Shown below are account balances found in the ledger of Honesty Corporation at the end of year 2018: Subscription Receivable-Preference Share P 360,000 Subscription Receivable-Ordinary Share 182,000 8% Preference Share Capital, P 50 par value, 80,000 shares authorized Issued P 1,440,000 Subscribed 720,000 2,160,000 Ordinary Share Capital, no par, P 10 stated value 320,000 shares authorized Issued P 1,360,000 Subscribed 280,000 1,640,000 Additional Paid In Capital Preference Share Premium P 216,000 Paid-In Capital In Excess of Stated Value 328,000 544,000 Required: Compute for the following: 2) 1) Number of Preference shares issued Number of Ordinary shares issued Number of subscribed preference shares 3) 6
Q: nron Company decided on August 1, 2011 to dispose of a component of its business. The component was…
A: The income from the discontinued operation can be adjusted against the loss from the discontinued…
Q: (a) Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO…
A: Note: Colour coding has been used for better understanding. Answers can be given without coding as…
Q: 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base…
A: Lets understand the basics. Trend analysis is a analysis which shows how the variable are changed…
Q: M. Suave Inc. was organized on January 1, 2018 with authorized ordinary share capital of P…
A: A corporation's stock shares are measured in shares. Shares serve as a financial asset for certain…
Q: Mitsubishi Trading Co. operates a branch in Dagupan City. At close of business on December 31, 2008,…
A: Branch accounting involves accounting related to resources and liabilities of home and branch office…
Q: When the petty cash fund is replenished: Multiple Choice Cash is debited. Petty Cash is…
A: Petty cash is the amount set aside for small day to day expenses. Every once in a while, it is…
Q: You recently began a job as an accounting intern at Big Sky Adventures. Your first task was to help…
A: Lets understand the basics. Cash budget is prepared by management to calculate cash inflow and…
Q: Explain the characteristics of contingency theory of management accounting. What are some of the…
A: According to the contingent theory of management accounting, there is no one optimal strategy for…
Q: Based on the following data for the current year, what is the inventory turnover? Sales on account…
A: Introduction: Inventory turnover is a financial ratio that indicates how frequently a company's…
Q: Question 53 of 75. In which of the following scenarios are qualified educational expenses for the…
A: Answer:- Qualified educational expenses for the education meaning:- Tuition, fees, and other…
Q: Corporation makes one product. Budgeted unit sales for July, August, September, and October are…
A: Calculations of required production Current period sale Add closing stock required Less opening…
Q: The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs…
A: Cost of goods manufactured means the cost incurred on the manufacturing of finished goods. Formula…
Q: Blue Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an…
A: Working- Preferred shares on feb 1: 10,000 shares $ 500,000 +issued further 5,000…
Q: Question Content Area Cash and accounts receivable for Adams Company are provided below: Current…
A: Introduction: Accounts receivable are the funds owed to a company for goods or services delivered…
Q: 3/At Dec 31, Michael Corp has the following bank information: Cash balance per bank $4,500…
A: Adjusted Cash Balance: Adjusted cash balance is the balance available after adjusting all the Cash…
Q: Q29 If a property is partly use by the owner for own use and the other part is held for earning…
A: IAS 40 is one of the accounting standard used for accounting of investment property. Investment…
Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: This investment On July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd.…
A: Journal entries are recorded in the books to make a complete and daily report of transactions of a…
Q: Faith Corporation was organized on January 2, 2018 and is authorized to issue 25,000 shares of 10%…
A: In the context of the given question, we are required to prepare the journal entries. The Journal…
Q: Jay Ltd wants to drop one of their service lines since it is showing a loss. The following details…
A: Lets understand the basics. Operating expense for the period is a expense incurred behind running…
Q: Due to increased demand for local deliveries in Western Sydney, Metro Deliveries Ltd leased a truck…
A: Under Lease accounting the present value of all the minimum lease payments are recorded as the lease…
Q: Cash Accounts Receivable Prepaid Rent LISPRIC Cooking Supplies - Building - Accumulated Depreciation…
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: Aquafena Inc. recognized taxable income of $140,000 for the year ended December 31, 2020. Aquafena…
A: Introduction: Journal entries should not be used to record routine transactions such as customer…
Q: Prepare the closing entries and post-closing trial balance of MIRAI GENERAL SERVICES as of December…
A: The post-closing trial balance is the trial balance prepared after closing all the temporary…
Q: Required A company provided the following summary financial statement information: Comparative…
A: Cash Payments for Income Taxes = Income Taxes + Decrease (or - increase) in Income Taxes Payable
Q: Proceeds of sale of real property classified as principal residence and capital asset are exempt…
A: The principal residence means the residence that is used by the taxpayer for his residence. A…
Q: Find out the company's cash ratio which has cash of P7500, cash equivalents of P26,250, accounts…
A: Cash ratio is an liquidity ratio, where it can be found out by adding cash available with…
Q: On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The…
A: Please refer below for explanation
Q: What is the real answer? 60,000 or 20,000?
A: Liabilities are the obligations of the business which it needs to be paid out to third parties or…
Q: Cost of merchandise sold reported on the income statement was $263000. The accounts payable balance…
A: The value of products sold by a jobber or merchant is noted because the cost of merchandise sold .…
Q: Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,…
A: Holding Company is the company which owns controlling interest in the subsidiary company. Holding…
Q: Lost Peak ski resort located in Montana caters to day skiers from nearby towns. Last year the…
A: Residual Income means the value added over an above the minimum required rate of return.
Q: Cadbury Limited has a public traded debt (debentures) with a face value of R3 million. The coupon…
A: Computation of present value of debenture after 7 years Years Particulars Cash flow PvAF/Pvf @11%…
Q: Classify each cost as being either variable or fixed with respect to the number of units produced…
A: Variable costs are costs which changes with change in activity level. Fixed costs are those costs…
Q: Raner, Harris and Chan is a consulting firm that specializes in Information systems for medical and…
A: Segment Reporting: Reporting on a company's business segments dis aggregates the company's financial…
Q: On January 1, 2008, Flax Company purchased a machine for P5,280,000 and depreciated it by the…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: 4. Paolo is a sales manager receiving a monthly salary of Php 240 000.00, a commission of 7% on his…
A: Paolo is a sales manager receiving a monthly salary of php 240,000 Commission is 7% Transportation…
Q: Assume a company sells a given product for $12 per unit. How many units must be sold to break even…
A: Total variable cost per unit = $3.5 + $0.5 = $4 Contribution per unit= Selling price per unit -…
Q: Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Katerina's Boutique is a business registered for GST and it lodges its Business Activity Statement…
A: Introduction: GST Paid: The GST (goods and services tax) is a ten percent tax on almost all goods,…
Q: What is the amount of interest owed if $7,850 is borrowed at 6.55% for 1 year? Round to two decimal…
A: Lets understand the basics. For calculating interest, we need to use below formula. Interest expense…
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Introduction:- Discount term "2/10, n/60" means If the invoice is paid within 10 days of its date, a…
Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…
A: Net income is calculated as the Sales-Cost of goods sold-Operating expense Where Gross profit is…
Q: Exercise 5-2 Recording journal entries for merchandise purchase transactions-perpetual Journalize…
A: Journal entries are the primary step to record the transaction in the books of account. The amount…
Q: the ratio of 4: 2: 4. Set out below was their balance sheet as on 31-12-2021. Balance Sheet…
A: Reconstitution of Partnership Firm: Partnership has a partnership agreement and whenever a change is…
Q: Matie's Playground Equipment has current assets of $125,400 and current liabilities of $74,950. Find…
A: Current ratio is one of the liquidity ratio being used for analysis. This shows how much current…
Q: Shore Company reports the following information regarding its production cost. Units produced 36,500…
A: Production cost is the cost incurred on the production of the goods. It includes direct material,…
Q: 1) Sales Budget with expected Cash Collections All sales are on account. The company collects 60% in…
A: April May June Quarter Budgeted Sales in units 40,000 30,000…
Q: During the month of February 2020, the following transactions occurred. Feb. 1 Collected P113,000…
A: Journal entries recording is the first step of accounting process, under which at least one account…
Q: Due to erratic sales of Its sole product-a high-capacity battery for laptop computers-PEM,…
A: Solution... Ouestion (5A). Variable cost per unit = Total variable cost ÷ units sold -…
Step by step
Solved in 2 steps
- 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.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. 190,000
- 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.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. 3,370,000Selected 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.
- 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.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?Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- 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.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.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)