Problem One: On January 1, 2016, A company issued 100,000 cumulative preferred shares with a stated dividend of $3.00 and received proceeds of $8,500,000. Buyers of the preferred shares also received a detachable warrant with each share purchased. Each warrant gives the holder the right to buy one
Q: Calculating Interest Using 360 days as the denominator, calculate interest for the following notes u...
A: Interest is calculated on the original principal amount. interest is the cost of money which borrowe...
Q: The portion of an entity’s cash account that is held as a compensating balance must be aggregated wi...
A: A compensating balance refers to the minimum portion of an entity’s cash account that a borrower agr...
Q: Prepare journal entries relating to the stock option plan for the years 2020, 2021, and 2022. Assume...
A: Introduction: Shares are units of equity ownership in a firm. For certain businesses, shares exist a...
Q: Using the indirect method, calculate the amount of cash flows from operating activities from the fol...
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the...
Q: Sydney Ltd repaired a customers' washing machine and charged the customer $500 which the customer pa...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: The business type of this company is food services industry. Give me an analyzation or interpretati...
A: Operating cycle: The operating cycle indicates the length of the period required for a business to m...
Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a. reclassif...
A: A financial asset is a liquid asset whose value is derived on a contractual right or ownership claim...
Q: How can data analysis be used to identify stakeholders?
A: Stakeholder analysis involves the study of identifying, collecting, and analyzing data on different ...
Q: Knox Corp has a selling price of $18, variable costs of $13.86 per unit, and fixed costs of $23,500....
A: The question is based on the concept of Financial Management. Contribution Margin is the difference ...
Q: he following shareholders’ equity accounts are included in the statement of financial position of CO...
A: Retained earnings are the cumulative amount of net income that the corporation has earned since it i...
Q: Net income for Mory Company for the years 2021 and 2022 is shown below. An audit of the accounts, ho...
A: Answer) Calculation of Correct Net Income for the year 2021 2021 Net Income After Tax ...
Q: Cochran Corporation, Inc. has the following income statement (in millions): COCHRAN CORPORATION, INC...
A: Lets understand the basic. Net profit margin is a margin created on the sales. In other words it is ...
Q: An Individual nold the folowing annnta thin year. Sala price Cost Solling cont Painting. .$2,000 $ 3...
A: Answer Capital gain:- Profit realised on the sale of long-term asset that has increase in value dur...
Q: Question 5 The following is the Trial Balance of Maple Union Berhad at 31 December 2021. DR CR RM RM...
A:
Q: (a) Indicate the missing amount for each letter. Case 1 Direct materials used $9,700 24 Direct labor...
A: Total Manufacturing Cost = Direct Material + Direct Labour + Factory Overheads Cost of Goods Manufac...
Q: ABC Corporation has the following information about its single product: Selling Price per unit ₱ 20 ...
A: Lets understand the basics. Degree of operative leverage indicates the change in net income if chang...
Q: Required: a-1. Would you be willing to pay more than $200,000 for the restaurant near the campus? ...
A: Goodwill is an intangible asset of the company which have no physical existence but will increase th...
Q: Interest income earned from maintaining bank accounts are tax-free: True False
A: As nothing is mentioned in the question, I'm considering Indian Income Tax Act, 1961 for the purpose...
Q: Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections a...
A: Debit memorandum:- Bank issue Debit memorandum to notify depositors for deductions from Depositors a...
Q: A company has net sales of $1,531,800 and average accounts recelvable of $414,000. What is Its accou...
A: Accounts Receivable Turnover Ratio means Net Sales Divided by Average Receivable. It is used to know...
Q: end öf each following year. a) To what sum will the investment grow at the time of the 10th deposit?...
A: Interest is amount of money which the company earns on the investment made by the company which has ...
Q: was de rite-off assuming the company uses the allowance method? ag pine Multiple Choice Debit Allowa...
A: Bad debts: Bad debt is the amount owed to the business that is written off because it has become irr...
Q: Exercise 7-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estima...
A: Journal is the initial step in recording the financial transaction, date wise as per the dual entity...
Q: I need the answer as soon as possible
A: Answer: Whenever any amount has been issued to transfer between banks the entry is posted as: Bank o...
Q: Morrissey Technologies Inc.'s 2019 financial statements are shown here. Suppose that in 2020, sales ...
A: Income statement and balance sheet are prepared in financial accounting to get the true and fair wor...
Q: 3. A family obtained aP1,00 .000 mórfgáğė. If the mo for four years, how much is the total interest ...
A: Interest refers to the payment from the borrower to the lender or to the depositor of the amount abo...
Q: Cameron is single and has taxable income of $53,342. Determine his tax liability using the tax table...
A: Particulars Amount$ Taxable Income 53,342 Upto $9,950 at 10% 995 $9,951-$40,525 a...
Q: purchase discounts and purchase returns and allowances included in the calculation of cost of goods ...
A: solution Concept Purchase discount and purchase returns and allowances are contra item to purchase a...
Q: Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1.00 par val...
A: Delinquent Shares: Stock will become delinquent shares if there is a failure by the holder to p...
Q: A medium-sized manufacturing firm seeks to expand its operation in Mindanao. With a loan amounting t...
A: Amortization is the average amount that would be paid off in a loan arrangement over the period of t...
Q: ournal Entries (Note Issued, Renewed, and Paid) May 1 Purchased $5,000 worth of equipment from a sup...
A: Solution Concept Journal book is a book where the business transaction are recorded primarily These ...
Q: Broker A loans Broker B 1,000 shares of IBM for the price of $100 per share at that time. When A ret...
A: Recognised gain refers to the amount of gain from sale of an asset which is taxable, or simply it is...
Q: Mountain Sports manufactures snowboards. Its cost of making 1,890 bindings is as follóws: (Click the...
A: Total Variable cost = Total Cost - Total Fixed cost Difference = Cost of buying - Cost of Making Net...
Q: 6. Find the cash value of a condominium unit if a Php750,000 down payment and a monthly amortization...
A: Down payment (DP) = Php 750,000 Monthly payment (P) = Php 48,375 Period = 10 Years Number of monthly...
Q: Nichols Company uses the percentage of receivables method for recording bad debts expense. The accou...
A: Entries are used to document cost transactions. Every general ledger journal entry will include the ...
Q: Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note i...
A: The first step in the accounting and bookkeeping process is to make a journal entry. During this ste...
Q: During the current year, Royal Industries sold treasury stock for $32,000 cash. The treasury stock w...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash flow...
Q: oyCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated useful life of ...
A: Depreciation is the decrease in the value of asset over the useful life of asset. In double declinin...
Q: Orchid Corp. has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000....
A: Contribution margin is difference of Sales and variable costs Contribution Margin = Sales Revenue ...
Q: Pasay Manufacturing Company manufactures fire extinguishers and uses FIFO method for process and inv...
A: Cost of Goods Sold: It is the carrying value of goods which is sold during a particular period and...
Q: Problem 2 Bella Company had an overdue 8% note payable to Marimar Bank at Php8,000,000 with acrrued ...
A: Journal entry is the practice of recording financial activity for the first time in the books of acc...
Q: A loan of $2500 was repaid at the end of 39 weeks with a check for $2812.50. What annual rate of int...
A: Loan amount (P) = $2500 Repayment after 39 weeks (A) = $2812.50 Interest Paid = (A - P) = $2812.50 -...
Q: Exercise 7-3 Sales on store credit card LO C1 Z-Mart uses the perpetual inventory system and has its...
A: Journal entries are the basic method for recording financial transactions in the books of accounts. ...
Q: Landis is an employee of a startup venture and he is entitled to 2000 phantom stocks provided by the...
A: Phantom Stocks also known as Shadow Stock entitles an employee the right to receive cash payments at...
Q: Tom loves cooking and after attending culinary school, he decided to start his own eatery in downtow...
A: Journal Entry Date Particulars Amount Amount 1 Jan Cash 500,000 Loan Payable 150,0...
Q: At the end of the day, the cash register tape shows $1,360 in cash sales, but the count of cash in t...
A: Count of cash in the register is debited and the sales are credit. The difference is transferred to ...
Q: Jessie buys 100 shares of stock at $29.52 per share and then sells the stock 9 months later at $37.8...
A: Annual interest or gain is the gain which is calculated on an annual basis by extrapolating the gain...
Q: 1. When a property other than Cash is invested in a partnership, at what amount should the noncash ...
A: In the light of provisions of Partnership Act, When a property other than Cash is invested in a part...
Q: n April 2, 2011, Caesar Corporation’s BOD declared a 15% stock dividend for stockholders on record o...
A: The question is based on the concept of Financial Accounting. When a dividend is declared the amount...
Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulted you to prepar...
A: Calculation of amount collected from sales for the 4 months ending 30 April 2019 : Months Janua...
Step by step
Solved in 2 steps
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Contributed 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.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, 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 375. The bonds are classified as a held- to-maturitv 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 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued 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 (1). 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 had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)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 375. The bonds are classified as a heldtomaturity 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 issued 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 (l). 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 had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.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.
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholders
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.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.