retained earnings?
Q: Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its December…
A: The total equity balance on December 31,2020=Total Assets -total liabilities…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: The journal entries to record the issue of bonus shares and EPS for 2020 and 2021 are presented…
Q: 1: Cyrell Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2019, the…
A: Introduction Retained earnings are the earnings that is left after dividend distribution to…
Q: At the beginning of 2019, Cookie Corporation had retained earnings of P 3,000,000. Throughout the…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A: Stockholder's equity is the amount belongs to the stockholder's of the business. It is the sum of…
Q: Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share…
A: RE refers to Retained Earnings which is the amount of NI (Net Income) that is left or retained by…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Basic Earning Per share is Profit available for equity shareholders divided by Weighted no. of…
Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…
A: Retained earnings are the plowed back profits which are used to make disbursements, to pay…
Q: Montrose Construction Ltd. had 64,000 common shares and 22,000 preferred shares outstanding on…
A: Earnings per share is one of the important calculation being made in business. It shows how much…
Q: On December 31, 2020, Alexander Company had $1,200,000 of short-term debt in the form of notes…
A: Definition: Liability: Liability is an agreement made by a company to pay a certain amount for the…
Q: During 2021, its first year of operations, McCollum Tool Works entered into the following…
A: Weighted average no. of outstanding common shares = 35,000,000 + 4,000,000*9/12…
Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: Rayan Corporation was organized on January 1, 2020, with an authorization of 1,200,000 ordinary…
A: The total number of share premium as of December 31, 2020 = Cost of Treasury shares - Cost of…
Q: Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000…
A: Stock dividend is a category of dividend in which the dividend is made in stock or shares itself…
Q: Red Hat Company began operations in January 2018 and reported the following results of operations…
A: Book value per common stock = (Total stockholder's equity-(liquidation value of preferred stock+…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: Calculation of bonus shares issued: Existing no of shares = 36 million Bonus shares proportionate =…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the…
A: Under the cost method, the purchase of treasury stock is recorded by debiting treasury stock account…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Share premium is the amount received on issue of ordinary shares in excess of its par value.…
Q: Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value…
A: Ordinary shares: These are the shares issued by a company to an outsider. These shares entitle a…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Good life company shows the following of December 2018 : Ordinary shares of 900000 shares @ P10 per…
Q: Phoenix Suns Company reported the following shareholders’ equity on January 1, 2019.…
A: Total amount paid for shares acquired = No. of shares acquired x Amount paid per share = 50,000…
Q: On January 1, 2021, marine company had 125,000 issued shares and 25,000 treasury shares. During the…
A: No. of shares issued means shares issued by the company including the shares purchased by the…
Q: On March 1, 2018, Plain, Inc. sold 40,000 shares of its P 30 par value Ordinary Share Capital on a…
A: Journal is the primary book of entry in accounting. It is the first book where a business…
Q: At December 31, 2020, BFAR Corp. had 20,000 treasury shares that had been re-acquired in 2020 at P14…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: On December 31, 2019, JnT Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Treasury Stock: These are the shares that are purchased back by the company from the open market.…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Number of shares on June 30=Initial issue-Reacquisition+Resell=900,000-75,000+45,000=870,000 shares
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A:
Q: Pluto Company began operations on January 1, of 500,000 preference shares of P5 par value of which…
A: Contributed Capital is the amount a company receives on the account of issue of common and preferred…
Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…
A: Retained earnings is part of net profit of the year that is retained by the organization for future…
Q: Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of…
A: The shareholders' equity is calculated as sum of the issued and outstanding share capital, retained…
Q: basic earnings per share for preference shareholders
A: In respect of cumulative preference shares, dividend is accumulated until paid. Hence, the…
Q: Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the…
A: Retained earnings refer to the accumulated portion of the profits of business that is not…
Q: ananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Solution Given Number of authorized shares 400000 Jan 5 issued 225000 shares July 28…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: 1. Determination of Journal entries to record issue of bonus shares Date Account title and…
Q: On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000…
A: Stockholder's equity on 31 Dec 2020 Ordinary Share Capital Authorized 950,000 shares of…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share indicates the net income of the firm after preferred dividend which is available…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Carlmont Corporation is authorized to issue 5,000,000 shares of $2 par value common stock. As of…
A: The treasury stock shares decreases the number of outstanding chares. The dividend is declared for…
Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: n January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. uring the year,…
A: The shares issued includes the treasury stock shares but shares outstanding are decreased with the…
Q: On January 1, 2020, Marimar Company reported the following shareholder's equity: Share capital,…
A: The Shareholder's equity shows the amount of contribution by the owners to the capital of the…
Q: Monitor Company has 120,000 ordinary shares issued and outstanding at January 1, 2020. On January 2…
A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…
A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…
AAA Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the
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- 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. 3,370,000Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- 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. 190,000Anoka 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%.
- Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.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.
- 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.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.