Can you help me with this question The owners are desirous of comparing serval financial transactions and possible outcomes toassist in guiding their decision-making process. They assume that the company will be formedon January 1, 2020. In addition, E&B Comic Bookstore Company's charter will authorize1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B-nonvoting rights) and 400,000, $X par value (see infobelow), 5% cumulative preferred stock. They have asked each student from your accountingcourse to prepare the company's journal entries and statement of owner's equity based on thefollowing information.A. Issued 60% shares of class A common stock. Stock has par value of $48 per share and wasissued at $105 per shareB. Issued 60% shares of no-par class B stock $98C. Issued 20% shares of preferred stock at par value $168D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with anappraised value of $4,000,000.00 Motor Truck with an appraised value of $ 10,000,000.00.E. Earned Net income $ 1,450,000.00F. Declared interim dividends for preferred shareholders as well as S.80 per share to commonstockholders.Prepare the journal entries with narrations to record the following:• The issuances of stock.• Close out net income to retained earnings.• Dividend declared.• Close out dividend to retained earnings. Prepare the journal entries with narrations to record the following:• The issuances of stock.• Close out net income to retained earnings.• Dividend declared.• Close out dividend to retained earnings.Prepare the company's Stockholders equity section of the balance sheet at December 31, 2020.The following information must be clearly stated/shown:• information on par or par values for all classes of shares which must be shown separately.• the number of shares authorized and issued where necessary.• the sub total for the total paid in capital.• Retained earnings.• total stockholders' equity

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company's charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A - voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company's journal entries and statement of owner's equity based on the following information. A. Issued 60% shares of class A common stock. Stock has par value of $48 per share and was issued at $105 per share B. Issued 60% shares of no-par class B stock $98 C. Issued 20% shares of preferred stock at par value $168 D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of S4,000,000.00 Motor Truck with an appraised value of $ 10,000,000.00. E. Earned Net income $ 1,450,000.00 F. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company's charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A - voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company's journal entries and statement of owner's equity based on the following information. A. Issued 60% shares of class A common stock. Stock has par value of $48 per share and was issued at $105 per share B. Issued 60% shares of no-par class B stock $98 C. Issued 20% shares of preferred stock at par value $168 D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of S4,000,000.00 Motor Truck with an appraised value of $ 10,000,000.00. E. Earned Net income $ 1,450,000.00 F. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6C

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The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
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The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. Issued 20% of authorised shares of class A common stock. Stock has par value of $30.00 per share and was issued at $40.00 per share. Issued 20% of authorised shares of no-par class B stock at $38.00. Issued 40% of authorised shares of preferred stock at par value $110.00. Exchanged 50% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00. Earned Net income 1,800,000.00.…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. Issued 40% of authorised shares of class A common stock. Stock has par value of $45.00 per share and was issued at $62.00 per share. Issued 40% of authorised shares of no-par class B stock at $60.00. Issued 30% of authorised shares of preferred stock at par value $125.00. Exchanged 40% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00. Earned Net income 2,000,000.00.…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. Issued 30% of authorised shares of class A common stock. Stock has par value of $20.00 per share and was issued at $28.00 per share. Issued 30% of authorised shares of no-par class B stock at $25.00. Issued 50% of authorised shares of preferred stock at par value $110.00. Exchanged 50% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00. Earned Net income 1,500,000.00.…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your first name initial Issued ____shares of class A common stock. Stock has par value of ___ per share and was issued at $____ per share. firstname Initial # of shares issued Par Value Issue Price S, W, G, Z 50% of authorised shares $45.00 $75.00 Issued _____ shares…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. Issued 20% of authorised shares of class A common stock. Stock has par value of $30.00 per share and was issued at $40.00 per share. Issued 20% of authorised shares of no-par class B stock at $38.00. Issued 40% of authorised shares of preferred stock at par value $110.00. Exchanged 50% of authorised shares of class A common stock for Office Furniture and Equipment with an appraised value of $ 4,000,000.00 and Motor Truck with an appraised value of $10,000,000.00. Earned Net income 1,800,000.00.…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your first name initial. (Hint!!!! Example first Manuel will use the initial M and that person should only use the info presented in line with the heading with their first name initial. You are not allowed to use info associated other initials other than that of your own as this will result in the…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $45 par value (see info below), 5% cumulative preferred stock. Aditional Issued 40% shares of class A common stock. Stock has par value of $45.00 per share and was issued at $62 per share Issued 40% shares of no-par class B stock. Issue price $60.00 Issued 30% shares of preferred stock at par value Exchanged 40% of authorized shares of class A common stock for office furniture with an appraised value of $4,000,000 and motor truck with a value of $10,000,000 1. Declared interim dividends for preferred shareholders as well as $.80 per share to…
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…