Problem #21Shareholders' Equity Transactions and Statement of Financial Position PresentationThe shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below:8% Preference Shares, P250 par, 15,000 sharesauthorized, 5,800 shares issued and outstandingP1,450,000Share Premium-Preference870,000Ordinary Shares, P100 par, 200,000 shares authorized,40,000 shares issued and outstandingShare Premium-OrdinaryRetained Earnings4,000,0002,400,0002,700,000During 2019, the following transactions occurred:Issued 16,000 ordinary shares for P180 cash per share.Purchased 6,000 ordinary shares for the treasury at P200 per share.Shareholders donated 4,000 ordinary shares to the corporation.Sold one-half of the treasury shares acquired last Jan. 23 for P210 perJan. 1023Mar. 214share.Sold the donated shares at P210 per share.Issued 3,200 preference shares to acquire special equipment with afair market value of P1,440,000.14July 15Received subscriptions to 18,000 ordinary shares at P250 per share.Received cash payment from each subscriber for 40% of the ordinaryshares subscription price.Received the balance due on the Sept. 15 shares subscriptions in cashand issued the stock certificates.Sep. 15Oct. 15Nov. 15Closed profit of P522,000 from the Income Summary account toRetained Earnings.Dec. 31Required:1. Set up T-accounts for the shareholders' equity accounts at the beginning of the yearand enter January 1 balances.2. Prepare journal entries to record the foregoing transactions and post to T-accounts.Determine the ending balances for the shareholders' equity accounts.3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financialposition. Problem #15Treasury Stock TransactionsThe Dec. 31, 2018 shareholders' equity section of Refozar Corporation's staternent offinancial position is as follows:Refozar CorporationPartial Statement of Financial PositionDecember 31, 2018Shareholders' EquityShare CapitalOrdinary Shares, P4 par, 200,000 shares authorized,150,000 shares issued and outstandingP 600,000Share Premium375,000P 975,000Total Share CapitalRetained EarníngsTotal Shareholders' Equity365,000P1,340,000Required:Prepare the journal entries to record the following transactions that took place duringJanuary 2019:Purchased 24,000 shares of its own Refozar's stock for P168,000.Sold 4,000 shares of the treasury stock for P9 per share.Sold 14,000 shares of the treasury stock for P6 per share.Sold the rernaining 6,000 shares of treasury stock for P7 per share.Jan. 4102931

A journal entry is the first step in recording financial transactions in the books of business…

Problem #15 Treasury Stock Transactions The Dec. 31, 2018 shareholders' equity section of Refozar Corporation's staternent of financial position is as follows: Refozar Corporation Partial Staterment of Financial Position December 31, 2018 Shareholders' Equity Share Capital Ordinary Shares, P4 par, 200,000 shares authorized, 150,000 shares issued and outstanding P 600,000 375,000 P 975,000 Share Premium Total Share Capital Retained Earnings Total Shareholders' Equity 365,000 P1,340,000 Required: Prepare the journal entries to record the following transactions that took place during January 2019: Purchased 24,000 shares of its own Refozar's stock for P168,000. Sold 4,000 shares of the treasury stock for P9 per share. Sold 14,000 shares of the treasury stock for P6 per share. Sold the rernaining 6,000 shares of treasury stock for P7 per share. Jan. 4 10 29 31

Problem #15 Treasury Stock Transactions The Dec. 31, 2018 shareholders' equity section of Refozar Corporation's staternent of financial position is as follows: Refozar Corporation Partial Staterment of Financial Position December 31, 2018 Shareholders' Equity Share Capital Ordinary Shares, P4 par, 200,000 shares authorized, 150,000 shares issued and outstanding P 600,000 375,000 P 975,000 Share Premium Total Share Capital Retained Earnings Total Shareholders' Equity 365,000 P1,340,000 Required: Prepare the journal entries to record the following transactions that took place during January 2019: Purchased 24,000 shares of its own Refozar's stock for P168,000. Sold 4,000 shares of the treasury stock for P9 per share. Sold 14,000 shares of the treasury stock for P6 per share. Sold the rernaining 6,000 shares of treasury stock for P7 per share. Jan. 4 10 29 31

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 69E: Stock Dividends Crystal Corporation has the following information regarding its common stock: S10...

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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.
Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
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?
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?
Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.
Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?
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.
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.
Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.
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.