The following transactions took place during January 2022 Jan 4 Purchased 24,000 shares of its own Cubix' stock for P168,000. Jan 10 Sold 4,000 treasury shares for P9 per share. Jan. 29 Sold 14,000 treasury shares for P6 per share. Jan 31 Sold the remaining 6,000 treasury shares for P7 per share. Required: Prepare the journal entries
Q: The change in the credit policy would result to increase (decrease) in incremental profit of (Use 36...
A: The increase in incremental profit is when the total benefit derived from credit policy is higher th...
Q: Widgets & Gadgets in a merchandiser that sells gadgets and widgets. They had the following transacti...
A: Journal entry records the financial transaction which is one of the key step of accounting. Under F...
Q: Company Inc. enters into a 10-year finance lease at the beginning of 2021 for a total of $250,000. T...
A: Interest expense for the year = Present value of lease payment x rate of interest x no. of months in...
Q: Sagar Manufacturing Ltd. manufactures 2 products A, B. Also there are 2 activities (Quality Checks a...
A: The activity rate is calculated as total cost of activity divided by activity usage base. The cost i...
Q: ulldogs Inc., a corporation that issues ordinary shares with par value, completed a 2-for-1 stock sp...
A: The coupon interest rate is the cash flow that comes from bonds. The coupon is fixed rate interest a...
Q: Your audit of Banayoyo Corporation counts Receivable account consists of the following: year ended D...
A: The answer is stated below:
Q: The following transactions were completed by the company.
A: It is the equation that states that the total assets of an entity is equal to the sum of total liabi...
Q: Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner,...
A: Solution Partnership is an arrangement between two or more people to oversee business operations and...
Q: Question 1 of 4 173 (a) Your answer is correct. Complete the aging schedule. Number of Days Outstan...
A: Solution.. (a). Aging schedule Number of days outstanding accounts receivable Estimated ...
Q: The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $13,165. The bank statem...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: The BZ-91825 company charges a price of $242 per unit of its product. The company's variable cost pe...
A: New selling price = $242 - $29 = $213 New fixed cost = $878,000 + $63,000 = $941,000 New sales units...
Q: According to a summary of the payroll of Guthrie Co., $587,000 was subject to the 6.0% social securi...
A: Social Security Tax = Gross earnings x social security tax rate Medicare Tax = Gross earnings x Medi...
Q: Upperchurch Company reports the following components of stockholders' equity on January 1. Common st...
A: UPPERCHURCH CORPORATION Stockholders' Equity Section of the Balance Sheet December'31 Common S...
Q: Widgets & Gadgets in a merchandiser that sells gadgets and widgets. They had the following transacti...
A: Journal Entries in books of Widgets and Gadgets for June 2020
Q: Required information P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash...
A: Adjustment statement Date Particular Amount($) Jan-08 Accounts Payable 14850 Jan-07 Paid Jan 0...
Q: On January 4, 2022, Party Corporation purchase 80% of Summer Company's ordinary share for P810,000 w...
A: Consolidated shareholder's equity refers to the equity of the parent and the part of the equity of t...
Q: Alpha Beta Inc. was organized on Jan. 1, 2021. It is authorized to issue 20,000 preference shares wi...
A: GIVEN Jan 10 issued 10,000 ordinary shares for cash at P35 per share Mar 1 Issued 10,000 prefere...
Q: Question Content Area Liability Transactions The following items were selected from among the ...
A: The question is based on the concept of Financial Accounting.
Q: Bulldogs Inc. is given terms of 2/10, net 45 by its suppliers. If Bulldogs Inc. forgoes the cash dis...
A: Cash discount if paid within 10 days= 2%
Q: You are getting a mortgage. Your home is worth $237,324, and you will make a $63,651 down payment. Y...
A: Cost of home= $ 237324 Down payment done= $ 63651 Loan= $ 237324- $ 63651 =$ 173673
Q: Pledged Assets : BCV ERV 60,000 41,600 32,000 133,600 Plant, property, and equipment (PPE) Merchandi...
A: Assets not pledged ERV Free Assets 32000 Asset...
Q: On January 02, 2021, Parent Corporation purchased 80% of SUBSIDIARY Company’s ordinary shares for P6...
A: Acquisition Date = 02.01.2021 Parent Company acquired 80% of the Subsidiary company's ordinary share...
Q: A company just starting business made the following four inventory purchases in June: Number of unit...
A: Average cost per unit = Total cost Total number of units purchased ...
Q: Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of ...
A: Gross profit earned=Sales-Adjusted Cost of Goods Sold
Q: Which of the statements below is false? If the net income of prior period is overstated because of t...
A: 1. True. The effect would be deducted from the beginning retained earnings. 2. True. Prior period ad...
Q: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. ...
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and ...
Q: Which of the following is correct when the company is deciding if it will undertake an additional fu...
A: Additional Fund Needed (AFN) The purpose of calculating the Additional Fund needed (AFN) which can b...
Q: Prepare a flexible budget performance report that shows the company's revenue and spending varlances...
A:
Q: all earnings for futu growth. Comparative Balar bous:
A: Return on shareholder equity explains the relationship between the net income and the average shareh...
Q: Barnes Company uses a job order cost system. The following data summarize the operations related to ...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: A transaction has been recorded in the general journal of Manella Company as follows: Account Title ...
A: A transaction is an organization interact that has a monetary effect on a company's financial statem...
Q: The Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The following sales...
A: GIVEN The Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The follo...
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. ...
A: The Activity based costing (ABC costing) is the newer way of costing. Here the activity that cost th...
Q: Wayne, Wendell and Wesley are partners who share profits and losses equally. Their financial positio...
A: Statement of liquidation includes the amount of assets realized and liabilities paid.
Q: Production Budget and Direct Materials Purchases Budgets Peanut Land Inc. produces all-natural or...
A:
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. ...
A: Product design cost is allocated equally among 2 products as expected activity driver is 2. Product ...
Q: he Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The following sales ...
A: Budget will help to find any mistakes in planning, hence a business can take corrective measures and...
Q: 1. $ land for the next year" should be capitalized in the Land How much of the "property taxes on th...
A: Solution:- 1)Calculation of the "property taxes on the land for the next year" should be capitalized...
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. ...
A: The Activity based costing is the modern technique to assign cost to various activities. The cost of...
Q: Butcher Butcher is considering whether to invest in a new product, the Zam. Details of the Zam are a...
A: Capital budgeting is basically discovering, assessing, and choosing investments to determine a compa...
Q: At the end of 2020, Crown Point Corp. has accounts receivable of $479,200 and an allowance for doubt...
A: Date Account Titles and Explanation Debit Credit Mar'4 Accounts Receivable $ 11,600 All...
Q: On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and accum...
A: Impairment Loss on Held for sale Non current Assets According to PFRS 5 there are some rules and reg...
Q: The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as ...
A: A Trial Balance is a statement that shows either the balance or total amounts of debit and credit it...
Q: please answer numbers 4 and 5 only
A: 4)
Q: expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per unit of PHP55,...
A: Sales price variance is the difference between the budgeted or standard sales price per unit and act...
Q: RA-31280 company manufactures a specialized equipment. At the lowest activity level of 6,600 units, ...
A: Given that, At 6,600 units, the company's total quality control cost is $281,600. Since lease is fix...
Q: Bhoopesh Ltd. gives you these transactions of their Business. Find out their effect on its Assets, L...
A: Accounting Equation: Total assets = Total liabilities + Equity
Q: Assume that you will be unable to inspect the securities owned by the client on the balance sheet da...
A: The audit and inspection are good tool that are used by auditor. An inspection is different than aud...
Q: Sold services for $424.00 to J. Lepowsky, who agreed to pay for them within ten days. Sales Invoice ...
A: The transactions are firstly recorded in the books of Original entries known as Journal. Both debit ...
Q: Pinky Company has 80% holdings over Silk Company. During 2018, Pinky Company sold merchandise to Sil...
A: Upstream and downstream: Upstream and downstream transactions are generally treated as intercompany ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
- 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?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. 6.73Contributed 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.
- 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?Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?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).
- 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.Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 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.