Titanic Corporation's net income for the year ended December 31, 2019, is $380,000. On June 30, 2019, a $0.75 per-share cash dividend was declared for all common stockholders. Common stock in the amount of 38,000 shares was outstanding at the time. The market price of Titanic's stock at year end (12/31/19) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2018. Required: Calculate the ending balance (12/31/19) of retained earnings.
Q: Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value…
A: A financial statement is one that is prepared by the company in a structured format that contains…
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: The dividend on preference shares is paid before any dividend is paid to common stockholders, and…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: The journal entries to record the issue of bonus shares and EPS for 2020 and 2021 are presented…
Q: On January 1, 2020, FAB Co. had 100,000 ordinary shares outstanding. During 2020, the following…
A: On 01.01.2020, FAB Co. had outstanding shares = 100000 During 2020, On March 1, Company had split 2…
Q: During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and…
A: In case of non-cumulative preferred stock, if any dividend remains unpaid in any given year, it is…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Journal Entries for 2018: Date Account title and explanation Debit Credit Nov. 1, 2018 Dividend…
Q: In 2018, Broyles, Inc. reacquired 3,000 shares of its common stock at $55 per share. In 2019,…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 2-for-1 basis. In its…
A: No. of shares outstanding after split off = No. of shares outstanding before split off x split off…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A:
Q: Blue Spruce Limited reported profit of $436,010 for its November 30, 2021, year end. Cash dividends…
A: Profit available to common share holders= Net profit- Preference dividend = 436010-69500 = 366510
Q: Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share…
A: Preferred Common Total 2018 arrears $560,000 ($4 X 140,000 shares) - $560,000 2019…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: A stock dividend is the payment of dividend which is done in the form of shares rather than cash.…
Q: Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference…
A: Contributed capital: It is the total value of shares issued during a period. The shares issued…
Q: Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: On January 1, 2020 ,Herron Corporation purchased 5,000 shares of treasury stock. Other information…
A: Return on Common Stockholders' Equity will be calculated using following Formulae : Return on Common…
Q: enden Company was organized on January 1, 2020 at which date it issued 300,000 ordinary shares of P6…
A: Treasury Stock refers to the purchasing back of shares of the company that are already issued.
Q: Wendell Company provided the following pertaining to its accounting year that ended December 31,…
A: Additional paid-in capital on Common stock sold = Sale value of Common stock - Par value of Common…
Q: During 2021, its first year of operations, McCollum Tool Works entered into the following…
A: Weighted average no. of outstanding common shares = 35,000,000 + 4,000,000*9/12…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: At December 31, 2020, the balance sheet of J.R. International included the following shareholders'…
A: Date Account Titles and Explanation Debit Credit Jan'15 Treasury Stock (12,000 shares X $ 17 per…
Q: At December 31, 2019, Talbot Corporation had 90,000 shares of common stock and 20,000 shares of…
A: Diluted Earnings per Share = Adjusted Net income /Weighted Average Shares
Q: The Dark Red Company, which started operations in 2018, paid dividends at the end of 2018,2019 and…
A: The participating preference shareholder is entitled for fixed preference dividend and also the…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: Calculation of bonus shares issued: Existing no of shares = 36 million Bonus shares proportionate =…
Q: On January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A journal entry is a record of a firm's business activity that is retained in the company's…
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Particulars Amount ($) Preferred Stock, $100 par value, 10000 authorized, 5000 issued and…
Q: Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par…
A: Total shareholder includes ordinary share capital, the premium on share capital, and retained…
Q: The JHONG Corporation had the following balances in its Shareholders’ Equity accounts as of December…
A: The treasury stock has debit balance in normal. It is recorded in balance sheet as deduction from…
Q: On January 1, 2020, Keith Company paid $96,000 for 8,000 shares of Jerry Company common stock. The…
A: Number of shares owned by Keith = 8,000 Price of shares = $96,000 Price per share = $96,000 / 8,000…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Journal entries are used to hold track of financial transactions. You enter transaction data into…
Q: On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders'…
A: A statement of shareholders' equity details the changes within the equity section of the balance…
Q: On January 1, 2019, Concord Corporation had $1,470,000 of common stock outstanding that was issued…
A: Dividend means an amount paid by a corporation/company to its stockholders, out of profit. Dividend…
Q: At the beginning of 2019, TJH Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Solution: Retained earnings balance at Dec 31, 2019 = Beginning retained earnings + Net income -…
Q: he Gangnam Company began operations in January 2019 and reported the following results for each of…
A: calculation of book value of ordinary share are as follows
Q: The Lily Company, a calendar year entity, reported net income of $300,000 for 2019. At the start of…
A: Basic EPS = Net IncomeWeighted average shares outstanding Diluted EPS = Net Income- Preference…
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: The preferred stockholders should give a preference at the time of payment of dividend and the…
Q: On January 1, 2020, Alpha Aviation issues 105,000 shares of stock. Shortly thereafter, Delta Tech…
A: Dividend refers to the profit distribution to its shareholders and when the business earns the…
Q: January 1—Issued 200 shares to an investor for $8 per share. January 2—Issued a ten-year, 4%, $1,000…
A:
Q: Notebook Company had the following transactions in 2019, its first year of operations. · Issued…
A:
Q: Pluto Company began operations on January 1, of 500,000 preference shares of P5 par value of which…
A: Contributed Capital is the amount a company receives on the account of issue of common and preferred…
Q: On January 1, 2021, the start of the current financial year, Tubble Ltd had in issue 36 million…
A: 1. Determination of Journal entries to record issue of bonus shares Date Account title and…
Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Number of shares ( July 12 , 2022 ) ( in '000 ) = 117000 * 6% = 7020
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…
Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…
A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…
Q: Larkspur Company reported the following amounts in the stockholders' equity section of its December…
A: Declared Dividend on common stock = rate of dividend * number of outstanding common stock Declared…
Q: On January 1, 2021, Eugene Co. had retained earnings of P1,240,000. During 2021, the co. earned net…
A: Retained earnings balances are adjusted for many reasons. This is the summary of retained earnings.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.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?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.
- 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. 6.73Cash 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?Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.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%.
- 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. 3,370,000Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.