The following is the stockholders equity section of Zion and Co. at December 31, 2018: 31-Dec-18 31-Dec-19 Common stock, $5 par value, 1,000,000 shares issued & outstanding 5,000,000 Additional paid-in-capital Common stock 3,000,000 Retained Earnings 17,500,000 $25,500,000 The following transactions occurred in 2019: 1-Feb Declared a cash dividend of $.70 per share to common shareholders of record on February 15th payable on March 1st 1-Mar Paid the dividend declared on February 1st 1-Apr Announced a 4 for 1 common stock split, the market price was $26 per share 1-Jul Declared a 15% common stock dividend, distributable July 31st, the market price was $22 per share 31-Jul Issued the shares for the stock dividend 1-Dec Declared a common stock cash dividend of .25 per share of record on December 15th 31-Dec Net income for the year was $4,450,000 A. Journalize the transactions. (I recommend you use T accounts to keep track, but you don't have to). B. Prepare the December 31, 2019 stockholders equity section above
Q: Budgeted income statement Last year's income statement for Cooper Company is as follows: Sales Cost…
A: Variable costs are costs that varies with the number of units sold. Fixed costs are costs that…
Q: If the ShoeFits, Inc is a Shoe Manufacturing Company located in Laguna. In deciding their 4th…
A: Introduction: Actually total manufacturing cost includes direct material cost, direct labor cost,…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: Raw material are the direct material which are used in the making of the goods. It is a direct cost…
Q: On May 12, Joy Company accepted a $1,000, 60-day, 6% note from Abe, granting a time extension on a…
A: Ordinary interest is computed using a 360-day year or a 30-day month; exact interest is computed…
Q: A county government demands vacant land from the city to construct an airport exercising the right…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided…
A: Variable cost is the cost which keeps on changing with the level of activity or production. Whereas…
Q: In 2022, Elaine paid $2,280 of tuition and $740 for books for her dependent son to attend State…
A: Tax is the amount that the people pays according to their income to the concerned government entity.…
Q: Machado Inc. purchased a new robotic drill for its assembly line operation. The total cost of the…
A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…
Q: anton Company makes one product and it provi ving information to help prepare the master bud e…
A: Raw material refers to the major sources of developing of a product since raw materials are…
Q: Sheridan Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…
A: Solution a: Financial advantage (Disadvantage) of buying = Relevant cost to make - Relevant cost to…
Q: Galaxy Products is comparing two different capital structures, an all-equity plan (Plan I) and a…
A: Earning per share is amount of earning available for each shareholders that is parameter for the…
Q: Dinkins Company purchased a truck that cost $66,000. The company expected to drive the truck 100,000…
A: Given, Cost = $66,000 Salvage value = $10,000 Estimated miles = 100,000 Depreciatione expense per…
Q: Johnson Company estimates that its production workers will work 88,400 direct labor hours to produce…
A: Given, Estimated overhead = $1,091,230 Estimated production = 9,170 units Predetermined overhead…
Q: Obj. 4 EX 2-16 Trial balance The accounts in the ledger of Seaside Furniture Company as of August…
A: A general ledger's accounts are listed in an unadjusted trial balance, before any adjustment entries…
Q: What are the internal factors that impact the sales budget?
A:
Q: View Policies Current Attempt in Progress Vaughn Company estimates that 402,600 direct labor hours…
A: Variable Cost :— It is the cost that changes with change in units. It is constant in per unit for…
Q: At the end of its yearthe adjusted trial of Rafael Company is as follows No. 101 112 157 167 201 208…
A: Closing entries are posted in the books at the end of the period in order to close the temporary…
Q: Review Crane's cheque summary and determine the amount of any cheques that have not yet cleared the…
A: Lets understand the basics. Outstanding checks are the checks which are not cleared in the bank by…
Q: What is the salary allowances of 47000, and 59000 respec and the balance divided equally
A: Lets understand the basics. Partnership is an agreement betwen two or more person who works togather…
Q: Antuan Company set the following standard costs per unit for its product. $ 15.00 Direct materials…
A: Direct labor variance arises when the standard cost or budgeted cost of labor is different from the…
Q: 1. Prepare corrected income statements for the three years. 2. State, whether each year’s net income…
A: Opening Inventory - Overstatement of opening inventory reduces the net income of the current year…
Q: On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company…
A: Solution : Cost of investment = $450,000 Net income of Dennehy = $90,000 Cash dividend paid by…
Q: OPERATING ACTIVITIES Net income (loss) from continuing operations Depreciation and amortization…
A: Statement of cash flow is a statement showing the movement of cash within entity. Operating…
Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section. Preferred…
A: Dividends are defined as the part of the profit that is not distributed by the company but is…
Q: What is needed to pay a cash dividend? (hint – two things are required)
A: A cash dividend is a payment which is made by company to its shareholders out of its accumulated…
Q: 20 11 Received $1,200 cash advance from Bob Carow for an implant. Received $2,100 cash for dental…
A:
Q: Explain the 3 common financial measures revealed by the statement of cash flow. ii. Calulate and…
A: Calculating a cash flow statement has several advantages, including: 1. It can provide information…
Q: Cupcake and Sugar share profits and losses 1/3 and 6/9 respectively. Cupcake receives a monthly…
A: Drawings means the withdrawal made by the partner or business owner from the funds of the business…
Q: Madrid Corporation has compiled the following information from the accounting system for the one…
A: Absorption and Variable Costing: Absorption costing is the process of allocating fixed overhead…
Q: At Hébert Company, the following errors were discovered after the transactions had been journalized…
A: Under-stated means the amount was recorded less than it should actually be. Overstated means the…
Q: You have the option of buying a property or just leasing it, in the first case you must pay 20% of…
A: Introduction In a discounted cash flow analysis, the interest rate used to compute the present value…
Q: Ms. Sarah Wong is provided with a car by her employer. It is leased by the employer for $728 per…
A:
Q: SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…
Q: Balance off all accounts in the ledgers and extract a trial balance.
A:
Q: 1. Professional skepticism requires that the auditor assume that management is a) reasonably honest…
A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…
Q: Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for…
A: The resources and materials utilized in the creation of a product that may be directly connected to…
Q: Required information [The following information applies to the questions displayed below.] Target…
A: The capacity of a corporation to pay short-term debt that is due within a year is measured by the…
Q: 6. When you undertook the preparation of the financial statements for Suzanne Company at January 31,…
A: Ending inventory is the valuation of the goods still in stock and retained by a firm at the end of…
Q: Define cash dividend. What is needed to pay a cash dividend? (hint – two things are required)
A: A cash dividend is a payment that is provided to investors by a firm in the form of periodic…
Q: The following events take place: 1. Hector Madras died and left 100 acres of undeveloped land to the…
A: Fund Accounting: A type of accounting called fund accounting is largely utilised by charity and…
Q: J2. The future value of $100 today earning 8 percent for three years is: A.126 b. 76 c. 119 d. 108.…
A: FUTURE VALUE Future value is the value of an asset at a specific date. Future value is the…
Q: How to write a letter to company to complete dues
A: There are dues on which either the company has created from such the asset or the liability as it…
Q: January 1, Year 1, Marino Moving Company paid $64,000 cash to purchase a truck. The truck was…
A: Solution: Under straight line method of depreciation, depreciation is equal in each month.…
Q: A company manufactures a single product for which the following data based on a budgeted capacity of…
A: Sales in Unit can be calculated as Sales in Unit = Opening Stock + Production during the period -…
Q: Chapter a. Define financial assets. b. A different approach is used in determining the balance sheet…
A: a. A financial asset is a non physical asset which derives its value from contractual right or…
Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: Net income is the amount of money earned by an entity. It is determined by deducting the expenses…
Q: Define basic and diluted Earnings per share?
A: Basic Earnings per share is defined as the earning per share obtained from dividing the company’s…
Q: How do you define metrics under the evaluation in accounting?
A: There are a few different types of metrics that can be used in accounting: 1. Financial metrics:…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022.…
A: Answer:- Taxable income meaning:- Taxable income is computed by subtracting exemptions and rebates…
Q: n December 15, 2006, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000.…
A: Gross profit is profit earned above the cost and before interest and tax and one of basic parameter…
please help me
Step by step
Solved in 2 steps
- Lyon 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.Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?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.
- Anoka 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?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. 6.73Selected 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)
- 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.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.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?
- 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.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.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.