The shareholders' equity of ADAM Co on January 1, 2020 appears as follows: 12% Preference share, P200 par, 20,000 shares authorized, 1,400,000 7,000 shares issued and outstanding Share premium preference Ordinary shares, P100 par, 180,000 shares authorized, 35,000 shares issued and outstanding Share Premium Ordinary Retained Earnings 175,000 3,500,000 1,750,000 4,500,000 During 2020, the following transactions occurred: Jan. 2 Issued 20,000 ordinary shares for P180 per share Feb. 7: Purchase 6,000 ordinary shares for the treasury at P200 per share Feb. 15 :Shareholders donated 5,000 entity's own ordinary shares to the corporation May 14 : Sold half of the treasury shares acquired last February 7 for P220 per share. June 27 :Sold the donated shares at P220 per share Aug 28 : Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000 Sep 24 : Received subscription to 18,000 ordinary shares at P250 per share Sep 25 : Received cash payment for each subscriber for 40% of the ordinary shares subscription price

The shareholders' equity of ADAM Co on January 1, 2020 appears as follows: 12% Preference share, P200 par, 20,000 shares authorized, 1,400,000 7,000 shares issued and outstanding Share premium preference Ordinary shares, P100 par, 180,000 shares authorized, 35,000 shares issued and outstanding Share Premium Ordinary Retained Earnings 175,000 3,500,000 1,750,000 4,500,000 During 2020, the following transactions occurred: Jan. 2 Issued 20,000 ordinary shares for P180 per share Feb. 7: Purchase 6,000 ordinary shares for the treasury at P200 per share Feb. 15 :Shareholders donated 5,000 entity's own ordinary shares to the corporation May 14 : Sold half of the treasury shares acquired last February 7 for P220 per share. June 27 :Sold the donated shares at P220 per share Aug 28 : Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000 Sep 24 : Received subscription to 18,000 ordinary shares at P250 per share Sep 25 : Received cash payment for each subscriber for 40% of the ordinary shares subscription price

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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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.
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. 6.73
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