The company declared and distributed a 2-for-1 stock split on 400,000 shares of $10 par value common stock outstanding. What amount would decrease retained earnings? $200,000 $2,000,000 O $0 O $4,000,000
Q: Coolsys Corporation issued 30,000 shares of no-par value ordinary shares for €29.50 per share. Which…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Swifty Corporation sold 310 shares of treasury stock for $35 per share. The cost for the shares was…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Prepare journal entries to record the transactions.
A: Treasury stock indicates the shares of the company bought back which in result decreases the…
Q: On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value)…
A: In the context of the given question, two independent cases are there. In case no. 1, the Board of…
Q: At December 31, 20x4 and 20x5 Maki Corporation had outstanding 30,000 shares of P100 par value 6%…
A: The preference shareholders have the priority to receive the dividend before any other type of…
Q: Pettygrove Company had 1,100,000 shares of $10 par value common stock outstanding. The amount of…
A: Common Stock Account: This account includes all amounts which have been received against issue of…
Q: A company sold 10,000 shares of its own $1 par value common stock for $60,000. The entry to record…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: For items 29 to 31: The Merry Corporation has the following classes of stock outstanding: Common…
A: Dividends are the part or share of profits that is being distributable or allocated to the…
Q: ZY Company's Stockholders' equity is comprised o 1,000 shares of P2 par common stock, P4,000 of…
A: Premium per share = Market price per share - Par value per share = P5 - P2 = P3 per share
Q: GR Company had outstanding 2,000 shares of P100 par value 8% cumulative preference share and 30,000…
A: Given that, 8% cumulative preference share of P100 par value outstanding = 2,000 shares Ordinary…
Q: ECE Corporation had the following shareholder's accounts before the declaration of dividend.…
A: A dividend policy is a policy in which the company decides how much profits should be distributed to…
Q: A company with 106,000 authorized shares of s8 par common stock issued 50,000 shares at $16.…
A: The stock dividend is the dividend paid in the form of shares instead of cash.
Q: ARIES Inc. had the following transactions in the ordinary shares of May Corporation: anuary 5 Bought…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: A company acquired 97,000 shares of its common stock at a price of $26 per share and accounted for…
A: Treasury stock: It refers to the own stock bought back from the existing stockholders. As a result…
Q: 1. Prepare a journal entry for each of the following transactions. a) Miracle Body Corporation sells…
A: A journal entry records a business transaction in the accounting system for an organization. Every…
Q: CPA Company had these equity accounts: Preference share capital, P500 par, 2,200 shares Treasury…
A: Working notes:
Q: Platinum Corporation bought 160,000 shares of Ore Corporation for P60 each. One month from purchase,…
A: The dividend income is received on the number of shares in hand with the investor.
Q: The shareholders' equity of Orange Company shows the following balances on December 31, 2012:…
A: Ordinary shares are those that are issued and owned by shareholders'/people and provide the right to…
Q: The company with the common equity acounts shown here has declared a 15 percent stock dividend when…
A: Par value will get reduced as follows:
Q: The stockholders' equity section of the balance sheet for Pawnee Corporation appeared as follows…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: At December 31, 20x5 and 20x4, Rose Corp. had 180,000 shares of common stock and 10,000 shares of…
A: Earnings per share refers to the amount of Net income allocated to every single shares issued and…
Q: DY Corporation declared the regular quarterly dividend of P2 per share. It had issued12,000 shares…
A: Shares outstanding = Shares issued - Treasury stock Shares outstanding = 12,000 - 2,000 Shares…
Q: Luffy Company declared and distributed 10% stock dividend with fair value of P 1,500,000 and par…
A: The entity distributes the dividend in the form of cash and stock. If there is no investment…
Q: Assume that a company paid $6 per share to purchase 1,100 shares of its $3 par common stock as…
A: Total equity will be decreased by = No. of common stock purchased as treasury stock x Amount paid…
Q: Paltrowski Company issued 1 million shares of no- par common stock with a stated value of $5. The…
A: Solution:- Introduction:- Every company can issue shares on the following basis as follows:- Par…
Q: Below is the shareholders" equity section of Nelson Company on December 31, 2014: Preference share,…
A: The book value of a share is used for analyzing the overvaluation and undervaluation of the stock.
Q: A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The…
A: A stock split is when the company board feels that the price of a stock is trading too high in…
Q: Compute for the dividend per share for preference share.
A: Dividend for preference share is calculated by multiplying the dividend percentage with the face…
Q: CPA Company had these equity accounts: Preference share capital, P500 par, 2,200 shares Treasury…
A: Stock dividend can be referred to as the amount of retained earnings which is distributed to the…
Q: The board of directors of AI Rehma SAOG recently announced a 12.5% stock dividend. Assuming that the…
A: Stock dividend means when shares of the company are issued as dividends to the shareholders. It will…
Q: Flagstad Inc. presented the following data. Net income $2,500,000 Preferred stock: 50,000…
A: Weighted average outstanding Common stock = (750,000 + 300,000*8/12 - 150,000*5/12)*2/1 = 1,775,000…
Q: The shareholders’ equity of Nicko Corporation is presented below: 10% Preference Share, 2,000…
A: Par value per share = Preference Share capital / no. of share = P200,000/2000 shares = P100 per…
Q: Assume that a company paid $6 per share to purchase 1,100 shares of its $3 par common stock as…
A: The correct answer is Option (c).
Q: The POR Corporation reports the following balances of January 1, 2021: Ordinary share capital, P26…
A: Dividend is declared and paid to the shareholders of the company as a return on their investment.…
Q: Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, share issuances…
A: Earning per Share: It indicates a company's profitability and is calculated by dividing a company's…
Q: The following transactions took place during January 2022 Jan 4 Purchased 24,000 shares of its own…
A: Treasury shares are the shares which are bought back by the company which was previously issued. It…
Q: Kaldi Company has 20.000 shares of $10 par value, 5 cumulative preferred stock and 200,000 shares of…
A: Given information: Preference shares 20,000 of $10 par value Preference dividend is 5% Common shares…
Q: Pettygrove Company had 1,500,000 shares of $10 par value common stock outstanding. The amount of…
A: Common Shares Outstanding = 1500000 Par Value Per Share = $10 Common Stock Account Balance = 1500000…
Q: Taha Company announces a 4:1 stock split. Prior to the stock split, Taha had 1,000,000 shares of…
A: Given that: Stock split = 4:1 Existing number of shares = 10,00,000 shares Share price = $0.20 per…
Q: For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00…
A: Treasury stock refers to antecedently outstanding stock that's bought back from stockholders by the…
Q: On June 30, 200E, a corporation declared a 10% ordinary stock dividend on its 100,000 ordinary…
A: The dividend can be declared and paid to the shareholders from the retained earnings of the…
Q: B. Z Corporation has 1,000 shares of K20 par value common stock outstanding. The company is…
A: The stock split is a component of financial restructuring in which the corporation makes decisions…
Q: The Corporation shareholders' equity section of the Statement of Financial Position includes the…
A: Preference shares are one of the type of shares which is being issued by the company. Shares can be…
Q: Beverly Company announces a 200% stock dividend. Prior to the stock dividend, Beverly had 1,000,000…
A: Note: Par value of Common stock will be the same even after issue of Stock Dividend.
Q: ch Co. reported $515,000 net income for the current year. The company began the current year with…
A: Solution: Earning per share = Earnings for common stockholders / Weighted average outstanding shares…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Treasury Stock, No Par Propst-Steele Production Corporations accounting records provide the following information: 1. Issued 5,000 shares of no-par common stock at 15 per share. 2. Issued an additional 5,000 shares of 110-par common stock at 17 per share. 3. Reacquired 500 shares of its no-par common stock at a cost of 12.50 per share. 4. Reissued 200 of its treasury shares at 14 per share. 5. Reissued the remaining treasury shares at 11 per share. Required: Prepare journal entries to account for the preceding stock transactions of Propst-Steele Production, assuming it uses the cost method for treasury stock.Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year: (a) Issued 8,000 shares of no-par common stock with a stated value of 5 per share for 40,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 5 per share for 33,000 cash. (c) Issued 5,000 shares of no-par, 6% preferred stock with a stated value of 15 per share for 75,000 cash. (d) Issued 10,000 shares of 5 par common stock for land with a fair market value of 50,000. (e) Issued 20,000 shares of 5 par common stock with a 7 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 50 par, 8% preferred stock for land with a fair market value of 405,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following stock transactions during the year: (a) Issued 5,000 shares of no-par common stock with a stated value of 10 per share for 50,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 10 per share for 63,000 cash. (c) Issued 3,500 shares of no-par, 6% preferred stock with a stated value of 22 per share for 77,000 cash. (d) Issued 10,000 shares of 10 par common stock for land with a fair market value of 100,000. (e) Issued 11,000 shares of 10 par common stock with an 11 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 30 par, 6% preferred stock for land with a fair market value of 243,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.