Sall Corporat
Q: Contrast term stackholder and stakeholder
A: It is assumed that there is a typo in the question and the question is asking to contrast the term…
Q: How is ARR calculated?
A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…
Q: Define corporation
A: Corporation is a legal entity separate from its shareholders. Just like an individual, a corporation…
Q: ne Income Statem
A: The correct statement is False
Q: nmunicatio ortant with
A: As per rule, allowed to answer one question at a time and post the remaining in the next submission.
Q: Explain Oligopoly, and its features.
A: Given, Explain Oligopoly, and its features.
Q: Define Net realizable value.
A: Net realizable value is the expected cash to be received against a given asset. Thus, Net…
Q: The acco
A: Accounting equation has been considered as the origination of double entry accounting system. This…
Q: ofit
A: Note : As per the bartelby guidelines only first question will be answered. Kindly post the…
Q: Define the term spread.
A: In financial aspect, spread can have several meaning. In common it defines the gap or difference…
Q: Define revaluation
A: Revaluation holds many meanings in different fields. In financial terms, it is the adjustment and…
Q: Explain compound interest.
A: Compound interest.
Q: wo alternati
A: Working Particulars Handy Cam R- tistry Cost 250000 200000 Less scrap at the end of 6 years…
Q: Define tangible.
A: Tangible means anything that can be touched and seen.
Q: What are the equivalent units?
A: Equivalent units: Completed units 150 Ending Inventory 20 Total…
Q: What is LIBOR?
A: London Interbank bank offering rate (LIBOR): it's a financial interest rate between two bank or…
Q: this e gilhiPment
A: Step 1 Depreciation is the written down in the value of the assets.
Q: Define Volcker rule
A: Volcker Rule is a regulation that implies restrictions on the banks to involve in the stock market…
Q: tement
A: A Contribution/Unit = $ 480 B Contribution Margin Ratio = 60 % C Contribution Margin Income…
Q: Define Contingencies.
A: Uncertain events refer to uncertainty regarding the occurrence of an event or the data values…
Q: ue of the expansic
A: In this we have to calculate present value of cash inflows and outflows.
Q: What ‘LIBOR’ stands for?
A: LIBOR : LIBOR, which stands for London Interbank Offered Rate, is a globally accepted key…
Q: nnual
A: In this we have to calculate future value in two steps for different rate of interest.
Q: explain
A: It is identified that many of the criteria given in the Table I can be met simultaneously. For…
Q: RebecoCa entity, purch o 'aɔr
A: The bonds were purchased at premium of P 251,880 [3,251,880-3,000,000]. The…
Q: Describe about the NOL.
A: NOL means Net Operating Loss. This is a situation when company's deductions are more than it's…
Q: stimat- r this
A: Under % the age completion method the revenue is recognized on the basis of the cost…
Q: Define the term Net method.
A: As per the net method, the company records the amount of purchase by deducting any potential…
Q: Example: Cost of acquisition n
A: Cost of acquistion is the cost of acquiring assets of the company . As…
Q: What is consignment
A: Consignment is a form of arrangement between two parties in which one party sends goods to another…
Q: Define claim
A: Corporation - An organization that has been registered as a corporation under a corporation act has…
Q: Define S corporation
A: The S corporation is a tax election that legal business entities can choose to elect for taxes…
Q: Define vested
A: Vested in simpler terms means to confer or bestow power, the authority on someone. In commerce and…
Q: Explain consignment arrangement with example.
A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…
Q: AX, resider
A: A resident foreign corporation in Phillipines is taxed at a similar rate…
Q: for osganizat
A: Business portfolio : In simple words, A business portfolio can be understood as the collection of…
Q: Define Households.
A: A household refers to a social entity of people living in a house or a home. However, this…
Q: Define the term Discrete Compounding?
A: Answer: Banks usually use two types of compounding processes. They are Continuous compounding, and…
Q: Describe EVA.
A: EVA (Economic Value Added):
Q: Position (S
A: 1. Any excess of the purchase consideration over the net assets acquired of an entity, is first…
Q: Define Gains
A: Investment refers to flow of funds made to create capital in order to earn profits from that…
Q: Define discriminant function
A: DISCRIMINANT FUNCTION- If we have a set of K classes then we may define a set of K discriminant…
Q: Define consol
A: consol is a debt instrument.
Q: ermediate calcul-
A: Formula to calculate the basic EPS is: Basic EPS = Earnings after tax/No of outstanding shares…
Q: Define duality.
A: Duality is related to happening of an economic transaction. This concept arises when any transaction…
Q: Define Securitization.
A:
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- 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.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. 3,370,000Lyon 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.
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Monona 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.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.
- 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?Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.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.
- Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.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.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.