The following information is available for Baton Corporation: January 1, 2021 Shares outstanding 4,000,000 April 1, 2021 Shares issued 640,000 July 1, 2021 Treasury shares purchased 240,000 October 1, 2021 2-for-1 Stock Split The number of weighted average shares outstanding between April 1, 2021 and July 1, 2021 is: O 2,320,000. O 8,720,000. 2,000,000 O 4.400,000
Q: Frank works for 7 hours for 5 days a week. He is paid RO 6 an hour for regular time and time and a h...
A: Gross pay is an amount that is used to calculate the wages (hourly) and salary of an employee. It is...
Q: Consider the following slide: Question 4-1.png On this slide: Group of answer choices Sales, c...
A: The variance is the difference between the actual data and standard output of the production. The v...
Q: Liabilities Are things of value used by the business in its operation. O a. b. Are future economic b...
A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new ...
Q: On December 31, 2018, ABC Corp. acquired Garlic Corp.’s P1,000,000 notes for P927,880. The market in...
A: The impairment is recognized when the value of assets is lower than its book value.
Q: tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P 1...
A: The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending inv...
Q: Prepare the journal entries to record the pension expense and the company's funding of the pension p...
A: Journal entry is the first step in recording financial transactions in the books of company. It must...
Q: What was the Federal Estate Tax: Prior to the Bush Tax Cuts? After the Bush Tax Cuts? Did the Obama ...
A: Administration Exemption level Tax Rate Years in Effect 1. Prior to Bush Tax Cuts (Bil Clinton, 19...
Q: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding, 400...
A: Answer) Calculation of Earnings per Common Share Earnings per common share = Earnings available for ...
Q: ring notes payable . Principal is due in three equal payments every December 31 beginning on Decembe...
A: It carry defined rate of interest and repayable after certain period of time. Non interest bearing n...
Q: 1. Abdullah bin Ahmad has entered into a Mudarabah contract with Bank Amanah Berhad in which he prov...
A: Solution Profit & loss statement is the financial statement that summarizes the revenue ,costs a...
Q: The articles of incorporation were received, authorizing Reverse Corporation to issue 100,000 shares...
A: Ordinary shares refer to the equity share capital of the company. If the company issues its ordinary...
Q: Its omission at year end will result to understated net income Group of answer choices A. Accrued e...
A: Lets understand the meaning of all the options. Accrued expense means a expense which is incurred an...
Q: I need the second Req please! Thank you.
A: Solution Cost of production refers to the all the costs that are involved when a company offers a se...
Q: The premium on a three-year insurance policy expiring on December 31, 2022 was paid in total on Janu...
A: >Adjusting entries are recorded, as part of completion of accounting cycle. >These are mad...
Q: Jade, Kale, And Lilo are in the process of liquidating their partnership. The balance sheet and the ...
A: The gain or loss on realization is calculated by deducting the capital balances with the actual amou...
Q: In accounting for a defined-benefit pension plan __the expense recognized each period is equal to ...
A: Defined benefits plan is plan of pension in this employer provides fixed amount of pension on retire...
Q: A listed company has made a profit after tax of RM1,500,000 in the year ended 31 December 2021. It h...
A: Earnings per share = (Net income - dividend) / No. of ordinary share outstanding Where, Preferred d...
Q: The following information is available for Bunny Corporation: January 1, 2021 Shares outstanding 3,0...
A: Basic earnings per share = (Net income - Preferred dividend) / Weighted average no. of common shares...
Q: In October, November, and December, CVM Inc. expects to sell 50,000, 48,000, and 51,000 units, respe...
A: Budgeted production = Budgeted sales + Desired ending inventory - Beginning inventory Where, Desire...
Q: GIVEN THE FOLLOWING DATA, COMPUTE FOR THE FOLLOWING: 1. STRAIGHT LINE METHOD 2. ARITHMETIC GEOMETRIC...
A: Given the data as Year Sales x Supposed this is Yc (straight line) Yi+1 (Geometric) 2011 4...
Q: Under non-integrated accounting system, the account made to complete double entry is: General ledger...
A: A non integrated accounting system maintains separate ledgers for recording cost and financial accou...
Q: Vaughn Manufacturing has outstanding accounts receiva year of $6.50 million. There is also a debit b...
A: When the amount of money is no longer collectible and the amount remains due is known as bad debt.
Q: Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-or...
A: Applied overhead is recorded as a kind of direct overhead charge in the cost-accounting technique. T...
Q: From the following information, find the branch profit or loss of the branch: PARTICULARSs AMOUNT Op...
A: Cost of goods sold = Sales/(1 + 0.20) = 120,000/1.20 = 100,000
Q: What is the minimum taxable benefit that Larry must include on his 2019 personal tax return
A: Minimum taxable benefit is the value of the benefits which the employee has received from the employ...
Q: Tijuana Brass Instruments Company treats dividends as a residual decision. It expects to generate $2...
A: A dividend is the distribution of a part of a company's earnings to a selected group of shareholders...
Q: Exercise 7-18 (Algo) Notes receivable [LO7-7] On June 30, 2021, the Esquire Company sold some mercha...
A: Notes receivable is considered a negotiable instrument. it is classified under current assets if the...
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of t...
A: While preparing books of accounts, there can be two kinds of mistakes: Error of omission and error o...
Q: The accumulated benefit obligation measures __the shortest possible period for funding to maximize...
A: A pension plan refers to the plan that an individual or the company made for the future of their emp...
Q: The COSO Enterprise Risk Management Framework ___ A. stresses that effective risk management is com...
A: Risk Assessment: A risk assessment is the consolidated exertion of recognizing and examining potenti...
Q: Activity 1. Prepare an CFI/SCF Instruction: Show you solution in a sheet of paper with a complete re...
A: 1. Statement of Cash Flow - Statement of Cash flow is the statement that shows the actual cash posit...
Q: Review of internal control system is very important for the auditor as the effectives of internal co...
A: Ans. Internal control policies are implemented and executed by management. An Auditor is required to...
Q: If the income statement error is discovered in a subsequent accounting period, what action is to be ...
A: Solution Nominal account is a general ledger account pertaining to all income , expenses , losses an...
Q: If the statement of financial position error is discovered in a subsequent accounting period, what a...
A: The correct answer is given in the following steps for your reference.
Q: If a partnership is liquidated, partners ( except for limited partners) are liable to the extent of ...
A: Partnership is an agreement by two or more individuals to do a business together and the profit or l...
Q: Mrs A (aged 66), a South African tax resident, earns the following income for the year ending 28 Feb...
A: Given, 1. Salary per month -R125 000 2. Dividends from a foreign listed company -R30 000 3. Interest...
Q: or. The product is owne it is delivered from ABC i do you think will be th
A: An inventory system refers to the process of a company tracks its goods starting from the point of p...
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of t...
A: Correct entry: Debit: Cash Credit: Interest income Entry recorded: Debit: Cash Credit: Interest ex...
Q: If the statement of financial position error is discovered in a subsequent accounting period, what a...
A: The error in the financial statement could be cause due to any mathematical mistakes or other reason...
Q: Fred is considering three job offers in advertising. A full-time position as a coordinator that pay...
A: The after tax income of an individual is calculated by deducting the paid taxes from the income for ...
Q: Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the enti...
A: This is a multiple question and we find out adjusting carrying values of land on different dates:
Q: Which of the following statements is not correct regarding combined statement of financial position ...
A: The combined statement of financial position errors and income statement errors effects both the inc...
Q: For Sheridan Company, variable costs are 70% of sales, and fxed costs are $179,400. Management's net...
A: Formula: Required sales in dollars = ( Fixed cost + Targeted income ) / contribution margin ratio
Q: Fred is considering three job offers in advertising. • A full-time position as a coordinator that pa...
A:
Q: Non-recognition of deferral at the end of the accounting period will Group of answer choices unders...
A: Ans. In case of non-recognition of deferral the income or expenses which is deferred but not recogni...
Q: Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market t...
A: Lower of Cost per Unit or Market Value per Unit As the name saying, we record inventory on lower of ...
Q: On January 1, year 1, Bray Company purchased for P 240,000 a machine with a useful life of ten years...
A: Revised depreciation = (net carrying value - residual value) / remaining useful life Where, Remaini...
Q: Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year I...
A: The amount of cost recognized by a business in an accounting period for the government tax on its ta...
Q: The collection of customer’s account is credited to accounts payable. What is the effect of the erro...
A: Ans. When a customer pays the journal entry to be passed is : Cash a/c Dr. xxxx T...
Q: The projected benefit obligation is the measure of pension obligation that __is not sanctioned und...
A: The three components of pension expense 1. Service cost, 2. the interest cost, 3. expected return o...
Step by step
Solved in 2 steps
- Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at 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.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.
- 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. 3,370,000Lyon 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.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?
- 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. 190,000Anoka 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?
- 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.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.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.