Sunland Corporation was organized on January 1, 2021. During its first year, the corporation issued 1,900 shares of $50 par value preferred stock and 108,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,200; 2022, $14,200; and 2023, $27,000. (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and noncumulative. Allocation to preferred stock $ Allocation to common stock $ 2021 $ $ 2022 $ $ 2023
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…
A: LIFO states that the inventory purchased first would be sold last by the company. Whereas, FIFO…
Q: Convertible bonds that are dilutive generally affect the calculation of______. Select one: a. basic…
A: Convertible bonds refers to the fixed income debt security which yields the interest payments but…
Q: Calculate the amount and the percent of total. Do not round intermediate calculations. Round the…
A: The cost of quality refers to the cost which is incurred in improving the quality of the product or…
Q: On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years,…
A: Bonds :— It is one of the source of capital that pays periodic interest and face value at the end of…
Q: Skysong Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at…
A: Introduction: The cost of goods sold is the cost of producing the commodities sold by a firm. In…
Q: Company A 7/8/13/2 Company B 10/6/16/6 a. Calculate the single equivalent discount rate for each…
A: As per the given information: Discounts given by Company A - 7,8,13,2 Discounts given by Company B -…
Q: The Cycle Division of Sheffield Company has the following unit data related to its most recent…
A: INTRODUCTION: The contribution margin of a company is the difference between its sales revenue and…
Q: ns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the…
A: A dividend refers to the sum value of money dispersed by a company to its shareholders out of the…
Q: Journalize the 2022 transactions and post to the account Stock Investments. (Use the T-account form)…
A: Cullumber Associates hold common stock of 3 companies which are held as investments. IFRS 9 pertains…
Q: ung Class Assignment Chapter 8-Receivables 2019 Dec. 3 Received from Chicago Clothing & Bags Co., on…
A: Notes Receivable - Notes Receivable is a Promissory notes issued by the payer to the receiver. It is…
Q: Greenway Irrigation Systems uses job order costing and applies manufacturing overhead to individual…
A:
Q: In step 3, how did you get the advertising expenses? Where did you get them from the problem?
A: Advertisement expense is the amount which is incurred by the company on promotion or marketing a…
Q: Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800,…
A: Introduction:- When the partners take cash from the business, it is recorded in the Withdrawals…
Q: Gifts
A: Tax is a compulsory payment made to the government of the country. It is made as a percentage of…
Q: Prepare a depreciation schedule to be used for tax purposes for a $110,000 railroad spur using the…
A: Depreciation shows the reduction in the value of asset over a useful life of the asset. It is…
Q: Intercontinental, Incorporated, uses a perpetual in inventory: August 1, purchased 10 units for $910…
A: Companies may just produce goods without selling them during a particular season of the year. Hence,…
Q: During the FBT year ending 31 March 2022, Julia Zhu, an utor retail of
A: Taxes - Taxes are compulsory payments made by a government organization, whether local, regional, or…
Q: The adjusted trial balance for Hampton Advertising Services is presented below. (Click on the icon…
A: Income Statement - The income statement includes income earned and Expenses incurred during the…
Q: A gift shop had overhead expenses totalling $2,757 during the month of July. The business recorded…
A: Overhear Rate :— It is calculated by dividing total overhead cost by total estimated cost allocation…
Q: Costs per Equivalent Unit The following information concerns production in the Baking Department for…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the…
A: The cash payment schedule is the statement with all the cash payments from the business stating all…
Q: Explain how accountancy is helpful in the efficient allocation of scarce resources in an economy.
A: Accountancy is the practice of recording, measurement and processing of transactions of a business…
Q: Earnings: $460,000 Stock: 2,000 shares purchased at $5 per sha Sales purchases an additional 2,000…
A: Answer :Common stock issued = 20,900 Treasury stock already purchased = 2000 Additional treasury…
Q: On January 1, Aivah Company purchased 2,000 common shares (25%) of Maywood Corporation as a…
A:
Q: Jones and Smith start a partnership on January 1 of the current year. Smith contributes $51,000…
A: As per the accounting rules, Assets and expenses are debited when increases and credited when…
Q: ship reported the following results from operations: sales of goods sold ating expenses t-tern…
A: Partnership refers to the legal agreement between two or more persons who decide to run the business…
Q: During March 2022, Vaughn Tool & Die Company worked on four jobs. A review of direct labor costs…
A: INTRODUCTION: Direct labor refers to the salary and wages provided to workers who are directly…
Q: Use the information provided to determine the answers to the following questions: A. What is the…
A: A. The total amount owned to Joe torre tea by its customer at the end of the year $3,900.00…
Q: Tiffani Lind earned $1,200 during her biweekly pay period. She is married filing jointly. Her annual…
A: Some employees are paid on a weekly basis. To calculate their annual income the weekly pay is…
Q: XIV. Allocating the Transaction Price Ging Systems sold software to a customer for P80,000. As part…
A:
Q: The Donna Company adopted a defined benefit pension plan on January 1, 2016, and prior service cr…
A: Journal - Journal entries are written down in a journal or book of original entry before being…
Q: Cecil cashed in a Series EE savings bond with a redemption value of $13,000 and an original cost of…
A: Introduction: When you borrow money, whether, from an individual, another firm, or a bank, you must…
Q: Which of the following occurs when the board of directors declares a 3-for-1 stock split on 17,000…
A: A stock split is defined as the method by which the number of shares of the company is increased and…
Q: A company has earnings per share of $3.75 and P/E of 47. What is the stock price? Question 12…
A: Stock Price = Earning per share x Price earning ratio Here we have given Earning per share = $3.75…
Q: Apr. 2. Sold merchandise on account to Peking Palace Co., $36,730. The cost of the goods sold was…
A: The allowance for doubtful accounts has the credit balance. The net account receivables is…
Q: Chad Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated…
A: Introduction:- Leases means lessor allows another party (Lessor) to use the property/asset in…
Q: Pumpkin Corporation issued 10,000 shares of common stock on January 1, 2024. The stock has no par…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Required information Pure gasoline has an energy density of 15.600 BTU per galon, while ethanol has…
A: Price - A price is the amount of money that is (often not negatively) exchanged from one party to…
Q: P9-1B At December 31, 2011, Artie Kendall Imports reported the following information on its balance…
A: When a customer is unable to pay an outstanding debt owing to bankruptcy or other financial…
Q: 2) A 10 year bond with 5 years remaining is sold at a discoung of $4.12 .If the face and redemption…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On October 1, 2020, CO. A PURCHASED EQUPMENT FOR $210,000. The estimated useful life of the…
A: Depreciation is a non cash expense which is incurred in every organization. It reduces the value of…
Q: counting 5% 0% 15% Costs $16200 10600 106000
A: Answer : Company use reciprocal method of allocating support cost : Total cost of Personnel…
Q: 23. they invested the full amount into a conventional IRA 6,000 and also the maximum for their two…
A: As Per Rule IRA in 2023 Should Be Contributed Lesser of Taxable Earning or 6500.
Q: current year is $42,000. What is the amount of net income to be allocated to Amber? (Do not round…
A: Capital contribution ratio is profit sharing ratio between Amber and Charlie. Capital contributed…
Q: Fancy Clothing Company is authorized to issue 110,000 shares of $2 par common stock. The company…
A: Given in the question: Authorized Number of Shares 110000 Par Value of Common Stock $2…
Q: Instructions (a) Set up control and subsidiary accounts and enter the beginning balances. Do not…
A: Accounts receivable is one the current assets of the company. It shows the amount which a firm will…
Q: Q2 Which of the following methods of accounting are permitted under IAS 31? Select one: a. Full…
A: Consolidation accounting is the procedure used to merge the financial outcomes of multiple…
Q: During 2020, Crane Inc. had sales revenue $1328000, gross profit $728000, operating expenses…
A: Income tax expense : Income tax expense is the taxes owed by the company to a taxing authority.…
Q: Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…
Q: Harrison Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2023…
A: Property, plant and equipment are long term assets of business, to be used, in the administration or…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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. 3,370,000Hyde 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. 6.73Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- 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.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.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.
- 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.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.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
- 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.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.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.