Selling Expenses Administrative Expenses $ 95,000 150,000 Common Stock, $11 Par Value, 13,500 shares authorized and issued Preferred Stock, $2 No-Par Value, 2,000 shares issued Income Tax Expense: Continuing $ 148,500 Income from Discontinued Operations 2,400 60,000 Cost of Goods Sold Treasury Stock-Common (1,500 shares) Net Sales Revenue 470,000 19,500 50,000 Operations Income Tax Expense: Income from Discontinued Operations 801,400 960

Selling Expenses Administrative Expenses $ 95,000 150,000 Common Stock, $11 Par Value, 13,500 shares authorized and issued Preferred Stock, $2 No-Par Value, 2,000 shares issued Income Tax Expense: Continuing $ 148,500 Income from Discontinued Operations 2,400 60,000 Cost of Goods Sold Treasury Stock-Common (1,500 shares) Net Sales Revenue 470,000 19,500 50,000 Operations Income Tax Expense: Income from Discontinued Operations 801,400 960

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 23E

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Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gain
STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year: (a) Issued 8,000 shares of no-par common stock with a stated value of 5 per share for 40,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 5 per share for 33,000 cash. (c) Issued 5,000 shares of no-par, 6% preferred stock with a stated value of 15 per share for 75,000 cash. (d) Issued 10,000 shares of 5 par common stock for land with a fair market value of 50,000. (e) Issued 20,000 shares of 5 par common stock with a 7 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 50 par, 8% preferred stock for land with a fair market value of 405,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.
1. Winston Corporation purchases all of Harley Company’s stock on June 1 for P1,200,000. At that date, Harley had the following book and market values: Book Value Market Value Cash and Receivables P80,000 P80,000 Inventory 230,000 270,000 Plant Assets (net) 900,000 1,230,000 Cost of Goods Sold 750,000 Operating Expenses 170,000 Dividends 20,000 Liabilities 600,000 600,000 Common Stock 25,000 Retained Earnings 525,000 Sales 1,000,000 What amount of retained earnings is eliminated in the acquisition date worksheet elimination? Please explain step by step with conclusion. Thank You
1. Winston Corporation purchases all of Harley Company’s stock on June 1 for P1,200,000. At that date, Harley had the following book and market values: Book Value Market Value Cash and Receivables P80,000 P80,000 Inventory 230,000 270,000 Plant Assets (net) 900,000 1,230,000 Cost of Goods Sold 750,000 Operating Expenses 170,000 Dividends 20,000 Liabilities 600,000 600,000 Common Stock 25,000 Retained Earnings 525,000 Sales 1,000,000 What amount of retained earnings is eliminated in the acquisition date worksheet elimination? 2. Banana Company purchases 80 percent of Mango. At the date…
Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51. Logan’s July 1 balan ce sheet after the quasi-reorganization should show total assets ofa. P 4,000,000b. P 2,500,000c. P 4,375,000d. P 3,875,0002. The balance in additional paid in capital after the quasi-reorganization on July 1 is:a. P 750,000b. P 2,000,000c. P 500,000d. P-0-3. Logan’s deficit after the quasi -reorganization on July 1,2011 should be:a. P 750,000b. P 250,000c.…
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Reporting EPS: Discontinued Operations Taft Corporation had after-tax income from continuing operations of $11.4 million for 2020. Taft also reported a $2.09 million after-tax loss on the disposal of its textile subsidiary. Taft uses a calendar-year reporting period. Taft's capital structure consists of the following. Preferred stock: 170,000 shares of $100 par, 8% cumulative nonconvertible preferred stock issued in 2020. No dividends were declared in the current year. Common stock: Outstanding January 1, 2020, 4,271,865 shares, $1 par. Dividends of $1.00 per share were declared and paid in 2020. On July 1, 2020, a three-for-one stock split was declared and the shares were issued.
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