The capital accounts of Britannia Company as of yearend 2014 are as follows: Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained Earnings - 3,135,000 The company's ordinary shares are currently selling at P20 How much is the net effect of a 10% share dividend to the company's reserves? How much is the net effect of a 30% share dividend to the company's total shareholders' equity? How much is the net effect of a 4-for-1 share split to the company's legal capital?
Q: Theodore Company has 100,000 shares of P10 par value common stock issued and outstanding. Total…
A: Price-earnings ratio = Market value per share / Earnings per share where, Earnings per share = (Net…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: Earnings per share is one of the important calculation in business. It shows how much net income or…
Q: PLEASE PROVIDE COMPUTATION!
A: Equity Share - Share capital and equity finance are other names for equity capital. It is referred…
Q: The shareholders' equity section of Hale Co. on December 31, 2018 showed the following: Ordinary…
A: The stock dividend is declared from the retained earnings of the business.
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: According to the given question, we need to compute the earnings per share. Earning per share:…
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: ETC Co. has been paying regular semi-annual dividends to its shareholders. The following are the…
A: Calculation of dividend paid in first semi annual period Particulars Amount issued and…
Q: On December 31, 2022, Voice Company had 500,000 ordinary shares issued and outstanding, 400,000 of…
A: SOLUTION- COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES - DATE NUMBER OF SHARES MONTHS…
Q: On December 31, 2014, Brave Corporation reported the following on its balance sheet: Cash 22,000…
A: Share premium is the excess amount paid or received over the par value of share.
Q: opez Corporation reported the following in its December 31, 2009 balance sheet: Common stock , par…
A: Retained Earnings is the excess income generated by the company which will be used by the business…
Q: Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary…
A: The shares in treasury stock are not outstanding as these are not with the shareholders and company…
Q: Presented below is the equity section of Coca-Cola Corporation at December 31, 2022: Share…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: DiCenta Corporation reported net income of $270,000 in 2017 and had 50,000 shares of common stock…
A: Formula to calculate diluted earnings per share; Diluted EPS = Net income / weighted average number…
Q: The ABC's statement of financial position shows total shareholders' equity of P3.150.000 as of…
A: Formula used: Book value per share = Total Shareholders equity / Outstanding shares Division of…
Q: Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share…
A: Cost per share of Treasury Shares = Total value of Treasury shares / Number of shares purchased
Q: The VWX's statement of financial position shows total shareholders’ equity of P3,150,000 as of…
A: Book value per share = Total shareholders equity/Number of common equity share outstanding Total…
Q: Marigold Corporation had net income of $1650000 and paid dividends to common stockholders of $400000…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: Grove Plc’s issued share capital is currently 8,000,000 ordinary shares of $0.50 each. On October 1,…
A: Basic EPS - Basic earning per share is the industry standard that is used by investors to analyze a…
Q: Evans Company reported net income of $1,050 million in 2016. The weighted average number of common…
A: Earnings per share refer to the amount earned by each stockholder. This can be identified by…
Q: Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share…
A: No. of ordinary shares issued = Ordinary share capital / stated value per share No. of ordinary…
Q: he ABC's statement of financial position shows total shareholders’ equity of P3,150,000 as of…
A: Book value per share = Balance of Stockholders Equity/ Number of shares of common stock outstanding…
Q: Below is the Shareholders' equity of Dexter Co. on Dec. 31, 2020: 12% Preference Capital, P100 par…
A: The book value per ordinary share is calculated by dividing the equity available to shareholders by…
Q: FRANCE, INC. began operations in January 2016, and reported the following results for each of its…
A: Answer: Book Value: It is the equity of the company and the book value per share is indicated the…
Q: What is the payout ratio for Alcantara Corporation for the year ended 2011? b. What is the book…
A: Book value of common equity: Book value is the value of equity excluding the preferred stock it is…
Q: The Meg Company began operations in January 2013 and reported the following results for each of its…
A: The question is based on the concept of Financial Accounting.
Q: FRANCE, INC. began operations in January 2016, and reported the following results for each of its…
A: Book Value Per shares: It is the minimum value of equity per-share basis and is calculated by…
Q: The shareholders' equity section of H Co. on December 31, 2018 showed the following: Ordinary share…
A: solution number of ordinary share for share dividends =(issued share – treasury share ) =(105000 –…
Q: The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20…
A: Ordinary shares- Ordinary shares, also known as common shares, are stocks sold on community barter.…
Q: Concord Inc. had net income for 2020 of $5,920,000. The company had 2,200,000 of common shares…
A: Ratio is a tool which is used to measure the firm’s performance and growth by establishing relation…
Q: Bonita Corporation had net income of $218000 and paid dividends to common stockholders of $44000 in…
A: Price earnings (P/E) ratio refers to a ratio which shows the relationship between the earnings per…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: EPS is the earning share hares and is calculated by dividing the net income available to the…
Q: On June 30, 2020, when JDE Co's share was selling at P 65 per share, its capital accounts were as…
A: Working note: Computation of share dividend: Share dividend=Share capital×Rate of…
Q: National Company has 100,000 shares of P10 par value common stock issued and outstanding. Total…
A: Earning Per Share = Net incomeNumber of shares outstanding =…
Q: Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share…
A: No. of ordinary shares issued = Ordinary share capital / stated value per share No. of ordinary…
Q: Ale Corporation had net income of $2,040,000 and paid dividends to common stockholders of $400,000…
A: Earnings per share = Net income/Weighted average of shares outstanding Price-earnings ratio = Market…
Q: Davidson Company has 10,000,000 common shares issued and 500,000 shares of treasury stock. The…
A: No. of common shares issued and outstanding = No. of common shares issued - shares of treasury…
Q: The capital accounts of Britannia Company as of yearend 2014 are as follows: Ordinary Share Capital…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: A company's profit after tax for the year to 30 June 2016 was P10,000,000. The company's issued…
A: Weighted average no. of outstanding ordinary shares = Beginning no. of Ordinary shares issued and…
Q: For the year 201B, ABC Company's return on common stockholders' equity was 12.5%. Its average…
A: The ratio analysis is performed to analyze the different aspects of financial statements of the…
Q: The capital accounts of Britannia Company as of yearend 2014 are as follows: Ordinary Share Capital…
A: solution : given Ordinary Share Capital (P10 par) - 500,000 Share Premium - 250,000 Retained…
Q: Story Corporation had net income of $300,000 in 2018. The weighted average number of shares…
A: The answer is as fallows
Q: Strick Corp. had S00,000 net income in 2022. On January 1, 2022 there were 200,000 ordinary shares…
A: Calculation of Basic Earning per share: Basic Earning per share = Earning for Equity Shareholder /…
Q: Compute for the book value of preference shares on December 31, 2018 and book value of ordinary…
A: FRANCE, INC. began operations in January 2016, and reported the following results for each of its…
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…
The capital accounts of Britannia Company as of yearend 2014 are as follows:
- Ordinary Share Capital (P10 par) - 500,000
- Share Premium - 250,000
Retained Earnings - 3,135,000
The company's ordinary shares are currently selling at P20
- How much is the net effect of a 10% share dividend to the company's reserves?
- How much is the net effect of a 30% share dividend to the company's total shareholders' equity?
- How much is the net effect of a 4-for-1 share split to the company's legal capital?
Step by step
Solved in 2 steps
- The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)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)Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.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 375. The bonds are classified as a heldtomaturity 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 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 (l). 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 1. Journalize the selected transactions. 2. 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.Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
- 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. 6.73Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.