The following information is available for Teal Company at December 31, 2020, regarding its investments. Securities 3,200 shares of Myers Corporation Common Stock 1,200 shares of Cole Incorporated Preferred Stock Cost Account Titles and Explanation $43,100 24,300 $67,400 Fair Value $52,600 20,800 $73,400 (a) Prepare the adjusting entry (if any) for 2020, assuming no balance in the Fair Value Adjustment account at January 1, 2020. Neither of Teal's investments result in significant influence. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit
Q: 4 Blossom Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are…
A: 3 Golden rules of accounting are Real account : As per real account rule we should what comes in…
Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Required: 1. Prepare, in good form, a weighted average cost of production report for the Curing…
A: Production report can be called as the summary of all the costs that are incurred in the production…
Q: Question 10 If the nominal rate in compound interest is 10% compounded semi-annually, what is the…
A: The question is based on the concept of Financial Management. Whenever compounding is done semi…
Q: Question 18 What is the present value of the annuity that is payable quarterly for 4 years at 10%…
A: Annuity means periodic payments or receipts f the same amount at the same interval. In other words,…
Q: One year ago, your company purchased a machine used in manufacturing for $110.000 You have leamed…
A: Net present value helps in capturing the value associated with the investment opportunity. It is…
Q: A Christchurch manufacturer of cables and electronic components reports the 2020 results shown in…
A: Inventory Turnover Ratio :— It is the ratio between cost of goods sold and average inventory.…
Q: On January 1, 20X1, Cleo Company purchased an 80% interest in Sai Inc. for $1,000,000. The equity…
A: INTRODUCTION: The Distribution of Income and Expense (DI) e-doc is used to transfer money or…
Q: The American Financial Accounting Standards Board issued Standard 5, which provides for recognition…
A: Financial accounting standard board is an independent body, which issues the various basis on which…
Q: explain the similarities and differences between financial and management accounting. discuss any…
A: Financial accounting is the practise of recording earnings, outlays, assets, and liabilities that…
Q: fter arriving at the trial balance above, the company presented the following adjustments. These…
A: The adjusting entries are defined as those entries that are made at the end of the period to make…
Q: Brandon Corporation, the maker of a variety of rubber products, is in the midst of a business…
A: A special order is any client order for items or services that a company does not handle on a…
Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…
A: Under the "Absorption costing" method, Fixed factory overhead is also included in the product cost.…
Q: If Condo wants to maximize its expected profit, what should it's bid be?
A: The main aim of every contractor and any business is to earn profit from the contract which has been…
Q: Karla Tanner opened a Web consulting business called Linkworks and completed the following…
A: Journal Entry In order to document a commercial transaction in the financial records of the company,…
Q: #2. (Fair Value and Equity Method Compared) Blank Co. acquired 25% of the 500,000 shares of…
A: Solution Journal book is also called the original entry book. It is the book in which all business…
Q: In the month of November, a department had 61,411 units in beginning work in process that were 86%…
A: Question 1 Beginning inventory = 61,411 Units started in = 110,602 Ending inventory = 21,127…
Q: A machine costing $212.200 with a four-year life and an estimated $19.000 salvage value is installed…
A: calculation of depreciation under straight line method, unit of production method and double…
Q: Break-even point in unit sales - without hiring - units 2a. Profit it produces and sells 2b. Profit…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Perform step 4 of the five-step process for revenue recognition. Prepare the journal entries for…
A: Journal entry refers to the entry which will be recorded in order to record a particular…
Q: E8.8 (LO 2) Horvath Company uses an imprest petty cash system. The fund was established on March 1…
A: Petty Cash Fund A small cash fund's main objective is to give company units enough money to pay for…
Q: On April 30, the end of the first month of operations, Jop Company prepared the following income…
A: Variable costing income statement is the one which is prepared by deducting the variable costs from…
Q: Foster incorporated, a registered VAI vendor, bought a delivery vehicle on the day they opened the…
A: According to the given question, we are required to prepare the general ledger of Foster…
Q: Question 1: How did you get an ending inventory of 700 units. Question 2: and how did you get 200…
A: calculation of ending inventory and other requirement are as follows
Q: Explain and give examples on how Accounting Information System help EACH professional in their job…
A: Whenever any business is conducted, transactions are made. When transactions are made it is…
Q: Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the…
A: Variable cost are the cost which changes with every unit produced. And, unit cost of goods…
Q: At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales…
A: Bad debt expense is recorded by estimating the uncollectible accounts. Bad debt expense = Annual…
Q: First hint: The Cash column should equal $49,910, A/R $900, Supplies $800, Equipment $5200 (these…
A: Income Statement - Income Statement Includes Income earned and Expense incurred during the period.…
Q: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material.…
A: Contribution margin per unit = Selling price per unit - Variable costs per unit Contribution margin…
Q: Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it…
A: Money that is donated without expecting anything in return, such as goods or services, is referred…
Q: From the following information, prepare journal entries in the Permanent Fund: a. The estate makes a…
A: The concept of permanent funds is used by the government organization which is slightly different…
Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…
A: At the break-even point, the company neither earns any profit nor incurs any loss. At this point,…
Q: data set? 4,5,9,3,10,11 show all work.
A:
Q: Presented below is information related to Splish Company. Date December 31, 2022 December 31, 2023…
A: Inventory - For a manufacturing company, inventory is a crucial current asset. The tangible stock of…
Q: Unimart $ 278,000 500,000 Beginning inventory Merchandise Finished goods Cost of merchandise…
A: The "direct cost" of producing any items or services is the cost of goods sold (COGS). It is…
Q: What accounts should Free credit to record the issuance of the bonds and warrants? a. Bonds Payable…
A: Bonds payable is a liability account that holds the sum that the issuer owes bondholders.Given that…
Q: B) If one birchbark canoe can travel up to 16 km/h, then the equation for distance versus time would…
A: There are multiple questions asked without specifying the question number for which one to be solved…
Q: Cooper Corporation makes bicycles. For many years, Cooper has made the rear wheel assembly for its…
A: According to the given question, we are required to compute the total product cost and give…
Q: The Department of Roads for a large Canadian city has several depots throughout the city where they…
A: FIFO Method :— Under this method, beginning inventory and recent purchases is used first for output…
Q: Business Solutions's second-quarter 2022 fixed budget performance report for its computer furniture…
A: The flexible budget is prepared to compare the actual results with flexible budget. It helps to…
Q: income statement balance sheet financial position cash flow statement
A: It is the follow-up question The question is regarding the financial statements which have to be…
Q: Question 19 The amount of annuity that is payable for 5 years at 12% compounded monthly is…
A: Annuity means where regular payment is made at the end of regular period and full amount with…
Q: Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or…
A: Absorption costing: Absorption costing is a method in which cost of units produced is calculated as…
Q: Modern Garden operates a commercial nursery where it grows plants for garden centers throughout the…
A: TARGET INCOME Target income is Computed by Multiplying Desired Rate of Return with Investment. The…
Q: Wildhorse Co., a ski tuning and repair shop, opened on November 1, 2021. The company carefully kept…
A: preparation of classified balance sheet are as follows
Q: To increase sales, Sunland Inc., a public company following IFRS, implemented a customer loyalty…
A: A loyalty programme seems to be a marketing tactic that encourages people to keep shopping at or…
Q: Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops…
A: Answer:- Child and dependent care credit:- Taxpayer who cover childcare costs out of pocket are…
Q: On August 2, 2020, Wendy purchased a new office building for $3,800,000. On October 1, 2020, she…
A: Calculation of cost recovery deduction for 2020 and 2024 are as follows
Q: Required information [The following information applies to the questions displayed below.] At…
A: Balance sheet showing accounts receivables and allowance for doubtful accounts are as follows
Q: Absorption and Variable Costing Income Statements During the first month of operations ended July…
A: As per the absorption costing method, the product cost includes fixed and variable manufacturing…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossRefer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- 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.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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?
- Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).