T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on March 5, 2020?
Q: SKIPPY Company reported the following amounts in the equity section of its December 31, 2019…
A: The retained earnings are the earnings of the business that are retained for the future purpose of…
Q: J Corporation issued 400,000 ordinary shares when it began operations in 2019 and issued an…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: Dividend Declared & Paid: Dividends declared refers to dividends that have been approved by the…
Q: JST Machinery began business in 2020 by issuing 90,000 shares of $5 par common stock for $8 per…
A: Here in this question, we are required to calculate how much amount should be reported as common…
Q: On 1st January 2019, Edmond Corporation is authorized to issue 80,000 shares of $100 par value, 3%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Accounting Cherry Corporation had 600,000 shares of common stock outstanding during 2020. In…
A: Answer a:- EPS = $1.67. Explanation:- Computation of EPS:- EPS = Net Income / Outstanding shares…
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: omestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: As mentioned in the question preference shareholders are cumulative in nature. Cumulative preference…
Q: In 2018, Broyles, Inc. reacquired 3,000 shares of its common stock at $55 per share. In 2019,…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020
A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…
Q: Skysong Corporation began business in 2020 by issuing 79000 shares of $5 par common stock for $6 per…
A: The statement of shareholders equity defines the total outstanding shares and other stock related to…
Q: On December 31, 2020, Dow Steel Corporation had 780,000 shares of common stock and 318,000 shares of…
A: The weighted average number of shares is the average sum of shares purchased during the period.
Q: Sarasota Corporation had 109.200 shares of stock outstanding on January 1, 2020. On May 1, 2020,…
A: Answer:- Weighted-average number of shares outstanding meaning:- The weighted average number of…
Q: Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 shares of $110…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Shamel Company has the following portfolio of securities at April 30, 2020, its last reporting date.…
A: Trading securities are purchased by the firm to sale them in short period of time in order to…
Q: Prepare the necessary journal entries in 2019 when the stock-option plan was adopted, in 2020 when…
A: In the accounting process journal entries are the initial step that helps the business to record…
Q: Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 shares of $110…
A: Note - The first part is being solved. Please post a separate question for balance parts. Regrets…
Q: Bickle's Pickles Inc.'s charter authorizes the company to issue up to 100,000 common shares. As of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares…
A: Journal entries No. Date account titles and explanation Debit…
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: Blossom Corporation began business in 2020 by issuing 96000 shares of $5 par common stock for $8 per…
A: Answer: Common stock of $480000
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: It is given that, preferred stock is cumulative in nature. if the preferred stock is cumulative in…
Q: At December 31, 2019, Talbot Corporation had 90,000 shares of common stock and 20,000 shares of…
A: Diluted Earnings per Share = Adjusted Net income /Weighted Average Shares
Q: Overland Corporation is authorized to issue 250,000 shares of $1 parvalue common stock. During 2020,…
A: (a).Prepare the journal entry to record item 1.
Q: Berg Company adopted a stock-option plan on November 30, 2019, that provided that 70,000 shares of…
A: Stock option: Stock option is the stock-based compensation plans provided in the form of an option…
Q: FAME Corporation is authorized to issue 1,000,000 shares of $1 par value common stock, and 200,000…
A: Common shares can be defined as a type of security which gives the holder the ownership right in the…
Q: Nash Corporation is authorized to issue 52,000 shares of $5 par value common stock. During 2020,…
A: 1. Common Stock - Common Stock is the shares issued to the common shares holders of the company. It…
Q: Gannon company acquired 20,000 shares of its own common stock at $20 per share on February 5, 2020…
A: The shares wer acquired at a cost of $20per share, hence at the time of sale. Treasury stockmust…
Q: On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for…
A: The question is related to repurchase of treasury stock under cost method. In the given question the…
Q: Flexsteel acquired 1,000 shares of its $1 par value stock for $44 per share on April 4, 2019 and…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: Tamarisk, Inc. is authorized to issue 2,250,000 shares of $1 par value common stock. During 2020,…
A: Shares bought back by the company are called treasury stock. Treasury stock is deducted from the…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: •…
A: Cash received for preferred in excess of par value of preferred shares will be credited to…
Q: On January 1, 2020, Riverbed Corporation issued $3,600,000 of 10-year, 8% convertible debentures at…
A: Journal Entries: No. Date Account Titles and Explanation Debit ($) Credit ($) (a)…
Q: Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter market. At…
A: Shareholders Equity section of balance sheet shows all total amount attributable to equity…
Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…
A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…
Q: Loxery Ltd initially issued 300,000 of OMR1 par value common stock for OMR 1,000,000 in 2017. In…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The Lily Company, a calendar year entity, reported net income of $300,000 for 2019. At the start of…
A: Basic EPS = Net IncomeWeighted average shares outstanding Diluted EPS = Net Income- Preference…
Q: On January 1, 2020, Alpha Aviation issues 105,000 shares of stock. Shortly thereafter, Delta Tech…
A: Dividend refers to the profit distribution to its shareholders and when the business earns the…
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Diluted Weighted Average Shares is the number of shares used to measure Diluted EPS. This is used as…
Q: Bramble Company adopted a stock-option plan on November 30, 2019, that provided that 63,700 shares…
A: Definition: Stock option: Stock option is the stock-based compensation plans provided in the form of…
Q: Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During…
A: Treasury stock: When a company repurchases its common stock issued earlier from the stock holders,…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Share dilution occurs when a business issues new stock, reducing a current shareholder's ownership…
Q: On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On…
A: Under the treasury stock method, the common stock are held as treasury stock and they are not…
Q: In late 2020, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of…
A: The question is based on the concept of Financial Accounting.
Q: 1. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance…
A: Given: The transactions of Nicklaus corporation during the year 2021 is given.
Q: On December 31, 2020, Shenandoah Company had 100,000 shares of common stock outstanding and 40,000…
A: Basic earning per share is earning attributable to per common share. And diluted earning per share…
T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 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. 3,370,000Tama 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.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?
- 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.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.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.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.
- 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?Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?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%.