000 shares of XYZ stock for $21 per share. On 6/15/21, XYZ Co. paid dividends of $3.50 a share. On 12/31/21, the fair market value of the XYZ stock was $21 per share. Instructions: Prepare the 6 journal entries that Ehrlich would make during 2020 and 2021 to account for its investment AND determine the amount of the investment in XYZ that would be shown on the balance sheet at 12/31/20 and at 12/31/21.