The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary Share Capital, 100,000 shares, P 10 par- P1,000,000 Ordinary Share Premium- P500,000 Retained Earnings- P800,000 During October, 2020, the corporation had the following transactions: > Oct. 5- Reacquired 40,000 shares of its own Ordinary Shares for P 520,000. > Oct. 15- Sold 20,000 Treasury Shares at P 15 per share > Oct. 25- Sold another 10,000 Treasury shares for P 70,000. What is the balance of the Retained Earnings after the above transactions?
Q: Bernabe Company reported the following equity accounts in January 1, 2020: Share Capital, P20 par…
A: Formula: Share premium = Beginning share premium - Shares reacquired value
Q: What is the correct answer?
A: The treasury stock are the own shares of the company that are repurchased from the shareholders of…
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…
A: Retained Earnings: When a company's direct and indirect expenses, income taxes, and dividends to…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Total cost of Treasury stock = P360,000+(2000*225) =…
Q: The entry to record the sale on the books of Image should include:
A: A. Total par value of share = P 360000 B. Total number of treasury share = 2000 C. Par value of each…
Q: ined earnings 5,700,000 Share capital transactions for the year 2021: March 10 - Reacquired 80,000…
A: When treasury shares are retired, then treasury shares are credited at their purchase cost and…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Total cost of Treasury stock = P360,000+(2000*225) =…
Q: the shareholders’ equity section of Pampanga Corporation’s statement of financial position as of…
A: The amount of retained earnings is that portion of the company's equity that can be utilized for the…
Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…
A: Total cost of Treasury stock = P360,000+(2000*225) =…
Q: An analysis of stockholders' equity of Hang Corporation as of January 1, 2020, is as follows: Common…
A: Treasury stock=Acquisition-Sale=P 75,000-2,000×P35-500×P20=P 5,000
Q: oy Ashliy Company reported the following amounts in the shareholders' equity section Of its December…
A: Preference shares, also known as preferred stock, were shares of a corporation's stock that pay…
Q: Joy Ashliy Company reported the following amounts in the shareholders' equity section Of its…
A: Treasury stock are the stock held by the company for the purpose of either redemption or for gain in…
Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…
A: You have posted more than one unrelated questions, so as per our policy only first question is…
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A: Stockholder's equity is the amount belongs to the stockholder's of the business. It is the sum of…
Q: LEE Company had the following amounts in the shareholders’ equity on January 1, 2020: Preference…
A: Accumulated Profits are part of net income that is not distributed to the equity shareholders at the…
Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…
A:
Q: The capital structure of Park Do Ha Company on December 31, 2019 follows: 12% Preference share…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Share premium on shares sold = (No. of shares sold x sale price per share) - Cost of shares sold =…
Q: retained earnings?
A: Definition: Retained Earnings: It is the amount that is obtained after distribution of dividend to…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Journal entry - Recording the business transactions in accounting books for the first time. The…
Q: Elston Limited had the following equity accounts on January 1, 2020: Share Capital—Ordinary ($5 par)…
A: Answer - Part 1 - Journal Entries Date Particulars Debit Credit…
Q: Murphy Company reported the following shareholders' equity on January 1, 2020: Preference share…
A: Purchase of ordinary shares of treasury = No. of shares purchased x Purchase price per share = 5000…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares,…
A: Formula: Total dividends = Preferred dividends + Ordinary dividends
Q: The shareholders' equity of Naruto Corporation as of March 1, 2020 is presented below: Ordinary…
A: Dividend is the amount paid by a company to its shareholders when they earn a good amount of profit…
Q: Joy Ashliy Company reported the following amounts in the shareholders' equity section Of its…
A: Retained earnings is an account which represents the accumulated earnings of a firm till the balance…
Q: Ihe shareholders' equity of the ABA Company on January 1, 2020 is presented below: Share capital,…
A: Shareholder’s equity is the difference between total assets and total liabilities. It refers to the…
Q: The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following:…
A:
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: the par value of shares 25000000/25000 100 share premium…
Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…
A: Share premium on shares sold = (No. of shares sold x sale price per share) - Cost of shares sold =…
Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…
A:
Q: On January 1, 2020, ABC Company reported the following shareholders’ equity Share capital, 250,000…
A: The dividend is paid to the shareholders from the retained earnings of the business. The retained…
Q: The following shareholders’ equity accounts are included in the statement of financial position of…
A: The shareholders' equity section of the balance sheet records the capital that belongs to the…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Total cost of Treasury stock = P360,000+(2000*225) =…
Q: On January 01, 2021, Acoba Corporation provided you the following information: Ordinary share…
A: Treasury shares means the share which has been buy back by the company . It will be shown as…
Q: The Shareholders’ Equity section of Green Corporation at December 31, 2019 showed the following: 8%…
A: Ratios are the mathematical relationships between two figures expressed in comparison of one…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Total cost of Treasury stock = P360,000+(2000*225) =…
Q: n January 01, 2021, Pagaduan Corporation provided you the following information: Ordinary share…
A: Solution: Treasury shares are those shares which are purchased by a corporation of its own shares.…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Treasury Stock: These are the shares that are purchased back by the company from the open market.…
Q: Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par,…
A: Share premium: Shares issued more than PAR value called Share premium. Share premium = Issued Price…
Q: he stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par…
A: The retained earnings of the business includes the net income or loss earned, dividend declared,…
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A:
Q: The equity accounts of Mandevilla Bhd. on January 1, 2021, were as follows. RM Share Capital…
A: Closing entry for net income is the journal entry passed at the end of the reporting period to…
Q: Atlanta Co. has 100,000 common shares outstanding as of January 1, 2020 and after-tax net income of…
A: Diluted Earning per share (DEPS) means computation of the company's earning per share in a situation…
Q: Murphy Company reported the following shareholders' equity on January 1, 2020: Preference share…
A: Purchase of ordinary shares of treasury = No. of shares purchased x Purchase price per share = 5000…
Q: The Shareholders’ Equity section of Green Corporation at December 31, 2019 showed the following: 8%…
A: Annual Preferred Dividend = Preference Share Capital x Rate of Dividend = P2,000,000 x 0.08 =…
Q: The following shareholders’ equity accounts are included in the statement of financial position of…
A: Stockholder's Equity :-Stockholder's Equity includes the amount contributed by shareholders issued…
Q: On January 1, 2020, Arnold Inc. has the following account balances: · Share capital, P10…
A: Treasury shares are those shares which are repurchased or reacquired by the business from its…
Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…
A:
Q: Monitor Company has 120,000 ordinary shares issued and outstanding at January 1, 2020. On January 2…
A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…
Step by step
Solved in 3 steps
- Kent 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. 3,370,000Contributed 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.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
- 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.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.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.
- 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.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?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?
- 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?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.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 37 5. The bonds are classified as a held-to-maturity 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 issue d 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 (I). 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 h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [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 in come statement for the year ended December 31, 201 6, 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, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.