The shareholder's equity of Cecille Corp. revealed the following on June 30, 2014: Preference share, P100 par value P230,000 Preference share premium 80,500 Ordinary share, P15 par value 525,000 Ordinary share premium 275,000 Ordinary share subscribed 5,000 Retained earnings 190,000 Notes payable 400,000 Subscription receivable ordinary - 40,000 1 How much is the legal capital?
Q: BULUH NIAGA BHD Sara Liza, the owner of Buluh Niaga Bhd, is planning to request a line of credit…
A: The cash budget is a statement that provides detailed information about the cash flows of a business…
Q: Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000,…
A: Values given in the question Unit selling Price = $46 Unit variable cost = $31 Contribution per…
Q: On March 1st, Frank opens a brokerage account and sell shorts 300 shares of Doggie Treats Inc. at…
A: Stock: Stock is the number of shares being owned by the company. It is being segregated into two…
Q: a. Wages of $11,000 are earned by workers but not paid as of December 31. b. Depreciation on the…
A: Introduction: A record is typically kept in the general ledger, but it can also be kept in a…
Q: elect one: True O False
A: Balance of Payment: its the international transaction of payment which includes receipts and payment…
Q: Fleming, Fleming, and Johnson, a local CPA firm, provided the following data for individual returns…
A: 1) Physical flow schedule Units in Beg. WIP 0 Units Completed and…
Q: mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a…
A: Goodwill is the earnings of the entity which it earned in the form of reputation during the life of…
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: The difference between the par value received on bonds issued and the premium on bonds payable…
Q: Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually.…
A: Bonds are sources of raising long-term funds by the company. The company pays periodic interest…
Q: Moyment Condition An employee taking annual Does it meet the award or National Employment Standard's…
A: National Employment Standard Minimum requirements: This is the system of employment standard minimum…
Q: You have been appointed as the Financial Manager of Red Slippers Trading. Your bookkeeper prepared…
A: General Journal
Q: As during eighth year, Clark Company spent $2,400,000 on equipment for its own use. The project took…
A: Introduction: The Standard Accounting Principles (GAAP) are the standard accounting regulations,…
Q: [The following information applies to the questions displayed below.] Val's Hair Emporium operates a…
A: Adjusting Entries - Adjusting Entries bifurcates the income or expense of the current year with…
Q: Dune Ltd is considering a project that will require the use of a crane that cost £600,000 when it…
A: Introduction:- Net present value is the difference between the present value of cash inflows and…
Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…
A: Income statement is the financial statement prepared for knowing the profitability position of a…
Q: Future value and simple interest are two types of interest. The following amounts due by its…
A: The question is related to Simple Interest and the Future Value Simple Interest = P × r × t P =…
Q: Problem 3 Required The following information related to the business of Snorlax Company, and the…
A: The current ratio defines the ability of the company in terms of payment for short-term debt. The…
Q: Jamestown, Inc. is family-owned C-corporation whose stock is not traded on an exchange. Jamestown,…
A: Introduction: In the context of the presented question, we are expected to determine the number of…
Q: SixthZ currently produces and sells 1,200 treehouses per year and sells them at $1200 per treehouse.…
A: Introduction: Operating income is the money left over after deducting operating expenses and the…
Q: Price per unit: $10 Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute the…
A: Introduction: Break even units: Division of Unit contribution margin with Fixed cost derives the…
Q: Complete the following table using the perpetual FIFO method of inventory flow. Cost of Goods Sold…
A: The FIFO method stands for first in first out, where older inventory is sold first. Under perpetual…
Q: table belom shows the financial statements of a fan components supplier company that started it's…
A: Profit and loss statement shows the amount of profit earned or loss suffered during the period.
Q: Ken company which was dealing with high level computer chips issued a 10 year P1,810,000 FV, 6%…
A: Diluted earnings per share used to assess an entity's profitability after taking in to consideration…
Q: Finance - Debt & Equity Relevant costs and limits that should be considered when managing the firm's…
A: The return required by the funders or the shareholders is equal to the minimum amount that is…
Q: A Cost Reduction Investment in capital will cost your company $1 million. Which of the options below…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The following data for units shipped (*) and Y (shipping cost) has been observed over the last 6…
A: Calculation of Variable cost per unit using High-low method Variable cost per unit = (Highest…
Q: 3DD Corporation engaged your service to audit its account. In your examination of cash, you find…
A: Note: Since you have posted multiple questions with multiple sub-parts, we will solve the first…
Q: Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is…
A: Sales are the basic revenue generating operation of the trading company which involves selling of…
Q: Account Receivable Dr. Sales Revenue Cr. Cost of Good Sold Dr. Inventory Cr.
A: Accounts receivable is the amount that has been earned by the company but the payment for the same…
Q: From the following information, calculate the incomes of employees X and Y under the straight bit…
A: Straight piece rate system is the easiest method of payment by result in which payment is according…
Q: Time Remaining 02:28 55 □ Close All P Blag for Review Pillar Co has developed a new product called…
A: For the bluebell candle product following information I provided: The company spends $20000 on an…
Q: Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it…
A: Under variable costing, the cost of a product only includes the variable manufacturing cost of the…
Q: In September, a light business bought $3600 worth of bulbs. At the beginning of September, the store…
A: The cost of goods sold can be calculated by adding up purchases and deducting the ending inventory…
Q: OURNALIZ
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: On January 2, 2010, to better reflect the variable use of its only machine, Holly, Inc. elected to…
A: In the context of the given question, we are required to find the right option from the available…
Q: 9. En Vogue Boutique sells blouses for $26.21. If the cost per blouse is $11.21, what is the amount…
A:
Q: file-image Time remaining: 00 : 09 : 37 Accounting Question 5 Mediterranean Homes Ltd makes a public…
A: Share Capital: It is refers to the capital raised by a company by the issue of shares. The capital…
Q: On April 1, 2014, Friends Corp., a newly formed company had the following shares issued and…
A: Shareholders equity section of statement of financial position will record preference share capital…
Q: The following items appear on the balance sheet of a company with a one-year operating cycle.…
A: Current liabilities are those liabilities which are likely to pay with the operating cycle of the…
Q: Your client, Keith Buffalo Leasing Company, is preparing a contract to lease a machine to Souvenirs…
A: The annuity factor of 10% for 27 years is determined to be 9.23720, based on the factor table. Thus,…
Q: Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products…
A: Carvings Mementos Sales Units 44000 44000 Sales 44000*17.6 774400 44000*17.6 774400…
Q: Liv wishes to acquire some undeveloped land as an investment. She is unable to pay the whole…
A: The purchase of option is treated as a capital asset
Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…
A: 1) Quick ratio= quick assets/ current liabilities Quick assets= current assets- inventory- prepaid…
Q: Case Accounting Cycle BW Travel and Tours is a travel agency that offers international and local…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: A company reports the following income statement and balance sheet information for current year: Net…
A: Formula: Return on total assets = (Net income + interest expense) / Average total assets where,…
Q: Xavier has plans to construct a house 10 years from now. He is planning to save $500 every month for…
A: Compound Interest= Compound Interest is the basically known as calculating interest on interest. Or…
Q: On January 1, 2007, Taft Co. purchased a patent for 714,000. The patent is being amortized over its…
A: Solution We are provided with the following information Cost of patent = 714,000 Amortization time…
Q: What does the word stewardship mean and an example of what federal government stewardship?
A: Stewardship is a value that encompasses effective resource planning and administration. Stewardship…
Q: On January 1, 2007, Flax Co. purchased a machine for 528,000 and depreciated it by the straight-line…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2 Mahomes Co.…
A: Retained Earnings - This Statement includes profit earned over a period of time. It increases when…
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.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.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.
- Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Calculating 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?
- Selected 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)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. 6.73Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.