The capital accounts for Red Stone Company on July 1,2020 are as follows: Ordinary Share Capital, P 10 par, 100, 000 shares issued and outstanding P 1,000,000 Share Premium 500,000 Retained Earnings 3,135,000 The company's ordinary shares are currently selling at P20. REQUIRED: Journalize the following independent transactions: a.) A 10% bonus issue is declared and issued b.) A 30% bonus issue is declared and issued c.) A 2-for-I share split is declared and issued
Q: Bernabe Company reported the following equity accounts in January 1, 2020: Share Capital, P20 par…
A: Formula: Share premium = Beginning share premium - Shares reacquired value
Q: TJH Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price.
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…
A: Retained Earnings: When a company's direct and indirect expenses, income taxes, and dividends to…
Q: The accounts and balances that follow are from Comel Bhd's records on 31 December 2020. Items RM…
A: Step2 in solution.
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: Retained earnings are the accumulated free reserves of the entity. Dividends paid are made from the…
Q: The entry to record the sale on the books of Image should include:
A: A. Total par value of share = P 360000 B. Total number of treasury share = 2000 C. Par value of each…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: The treasury share are the shares that are repurchased by the company fron its own issued shares.
Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…
A: You have posted more than one unrelated questions, so as per our policy only first question is…
Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…
A:
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Share premium on shares sold = (No. of shares sold x sale price per share) - Cost of shares sold =…
Q: The ABC Company began operations in January 2018 and reported the following results for each of its…
A: Introduction: Preference share holders are those capital providers for the company who receives…
Q: Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference…
A: Contributed capital: It is the total value of shares issued during a period. The shares issued…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: Shareholders' equity is the sum total of all the money which belongs to the owners of a company. It…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Shares are used to divide the capital of the company into small parts, so that it is will be…
Q: CFAS Company shows the following information on Its December 31, 2022 equity items: Authorized share…
A: Calculation of amount to be reported in Shareholders' Equity Amount Shareholders' Equity:…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: No. of shares = Share capital / Par value per share = 5,000,000/100 = 50,000 shares
Q: At December 31, 2020 Paid-in Capital Common Stock, $9 par value, 3,000,000 shares authorized,…
A: The shareholders equity consists of the shares issued by the company.
Q: The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares,…
A: Formula: Total dividends = Preferred dividends + Ordinary dividends
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: No. of shares issued from donated shares = No. of donated shares x 1/2 = 20000 shares x 1/2 =…
Q: Ihe shareholders' equity of the ABA Company on January 1, 2020 is presented below: Share capital,…
A: Shareholder’s equity is the difference between total assets and total liabilities. It refers to the…
Q: . During 2021, CAPTAIN AMERICA Company had two classes of shares issued ind outstanding for the…
A: Calculation of Basic Earnings per share Basic Earnings per share = Earnings available for Common…
Q: The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following:…
A:
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: the par value of shares 25000000/25000 100 share premium…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: No. of shares issued from donated shares = No. of donated shares x 1/2 = 20000 shares x 1/2 =…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: What should be reported as total shareholders’ equity on December 31, 2020?
A: Total Shareholders' equity computation includes: a) Outstanding shares b) additional paid up…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: 1) The total amount of dividends on preference and ordinary shares. 2) The Total shareholders’…
Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…
A:
Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…
A: The retained earnings are the balance of the net income retained for future requirement such as…
Q: Filomero Company provided the following information on January 1, 2020: Share capital, 275,000…
A: The dividend is paid from the retained earnings of the business and can be paid in the form of cash…
Q: The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account…
A: Total value of share capital held by a company includes both ordinary and preference share capital.
Q: The JHONG Corporation had the following balances in its Shareholders' Equity accounts as of December…
A: The treasury shares include the own shares of company purchased from the shareholders of…
Q: he Gangnam Company began operations in January 2019 and reported the following results for each of…
A: calculation of book value of ordinary share are as follows
Q: he stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: The accounts below appear in the December 31, 2020 trial balance of Moon Company: Authorized share…
A:
Q: On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par…
A: The retained earnings of the business includes the net income or loss earned, dividend declared,…
Q: Using the information provided below, what is the share premium balance on December 31, 2021? The…
A: Share premium is the difference between the total amount of money received for the shares issued and…
Q: The shareholders’ equity section of the statement of financial position of LW Corporation showed the…
A: Bonus issue is free offer of additional shares to existing shareholders. During 2021, the…
Q: basic earnings per share for preference shareholders
A: In respect of cumulative preference shares, dividend is accumulated until paid. Hence, the…
Q: The capital accounts of Gripit Company as of yearend 2021 are as follows: Ordinary Share Capital…
A: A stock dividend is considered a small stock dividend if the number of shares being issued is less…
Q: Meranti Maju Bhd has the following equity balances at 31 December 2019. RM'000 Share Capital -…
A: The dividends may be paid either through cash or by issuing the shares to the existing shareholders.…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On January 1, 2020, Marimar Company reported the following shareholder's equity: Share capital,…
A: The Shareholder's equity shows the amount of contribution by the owners to the capital of the…
Q: Part A The equity section of Island Ltd as at July 1, 2020 is as follows: Share capital 2,000,000…
A: The journal entries for the issue of ordinary shares, declaration and payment of interim Dividend…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…
A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…
Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…
A: The basic earnings per share is calculated as net income available to common shareholders divided by…
Step by step
Solved in 4 steps
- Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.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.
- Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?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?Cumulative Preferred Dividends Capital stock of Barr Company includes: As of December 31, 2018, 2 years dividends are in arrears on the preferred stock. During 2019, Barr plans to pay dividends that total S360.000. Required: Determine the amount of dividends that will be paid to Barrs common and preferred stockholders in 2019. If Barr paid $280,000 of dividends, determine how much each group of stockholders would receive.
- Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?Selected 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.
- 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. 190,000Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stockCash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?
