QUESTION TWO - Prepare, in vertical format, the Profit and Loss Appropriation Account of Stanigar Ltd. * 2. The balances below remained in the books of Stanigar Ltd after the preparation of the Trading and Profit and Loss Account for year ended June 30, 2004. Net Profit Debtors Creditors Interim dividend paid to ordinary shareholders Fixed assets at cost Accumulated depreciation Unappropriated profits brought forward Ordinary shares ($2 each) 5 percent preference shares ($3 each) Stocks (June 30, 2004) Bank overdraft Prepaid expenses Interest on loan outstanding Cash balance S 319 400 86 000 38 000 1. 20 000 548 000 27 400 55 000 100 000 40 000 66 000 15 000 3 500 56 000 2.300 45 000 30 000 Directors fee outstanding 14 percent loan The directors of Stanigar Ltd recommended the following: 1. That TWO reserves be set up, namely, a general reserve of $15 000, and a reserve of $7 000 for asset replacement. 2. Ordinary shareholders be paid a final dividend of 20 cents per share. 3. Preference shareholders dividend be paid. Prepare, in vertical format, the Profit and Loss Appropriation Account of Stanigar Ltd.

QUESTION TWO - Prepare, in vertical format, the Profit and Loss Appropriation Account of Stanigar Ltd. * 2. The balances below remained in the books of Stanigar Ltd after the preparation of the Trading and Profit and Loss Account for year ended June 30, 2004. Net Profit Debtors Creditors Interim dividend paid to ordinary shareholders Fixed assets at cost Accumulated depreciation Unappropriated profits brought forward Ordinary shares ($2 each) 5 percent preference shares ($3 each) Stocks (June 30, 2004) Bank overdraft Prepaid expenses Interest on loan outstanding Cash balance S 319 400 86 000 38 000 1. 20 000 548 000 27 400 55 000 100 000 40 000 66 000 15 000 3 500 56 000 2.300 45 000 30 000 Directors fee outstanding 14 percent loan The directors of Stanigar Ltd recommended the following: 1. That TWO reserves be set up, namely, a general reserve of $15 000, and a reserve of $7 000 for asset replacement. 2. Ordinary shareholders be paid a final dividend of 20 cents per share. 3. Preference shareholders dividend be paid. Prepare, in vertical format, the Profit and Loss Appropriation Account of Stanigar Ltd.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 65BPSB: Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following...

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Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Lenos net income or net loss for the year in each of the following independent situations: Leno declared no dividends, and its common stock remained unchanged. Leno declared no dividends and issued additional common stock for $15,000 cash. Leno declared dividends totaling $10,000 and its common slack remained unchanged. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.
Problem 1-65A Relationships Among Financial Statements Carson Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Carsons net income or net loss for the year in each of the following independent situations: Carson declared no dividends. and its common stock remained unchanged. Carson declared no dividends and issued additional common stock for $40,000 cash. Carson declared dividends totaling $5000 and its common stack remained unchanged. Carson declared dividends totaling $20,000 and issued additional common stock for $35,000.
Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.
5. An entity provided the following data for the year ended December 1, 2019: Retained earnings unappreciated, January 1 P2 000 000 Overdepreciation of 2018 due to prior period, net of tax 400 000 Net Income 3 000 000 Retained earnings appreciated for treasury shares (original balance is P500 000 but reduced by P200 000 by reason of reissuance of the treasury shares) Retained earnings appropriated for contingencies (beginning balance P700 000 but increased by current appreciation of P100 000) Cash dividends paid to shareholders Change in accounting policy from FIFO to a average-credit, net of tax • What is the balance of unappreciated retained earnings on December 31, 2019?
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Based on the below information prepare a statement of shareholders’ equity in a proper format for Rams Ltd. for the year ended December 31, 2020. Rams Ltd. reported the following balances at January 1, 2020: Common shares................................................................................ $370,000 Preferred shares................................................................................ 74,000 Contributed surplus ........................................................ 65,000 Retained earnings............................................................................. 70,000 Accumulated other comprehensive income..................................... 71,000 Rams’ corporate tax rate .................................................................. 31.5% During the year, Rams performed the following: 1. The cumulative effect of the change from straight-line to accelerated depreciation resulted in a reduction to retained earnings of $35,000, before tax. 2. Issued common…
4. An entity provided the following information on December 31, 2015:Total reported income since incorporation 1,700,000Total cash dividends paid ( 800,000)Unrealized holding loss on trading investment ( 120,000)Total share dividends distributed ( 200,000)Prior period adjustment recorded January 1, 2015 - credit 75,000What amount should be reported as retained earnings on December 31, 2015?
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1. The following information was taken from the accounts of JT Corp at year end:Total income since incorporation P900,000Total cash dividends paid P260,000Proceeds from sale of donated shares P 90,000Total value of share dividends distributed P60,000Excess of proceeds over cost of treasury stocks sold P140,000What should be the current balance of retained earnings? a. P780,000b. P520,000c. P720,000d. P580,0002. see imagechoices: a. 176,000b. 263,000c. 204,000d. 321,000