PT Navagio Tbk is a pharmaceutical company. As a limited liability company, company ownership is divided into shares. The company only has ordinary shares. The equity information as 31 December 2019 is as in the picture Instruction: Prepare a stockholders equity section on December 31, 2020!

PT Navagio Tbk is a pharmaceutical company. As a limited liability company, company ownership is divided into shares. The company only has ordinary shares. The equity information as 31 December 2019 is as in the picture Instruction: Prepare a stockholders equity section on December 31, 2020!

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 4MC

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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?
The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
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.
Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.
Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
PT Navagio Tbk is a pharmaceutical company. As a limited liability company, company ownership is divided into shares. The company only has ordinary shares. The equity information as 31 December 2019 is as in the picture Instruction: Calculate earnings per share of common stock for the year 2020 if net income for the year was Rp 120,000,000!
PT Navagio Tbk is a pharmaceutical company. As a limited liability company, company ownership is divided into shares. The company only has ordinary shares. The equity information as 31 December 2019 is as in the picture Instruction: 1. Journalize all the transaction during 2020! 2. Prepare a stockholders equity section on December 31, 2020! 3. Calculate earnings per share of common stock for the year 2020 if net income for the year was Rp 120,000,000!
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Prepare the company’s journal entries and statement of owner’s equity based on the following information: Issued 5,000 shares of common stock. Stock has par value of 0.01 per share and was issued at $30 per share. Issued 5,000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 120,000 shares of common stock for land with an appraised value of $300,000 and a building with an appraised value of $500,000. Earned Net income $600,000. Paid dividends to preferred shareholders as well as $2 per share to common stockholders. A. Prepare the journal entries with narrations to record the following: The…
Integrity Company is a publicly held company whose shares are traded in the over-the-counter market. The shareholders’ equity accounts at December 31, 2021 had the following balances (see image below).Transactions during 2022 and other information relating to shareholders’ equity accounts were as follows: February 1: Issued 30,000 ordinary shares to AAA Company in exchange for a piece of land. On this date, the ordinary share had a market price of P20 per share. The land had a carrying value on AAA's books of P420,000 and an assessed value for property taxes of P400,000. March 1: Purchased 5,000 of its own ordinary shares to be held as treasury for P24 per share. May 10: Declared property dividend (equity investments at fair value through profit or loss) to ordinary shareholders. The investments had a carrying amount of P600,000 as of December 31, 2021 and fair values were P720,000 on May 10, 2021 (declaration date) and P736,000 on June 1, 2022 (distribution date). October 1: Reissued…
Can you also answer this? The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00) C. Issued 30% shares of preferred stock at par value (Par value - $125). d. Exchanged 40% shares of class A common stock…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 45,500 shares of common stock. Stock has par value of 0.30 per share and was issued at $30 per share. Issued 8, 000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 160,000 shares of common stock for land with an appraised value of $400,000.00 and a building with an appraised value of $650,000.00. Earned Net income $650,000.00. Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare the…
Opus Corp has decided to issue equity in order to raise capital to expand operations. The company has received approval from the board of directors to issue 100,000 shares of the company’s common stock on May 1, 2020. On the date of issue, the common stock has a par value of $0.25 and a market value of $5. What amount will Opus Corp record as Common Stock on May 1, 2020?