Q: Peyton Company's payroll for the year is $739,020. Of this amount, $464,090 is for wages paid in exc...
A: Formula: Total Unemployment taxes = Net FUTA tax + NEt SUTA tax
Q: ABC Co. purchased merchandise with a list price of P90,000, subject to trade discounts of 20% and 10...
A: Solution: List price of merchandise = P90,000
Q: 1. Prepare the book of prime entry 2. Prepare the ledger accounts 3. Prepare the trial balance as of...
A:
Q: Which of the following cases would affect the noncurrent liabilities portion of the balance sheet? C...
A: When Taxable income is greater than the accounting income then deferred tax liability should be crea...
Q: A twenty-year operating lease provides for a 10% increase in annual rental every five years. In the ...
A: Introduction:- A twenty-year operating lease provides for a 10% increase in annual rental every five...
Q: Question 2 Gia's Foods produces frozen meals, which it sells for $8 each. The company computes a new...
A: i) Absorption Costing Variable Costing Variable manufacturing cost per meal $ 4...
Q: following is a permanent difference
A: Permanent differences are the differences between taxable and accounting income that do not reverse ...
Q: 11 21 To produce 1,000 units of the product, the standard prime costs are as follows : Direct labor ...
A: The variances are computed by comparing the actual performance with standard performance. In case of...
Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10% i...
A: Present value of perpetuity = Annual amount / interest rate
Q: Which of the following is an example of a temporary difference which would result in a deferred tax ...
A: Solution: Rent revenue collected in advance included in taxable income before it is included in acco...
Q: 1, 2 and
A: Statement of Comprehensive income For the year ended December 31, 2016 Particular Detail Am...
Q: Why does a company's budget need to be closely linked to the needs of good strategy execution? Why m...
A: Because insufficient cash and other forms of resources hamper development and inhibit organisational...
Q: Amount II II IV V Beginning Capital P200 000.00 P150 000.00 P325 000.00 | P400 000.00 5.P Additional...
A: Formula; Beginning capital + Net income + Additional investment - Drawings = Closing capital
Q: For each company, calculate the missing amount. Cost of Goods Sold Operating Expenses Company Sales ...
A: Gross profit = Sales cost of goods sold Net income = gross profit - Operating expenses
Q: Jeanneth company bought a new machine and agreed to pay in equal annual installment of P300,000 at t...
A: Present value of total payment = annual installment x ordinary annuity of 1 at 12% for five periods...
Q: Which of the following would be classified as the main direct material for a furniture manufacturer?...
A: Direct material cost includes the cost of materials that is used directly in the production.
Q: Bryant Company uses the reciprocal services method to allocate support department costs and has prov...
A: Total cost is the cost which has been incurred to manufacture the products or to render the services...
Q: In a single period inventory model, we need to decide between stocking 5 units versus 6 units. The p...
A: Expected value of benefit will be calculated as difference between the expected profits and expected...
Q: In which of the following purchase methods buying goods for taking advantage of favourable market si...
A: Speculative purchasing is a method in which goods are purchased by taking advantage of favourable ma...
Q: written statements with details of prices and terms of the offer for products
A: Option a is wrong because Purchase Returns Note is used to record the goods returned by the entity a...
Q: PFRS 16 allows off-balance-sheet reporting of leases under which of the following? both of the two c...
A: Expenses from low-value asset leases not included on the balance sheet as of the end of the reportin...
Q: Oregon Co.‘s employees are eligible for retirement with benefits at the end of the year in which bot...
A: GIVEN Oregon Co.‘s employees are eligible for retirement with benefits at the end of the year in w...
Q: On June 30, 2019, King Company had outstanding 9%, P5,000,000 face value bonds maturing on June 30, ...
A: Face Value of bonds on June 30, 2019 P50,00,000 Add: Unamortized bond premium P30,000 Carrying ...
Q: Village Shipping Inc. Income Statement Horizontal Analysis For the years ending December 31, 2014 an...
A: In ratio analysis we calculate the ratios of each year and a comparison is made between the result a...
Q: . What is the cost of a shirt sold at P150 if the markup rate is 35% of the selling price? 3. What i...
A: solution given in first question Selling price 150 Markup on selling price 35% of sellin...
Q: Direct material is a ________. a. Selling and distribution cost b. Manufacturing cost c. Administrat...
A: Direct material is directly used for the production of goods
Q: The following transactions and adjusting entries were completed by a paper-packaging company called ...
A: Adjustment entries are journal entries made at the end of an accounting cycle to update certain re...
Q: What is the amount of the total annual lease payment? a. $443,851 b. $451,851 c. $488,236 d. $591,80...
A: Answer are as follows
Q: Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost informat...
A: Solution: Entry to record fixed manufacturing overhead costs and related variances is as under:
Q: PROBLEMI: Engr. Cl= to 97,000
A: Cost of Asset: As per IAS 16 Property plant and equipment cost included the following Purchase price...
Q: One component of communication equipment produced by Briggs Audio Systems is currently being purchas...
A: Relevant cost of manufacturing = materials + labor + variable manufacturing overhead = 95+55+60 = P2...
Q: The Kaumajet Factory produces two products-table lamps and desk lamps. It has two separate departmen...
A: Finishing Department's rate = $550,000 / 500,000 DLHs = $1.10 Production Department's rate = $400,00...
Q: What is the journal entry of On July 16 Performed $600 of services for customers who paid in advanc...
A: There are three golden rules in accounting for recording the transaction : Debit what comes in , C...
Q: A large profitable corporation has purchased a luxury van for use by its executives. The cost of the...
A: Using sum of years digits method calculation of Book value::: Cost of the plane ::5 million.. Residu...
Q: Total Labor Variance Tico Inc. produces plastic bottles. Each bottle has a standard labor requireme...
A: Total Labor Variance = Actual Labor Cost - Standard Labor Cost
Q: how much is the gain on extinguishment of debt?
A: Face value of bonds= P10,000,000 Carrying value of bonds= P9,600,000 Unpaid interest on the bonds=...
Q: Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company purchas...
A: Cost of goods sold is calculated by adding the opening balance and purchases and subtracting the clo...
Q: LIhe tollowing intormation applies to the questions displayed below. On October 29, Lobo Co. began o...
A: Answer are as follows
Q: Direction: discussed the process of auditing the following transactions/accounts: b. Midstream and...
A: Auditing Process Auditing process in the natural extraction which can be measured the initial recogn...
Q: Lease payments under an operating lease shall be recognized as an expense in the income statement on...
A: As per IAS 17 Lease payments under an operating lease shall be recognized as an expense in the incom...
Q: Use the following Annuity Table for question Future Value of Ordinary Annuity of 1 Period ...
A: The question is based on the concept of Financial Accounting.
Q: Which of the following cases would result to a Deferred Tax Asset? I – Tax Revenues Accounting Reve...
A: Solution: Following cases would result in deferred tax asset as it will create future deductible dif...
Q: During the year ended December 31, 2020, Kelly's Camera Equlpment had sales revenue of $170,000, of ...
A: Bad debts expense = Credit sales x 2% 85000*2% = $1,700
Q: Case 1: Determining and valuing stocks, cost of products offered is easy in a retailing business, ho...
A: a and b .Cost Classification refers to a complete and transparent idea of separation of expenses in ...
Q: Please describe a significant disadvantage of utilizing income from operations as a performance indi...
A: Introduction: Investment centers are the units or organizations where a company's money is invested ...
Q: On Aug. 15, Sheffield Company discounted at Sunshine Bank a $9,000 (maturity value), 122-day note da...
A: Formula: Interest amount = Principal amount x Interest rate x Time period
Q: Matt, the owner of B1 and B2 Fruit Stand knows that 10% of the bananas they bought from a wholesaler...
A: Total cost of bananas purchased = 200 kilos of bananas x P15 per kilo ...
Q: An organisation manufactures a single product. The total variable cost of making 4,000 units is OMR ...
A: Variable cost per unit of the product = Total variable costs incurred / Total no. of units produced
Q: 6. On December 31, 2012, Sunshine company showed the following data with respect to its matured obl...
A: In this question it is given that the fair value of liability is p13,500,000 here the carrying amoun...
Q: On December 31, 2020, Stormy & Co. started a defined benefit plan for its president. The plan provid...
A: In the given question, Stormy & Co. started a defined benefit plan for its president. The plan p...
BASIC EARNINGS PER SHARE
Step by step
Solved in 3 steps with 3 images
- 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.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.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 37 5. The bonds are classified as a held-to-maturity 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 issue d 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 (I). 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 h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [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 in come statement for the year ended December 31, 201 6, 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, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
- 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.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)
