Sounds Co. had 200,000 shares outstanding during 20x1. On April 1, 20x2, Sounds acquired 30,000 shares, and on September 1, 20x2, Sounds issued a 3-for-1 share split. Profits in 20x1 and 20x2 were P410,000 and P350,000, respectively.   Requirement: What amounts should Sounds report as basic earnings per share in its 20x2 and 20x1 comparative statements of profit or loss?

Q: Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred…

A: Journal entry for recording issuance of shares is Debit Cash and Credit Common Stock and Credit…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Ordinary shares or common shares are stocks sold on a public exchange by a company. It gives the…

Q: basic earnings per share on the face of the income statement under each of the following…

A: Basic earnings per share States how much the company earns . This earning per share is important…

Q: Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On…

A: Purchase of Shares= 20000  Price paid for the shares= P1344000 Therefore, Price paid for each share=…

Q: On April 1, 2XX1, Globe Corporation, a newly formed company, had the following share capital issued…

A: A) Ordinary share capital:- The amount of Ordinary share capital for Globe Corporation             =…

Q: On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had…

A: The share means the smallest unit of the company's ownership. The shares are issued by the company…

Q: i.  If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of…

A: i)The Share splits is for every 3 Shares the Shareholders will get 5 Shares. If Sebonia Berhad has…

Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…

A: Following is the authorised capital of victory inc. :   240,000 ordinary shares ,P10 par per share…

Q: Albany Motors recently completed a 3-for-1 stock split. Prior to the split, the company had 10…

A: Stock split refers to the split of existing shares into more number of shares in the proportion as…

Q: On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The…

A: Equity method is appropriate when a company holds between 20% to 50% of the voting stock of another…

Q: Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7.500,000 in…

A:

Q: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued  12,000 shares…

A: The business combination is a transaction by which the buyer acquires the control of the seller's…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…

Q: . What amount should be recognized as share premium at year-end? 5. What is the total shareholders’…

A: It is the statement that provides the movement of the owner's balance from the beginning to the end…

Q: Mino Corporation had the following investment at FVTPL at the beginning of the current year:…

A: XYZ CORPORATION     Shares Cost Carrying Amount Beginning 10,000 P1,000,000 P1,200,000 Feb 28…

Q: On February 22, Triangle Corporation acquired 2,700 shares of the 95,000 outstanding common stock of…

A: The purchase of shares leads to share in profits of the company, whose shares are being purchased.…

Q: #22 At the beginning of the current year, Flor company had retained earnings of P4,800,000. During…

A: Retained Earnings - Retained Earnings is the amount accumulated by the company over a period of…

Q: Berry’s Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010,…

A: Under the cost method of investment, the investment is reported in the balance sheet at the…

Q: On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and…

A: As per IFRS 10 which specifies how consolidated financial statements to be prepared and presented.

Q: On January 1, 20X2, Parent Inc. issued 32,000 shares of its P10 par value common stock for all the…

A: Consolidated financial statements comprise of the group financial statements in which the…

Q: On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of…

A: Under cost method, Investment is recorded  along inclusive of any expenses incurred to acquire.…

Q: The Resty company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Total expense net of tax = ( professional fees + internal management time in managing the process) x…

Q: Porsche Company provided the following data during the first year of operations: Sold 30,000…

A:

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: During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for income through…

A: Retained earnings refers to that part of the accumulated net income of a corporation which is…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A:

Q: How much is the carrying value of the  Investment in associate-Yellow  at Dec 31, 20X2? 2,372,000…

A: The ABC company has acquired 20% interest or shares of the Yellow company as on January 2, 20X1. ABC…

Q: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost…

A: The NCI in the partial goodwill method is determined by a proportion of net assets of the subsidiary…

Q: On July 1, 20x6 TRUST Company purchased 80% of the outstanding shares of DUREX Company at a cost of…

A: Trust purchased 80% of Doodle company     At cost   $   1,600,000.00   Net assets of Doodle…

Q: Michelle Company had the following share capital issued and outstanding for the entire current year:…

A: Basic EPS represents the per share amount earned by the common shareholders of an entity out of its…

Q: At the beginning of current year, Lauretta Company reported the following shareholders' equity:…

A: Particulars Amount Retained earnings at the beginning 2,000,000 Less: Property dividend at Fair…

Q: The following are the balances of Chair Company and Table Company as of January 1, 2002. Chair…

A: Business combination refers to the process of combining two or more business in a single entity. It…

Q: 1. Prepare the necessary journal entries to record the above transactions

A: 1. Date Account Debit Credit Feb 28 No journal entry as value of investment remains the same.…

Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…

A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…

Q: How much should be recognized as the carrying value of investment in Yellow- FVPL account at Jan 2,…

A: Carrying value of Investment in Yellow- FVTPL account at Jan 2, 20X3: 1,860,000

Q: Harvey Corporation shows the following in the shareholders' equity section of its statement of…

A: Given, Stated value = $0.25  Total balance in common stock account = $50,000 Shares repurchased =…

Q: On June 30, 20x1, Cockroach Co. acquired 75,000 of Nymph Co.'s 100,000 outstanding equity shares…

A: Consolidation In the consolidation Parent company acquired more than 50% shares of the subsidiary…

Q: On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The…

A: Correct answer C. 33,000

Q: On Jan 2, 20X1, ABC acquired 20% of the 400,000 ordinary shares of Yellow Co at P30 per share. The…

A: Investment: Investment is the act of acquiring shares of another company by one company. The company…

Q: On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash…

A: Non controlling interest is the value of shares owned by minority shareholders. Total Shares =…

Q: On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On February 22, Stewart Corporation acquired 7,500 shares of the 265,000 outstanding shares of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: National Co. recently completed a 3-for-1 stock split.  Prior to the split, the company had 10…

A: A 3 for 1 stock split means that every share is converted into 3 shares. This increases the number…

Q: Daisy Corp. recently completed a 2-for-1 stock split.  Before the split, the company had 10,000,000…

A: Stock split: Stock split means dividing current shares into multiple shares. The corporations may…

Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…

A: Total fair value of Ordinary shares issued = No. of shares  x Fair value per share = 35000*100 =…

Q: Goosen Company has outstanding 40,000 shares of €5 par ordinary shares which had been issued at €30…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Emma Consulting had previously purchased 3,466 shares of treasury stock for $7 per share. Emma then…

A: Given,  3,600 shares purchased for $7 per share Sold 1,225 shares of treasury stock for $13 per…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Shares can be exchanged for cash or issued in exchange for anything other than cash. The term "issue…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.