Rollers company is incorporated on January 1, 2018. Company is authorized to issue 160,000 shares of $6 par value. Following transactions related to stockholder's equity is given below: Shares issued 16,000 @ $8 per share 32,000 @ $9 per share $160,000 S80,000 3,500 shares @ $11 per share Shares issued Net income Dividend paid Treasury stock purchased The balance of stockholder's equity at end of year 2018 is: a. $416,000 b. $457,500 c. $576,000 d. $489,500
Q: On January 1, 2020, Blossom Corporation had 106,000 shares of no-par common stock issued. 5,000…
A: Cash dividend = Number of shares outstanding × Dividend per share = (106000-5000+10000) ×$1 = 111000…
Q: The shareholders' equity section of Sanchez Company on January 1, 2018 showed the following:…
A: Shareholders' equity is the section reported on the statement of financial position of a firm at the…
Q: Bridgeport Inc was formed on July 1, 2017. It was authorized to issue an unlimited number of common…
A:
Q: December 31, 2017, Raja Corporations's balance sheet reported the following: Stockholders' Equity…
A: Solution Concept Cost method of accounting for treasury stock While using the Cost method of…
Q: During 2018, Longhorn Corp. had net income of $300,000 and paid dividends to its preferred…
A: The question is based on the concept of Shares and debentures.
Q: Barton Corporation began operations on January 1, 2018. The following transactions relating to…
A: “Hey, since there are multiple questions posted, we will answer first two questions. If you want any…
Q: M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares of…
A: Stockholders' equity: Stockholders' equity refers to the summation of total ordinary share capital,…
Q: Masters Corporation charter authorizes 7,800,000 shares of common stock and 760,000 sharesof…
A: Journal: Journal is the method of recording monetary business transactions in chronological order.…
Q: On January 1, 2018, Manama Company has 8% 80,000 shares of $10 par value, Cumulative preferred stock…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock…
A: This question is asking preference share dividend, Common stock dividend, and the journal entry at…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…
A: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: The retained earnings are reduced with dividend declared and increased with net income earned during…
Q: An analysis of stockholders' equity of Sheridan Company as of January 1, 2021, is as follows: Common…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: D'Ouville Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of $10 par…
A:
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: Journal entry is defined as recording of the transactions of the business into the books of accounts…
Q: On January 1, 2018, Manama Company has 8% 80,000 shares of $10 par value, Cumulative preferred stock…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Olivia Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of P10 par…
A:
Q: On January 1, 2021, Fire in the Hole Company showed the following alphabetical list of shareholders'…
A:
Q: Sherry, Inc. had 140,000 shares of $5 par value common stock issued and outstanding as of December…
A: No. of shares issued under stock dividend = Number of outstanding shares x 40% = 140,000 shares x…
Q: Weaver Corporation had the following stock issued and outstanding at January 1, 2018: 94,000…
A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: Transactions are recorded chronologically following the rules of accounting.
Q: Nowell Inc. had the following stock issued and outstanding at January 1, 2018: 150,000 shares of…
A: In case of cumulative preferred stock, any arrears dividend needs to be added to the preferred…
Q: Milton Company's charter authorizes 1,000,000 shares of common Graded Discussion stock and 400,000…
A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…
Q: On January 1 2018, ACI Ltd. had 5,80,000 shares of common stock outstanding . During 2018, it had…
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…
Q: Alexander Corporation reports the following components of stockholders' equity at December 31, 2018.…
A: Out of the profit earned by the business organizations, some of the profit is distributed to the…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…
A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…
Q: Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock…
A: Cumulative preference shares are those shares for which the shareholders get the dividend for those…
Q: Wissam Company was established on January 1, 2017. The Company issued 10,000 shares of common stock…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: Mai Corporation was organized on January 1, 2016, Duringits first year, the corporation issued…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: SOLUTION- REQUIREMENT-1 DATE PARTICULARS…
Q: mium…
A: Transactions involving stock and retained earnings have an impact on a company's shareholders'…
Q: Alexander Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: 1.Journal entries are as follows: Result:
Q: On January 1, 2021, the stockholders' equity section of Seef Inc. was as follows: Common stock ($10…
A: Treasury stock is the company's shares that are purchased by the company from the market. These…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: At the time of purchase of own stock by the company, treasury stock account is debited with the cost…
Q: Baez Corp. began operations on Jan. 1, 2023. Baez Corp. is authorized to issue 150,000 shares of…
A: A Journal is made to record all the business transactions in chronological order. It is the first…
Q: Data Controls Corporation had 250,000 shares of common stock outstanding at the end of 2017. During…
A: The number of shares in a corporation computed after accounting for variations in the share capital…
Q: Olivia Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of P10 par…
A: Stockholders' equity is the excess amount of assets over the liabilities. It includes common stock,…
Q: At the end of its last fiscal year, December 31, 2021, Sink Corporation had issued 360,000 shares of…
A: According to the question, we are required to prepare the journal entries. The journal entries: The…
Q: On January 1, 2021, Covid, Inc. had the following account balances in its shareholders' equity…
A: Working notes of statement of other equity is as follows: Resultant table:
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000shares of preferred…
A: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In…
Q: During the first year Zidux corp issued 80,000 shares of $4 par value common stock at a price of $50…
A: Paid in capital common stock has the element of preferred and common stock and can be known as…
Q: Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 180,000 shares…
A: Stockholders equity = Common stock + Paid in capital in excess of par + Retained earnings - Treasury…
Q: ony Corporation began operations on January 1, 2018. The following transactions relating to…
A: Share capital section of shareholders equity as of 31st December. 2018: Issue of shares on January 3…
Q: A company was organized on January 2, 2018. During the first year of operation, it issued 60,000…
A: Paid in Capital Common Stock will consist of preferred and common stock in total. It is also called…
Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…
A: Journal Entry - It is record of every business transaction whether it economic or non economic for a…
Q: On January 1, 2017, Browning Corporation had 75,000 shares of $1 par value common stock issued and…
A:
Q: Q. question 7
A: Statement of Stockholder’s Equity: A statement of stockholder’s equity is a financial document used…
Q: Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 180,000 shares…
A: total paid-in capital at the end of 2021 = Number of shares issued * Price per share
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- 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. 190,000Contributed 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.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.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)Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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 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.Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
