prepare the stock activity of backdrop corporation during the year 2021 as a journal entry. sold 2500 shares of treasury stock for $6.25 per share
Q: Find the annual percentage yield (APY) in the following situation. A bank offers an APR of 1.45%…
A: ANNUAL PERCENTAGE YIELD APY indicates the total amount of interest you earn on a deposit account…
Q: On January 1, New York Company borrowed $180,000 to purchase machinery and agreed to pay 5% interest…
A: FUTURE VALUE Future value is the value of an asset at a specific date. Future value is the value…
Q: Argue "in favor" or argue "against" whether to capitalize operating leases?
A: ANSWER : Operating Leases are the short term leases for which the ROU asset and Receivables are…
Q: An insurance firm agrees to pay you $5,089 at the end of 25 years if you pay premiums of $123 per…
A: Internal Rate of Return (IRR) is one of the capital budgeting techniques used to assess the…
Q: A chair manufacturer has established the following flexible budget for the month.…
A: The total cost comprises fixed and variable costs incurred. The variable cost per unit is calculated…
Q: Antigua Company purchased a depreciable asset for $45,000 on October 1, 2015. The estimated salvage…
A: Here the data given is as follows: COST = $45,000 , LIFE = 6 YEARS, SALVAGE VALUE = $9,000, Firstly…
Q: The accounts and balances shown below were taken from ACCCOB2 Company's trial balance on December…
A: ANSWER Current asset are the assets that are expected to be hold or can be easily sold and it can be…
Q: P23-1B (L02,4) (SCF-Indirect Method) The following are Sanibel Corp.'s comparative balance sheet…
A: Please see the answer below: Solution: Statement showing the cash flows by Indirect method for the…
Q: The Stake Division of the Outdoor Lumination Company produces stakes which can be sold to outside…
A: The fixed costs are not incurred for special orders. The variable cost is to be incurred for the…
Q: Quick Producers acquired factory equipment on March 1 of Year 1 costing $39,000 . In view of pending…
A: Depreciation is considered as the reduction of the asset. The deprecation is considered as an…
Q: At how much should Adora sell her property acquired at P6,300,000.00 is she desires a 30% gross…
A: Answer Cost of acquisition of property is P630000000 Desired profit @ 30% Profit =…
Q: Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the…
A: Introduction The phrase actual service cost refers to the increase in a pension scheme obligation's…
Q: The cost of goods sold (Using the FIFO method) $.__________________________ The of cost of the…
A: Cost of goods Sold is the amount of costs which are incurred on the goods which are sold during the…
Q: Calculate the actual plant operating profit/loss for the year.
A: If the applied overhead is more than the actual overhead then the difference considered as…
Q: A company's primary class of stock, which allows shareholders the right to vote in company matters,…
A: it must be understand that there are two types of classes of stock mostly commonly they are known…
Q: Which of the following does NOT indicate the transfer of control over goods and services that…
A: A performance obligation is satisfied when control is transferred to the buyer at a single point in…
Q: 1. MadDog Inc. owns equipment for which it paid $85 million. At the end of 2020, it had accumulated…
A: a. Calculation of Impairment Loss of MadDog Inc. 1. Carrying Value of Equipment at the end of…
Q: Toying With Nature wants to take advantage of children's fascination with dinosaurs by adding…
A: Payback period = Initial cash outflows / Annual cash inflows, Return on average investment =…
Q: Policyholder dividends from a whole life insurance policy are generally tax exempt. In which of the…
A: The correct answer is: (A) The dividend is from a MEC and is received in cash. Policyholder…
Q: Ma1. Question 11. Which of the following is not a catetory found in the Content Pane of Dynamics…
A: Ans : 11 . Option c : Print Print category is not found in content pane of dynamics GP 12. Option…
Q: Sarma Co. oes Jazmine Ltd. a $577,000, 12%, three-year note dated December 31, 2015. Sabrina has…
A: Introduction: Gain on debt restructuring is to be calculated by deducting the fair value of the…
Q: On 30 April 20X2, Marc Company purchased 4,800 shares of Spencer Ltd. for $29 per share plus $480 in…
A: 1. Introduction: a. Under Cost method, Investments will be intially measured and recorded at…
Q: A corporation has a stock option plan it awards to its executives. On January 1, Year 5, the board…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Mahadeus opened an RRSP deposit account on December 1, 2008, with a deposit of $2300. He added $2300…
A: The amount in the account is $10,591.657 =$10,592(Rounded off) Workings:- The deposit of $2,300…
Q: Swifty Corporation purchased a 20% interest in Moss Inc. for $280. This investment gave Swifty…
A: Accounting journal entries are used to document accounting transactions in a company's accounting…
Q: our company is following January to December as accounting year. On 1 July, you paid Rs. 6 million…
A: The prepaid expense is the amount that is not due but has been paid by the company. It is considered…
Q: 2. On February 1, 2023, Marsh Contractors agreed to construct a building at a contract price of…
A: It must be understand that revenue on contracts must be recognized on proportionate basis under…
Q: Pablo Company is considering buying a machine that will yield Income of $3,400 and net cash flow of…
A: The net present value (NPV) of an investment or a proposal is calculated to take decisions on…
Q: Please do general Journal at the attached excel image. a. Dec.1 Jack Simmons, the owner contributed…
A: Journal entry It records all transactions for a business. Transactions are broadly classified as any…
Q: Calculation method to support the answer needed! Sheri is also quite talented with marketing and…
A: Answer:- Partnership meaning:- A partnership is a type of firm where two or more people enter into…
Q: Since not all of the lanolin cream is sold, determine the ending inventory cost for the lanolin…
A: Introduction Sales Value at the Split-Off Point: The joint expenses can be distributed…
Q: The category of equity that tracks the events relating to stockholder transactions is known as:
A: The correct answer is: (C) Paid-in-capital
Q: During a period of steadily rising prices, which of the methods of measuring the cost of goods is…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…
Q: 1. Yellow Co has two processes, Y and Z. There is an expected loss of 5% of input in process Y and…
A: Process costing means when raw material is added in one process and different process are applied to…
Q: onica invested the profit of his business in an investment fund that was earning 2.75% compounded…
A: Basis concept of time value of money has been applied, where amortisation schedule are prepared on…
Q: Nuclear safety devices installed several years ago have been depreciated from a first cost Modified…
A: Annual Worth - The annual worth is the sum of all the advantages and expenses over the course of a…
Q: Richard Co. incurred research and development costs in 2021 as follows: Equipment acquired for use…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Accorsi & Sons specializes in selling and installing upscale home theater systems. On March 1, 2024,…
A: The transaction price is the sum that the client anticipates earning from the sale of goods and…
Q: KA Payroll Related Accounting Assume a weekly payroll of $30,000 entirely subject to…
A: Assume a weekly payroll of $30,000 entirely subject to F.I.C.A. and Medicare (7.65%) taxes, with…
Q: 4. On April 1, 2021, Bleta Corp purchases a call option for $500, which gives Beta the right to buy…
A: The Correct Solution is : a. No entry required
Q: ed and have two children ages 6 and 10. In 2021, Susan's incom ome from tax exempt bonds. The…
A: Tax refers to the mandatory form of charge levied by the authorised government over the income…
Q: What is the net dollar retention of a company in 2022 given the following facts? Customer Upgrades…
A: Net dollar retention is said to be matrix that is used to measure the company performance and it is…
Q: The following information has been taken from ABC Company for the year 2019 Sales revenues 3600,000…
A: The term "cost of goods sold" refers to the direct costs a business incurs when producing the…
Q: Wang Company manufactures and sells a single product that sells for $650 per unit; variable costs…
A: Answer:- Variable cost:- Variable costs are those cost which vary according to the production of…
Q: Retail Company reported the following cash flow information: 1. Acquisition of equipment: P122,000…
A: A cash flow statement indicates cash inflow and outflow information for a particular time period and…
Q: Finished goods inspection 22,600 From the provided schedule of activity costs, determine the…
A: A value-added cost is the costs which is incurred for the purpose of increasing the value of goods…
Q: Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution…
A: Problem Company and Subsidiary…
Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Fisher Apparel Company balance sheet for the year ended Year 1 is as follows: December 31, Year…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: A tire company has sold 25,000 shares of $40 par value, 4% preferred stock to help with new product…
A: Dividend per share is the amount of earnings distributed to each common stockholder's out of the…
Ma1.
6. prepare the stock activity of backdrop corporation during the year 2021 as a
sold 2500 shares of
Step by step
Solved in 2 steps
- 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?Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.On 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.
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.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?Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?
- Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.Monona 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.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.