United Apparel has the following balances in its stockholders’ equity accounts on December 31, 2021: Treasury Stock, $850,000; Common Stock, $600,000; Preferred Stock, $3,600,000; Retained Earnings, $2,200,000; and Additional Paid-in Capital, $8,800,000. Required: Prepare the stockholders’ equity section of the balance sheet for United Apparel as of December 31, 2021.
Q: Stowe Company’s December 31, 2020, trial balance includes the following accounts: Investment in…
A: STOWE COMPANY Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Common stock…
Q: Minnesota Manufacturing's balance sheet showed total common equity of $3,000,000 and 500,000 shares…
A: Book value per share can be calculated by dividing total shareholders equity at the end of the year…
Q: On January 1, 2021, a company had 444,000 shares of common stock outstanding. During the year, it…
A: Weighted average no of shares = Opening outstanding shares + shares issued * period used /12 -…
Q: At the beginning of 2019, Taylor Corporation had the following stockholders’ equity balances in its…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: United Apparel has the following balances in its stockholders' equity accounts on December 31, 2021:…
A: The balance sheet of the company means a financial statement that records all the assets and…
Q: The post-closing trial balance of Carla Vista Corporation at December 31, 2020, contains the…
A: Stockholder equity: Retained earnings plus share capital make up the account on a company's balance…
Q: Court Casuals has the following beginning balances in its stockholders' equity accounts on January…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: During 2018, Longhorn Corp. had net income of $300,000 and paid dividends to its preferred…
A: The question is based on the concept of Shares and debentures.
Q: At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock-holders'…
A: Prepare journal entry for the given transactions (from January 3 to May 9).
Q: Comprehensive Dakota Corporation had the following shareholders' equity account balances at…
A: Definition: Retained earnings: Retained earnings are that portion of profits which are earned by a…
Q: On January 1, 2020, Company D issued 6,000 shares of its $2 par Common Stock when the market price…
A: Common stock: Common stock is an equity ownership in organization. Common stockholders have a…
Q: The stockholders' equity section of Heatherly Corporation's balance sheet as of December 31, 2021 is…
A: Shareholder's Equity Shareholders equity which is consist of both common stock and preference stock…
Q: The following account balances relate to the stockholders' equity accounts of Sunland Corp. at…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A:
Q: The equity section of Gannon Oilfield Corporations balance sheet at December 31,2019 is shown below:…
A: Average price received for each issued preferred share = Issued and Outstanding preferred capital /…
Q: Comparative statements of shareholders’ equity for Anaconda International Corporation were reported…
A:
Q: On January 1, 2021, Thomson Inc. had the following account balances in its shareholders' equity…
A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…
Q: On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and…
A: As on 31.12.2021 Common Stock 1290000 share of $6 per Share $ 77,40,000 1290000…
Q: On January 1, 2019, Powder Company provided the following shareholders' equity section of its…
A: 1. Dividend paid to preferred stock = 7 per share 2. No. Of preferred stock = 92,800/100= 928 +340=…
Q: At the beginning of 2021, Thompson Service, Inc., showed the following amounts in the stockholders'…
A: A Balance Sheet is an important part of Accounting as it reflects a company's side whether it is in…
Q: on December 31, 2021. Avon, Inc has the following account balances pertaining to its stockholder’s…
A: Calculation of stockholders equity on Dec 31, 2021 are as follows
Q: Lockhart Industries reported total stockholders' equity of $415,000 on its balance sheet dated…
A: Formula = Total stockholders equity ending = Total stockholders equity beginning + additional…
Q: The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Pina…
A: Meaning of Stockholder's Equity Stockholders' equity, also referred to as shareholders' or owners'…
Q: (a) The number of shares of common stock issued was shares (b) The number of shares of…
A: Common Stock is Amount of Stock purchased by the owner of the Company when the common stock is…
Q: Comparative statements of shareholders’ equity for Anaconda International Corporation were reported…
A: When the company is compare their profit of several years then through the balance sheet then fot…
Q: Phelps, Incorporated had assets of $67,646, llabilities of $15,466, and 10,718 shares of outstanding…
A: Ratio Analysis :— Ratio analysis is the process of Determination and interpreting numerical…
Q: Martinez Company's December 31, 2020, trial balance includes the following accounts: Investment in…
A: Balance sheet: To know the financial position of the business on the particular date balance sheet…
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: Common stock, $10 par, 290,000 shares issued and outstanding $ 2,900,000 Paid-in capital in…
A: Solution:- Preparation of journal entries for each of the following cases as follows:-
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: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding,…
A: Earnings per share = Net IncomeWeighted Average number of shares
Q: On January 1, 2021, Oriole Corp. had 478,000 shares of common stock outstanding. During 2021, it had…
A: Weighted average number of shares = sum of (Time adjustment * No. Of shares)
Q: Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on…
A: Earnings per share is used to measure income earned per share. Earnings per share is equal to…
Q: The stockholders' equity section of the December 31, 2019, balance sheet is provided below: Common…
A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…
Q: On January 1, 2021, the stockholders’ equity section of Jayhawk Corporation’s balance sheet showed…
A: The purchase of treasury stock decreases the number of shares outstanding. The number of shares…
Q: Presented below was the stockholders' equity section of Wiley Corporation's balance sheet at…
A: When stock is issued at price higher than the par value, they are said to be issued at premium. The…
Q: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding,…
A: Answer) Calculation of Earnings per Common Share Earnings per common share = Earnings available for…
Q: On its Balance Sheet dated December 31st, 2020, the Crazy Cookie Company reports the following…
A: A treasury stock is a reacquired stock, it is the stock bought back by the issuing company. It…
Q: The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Bonita…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: Wheaton Tire Inc., [WTI] reported the following excerpts from shareholders’ equity on January 1,…
A: Dividend is the amount to be paid by the company out of profit made to the shareholder's of the…
Q: The account of Retained Earnings has a credit balance of $224,000 on 1 Apr 2021 The following is…
A: On issue of equity and preferred stock, any payment in excess of par value then it is credited to…
Q: Ricci Corporation is preparing their financial statements for the year ending September 30, 2021.…
A: Correct option is b. No, do not include the preferred dividends in the calculation of EPS
Q: Coronado Company reported the following amounts in the stockholders’ equity section of its December…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: On January 1, 2021, a company had 499,000 shares of common stock outstanding. During the year, it…
A: Weighted average number of shares outstanding is the average number of shares that are outstanding…
Q: ABC Corporation has the following information extracted from the financial statements: - Preferred…
A: Cumulative preferred stock: The cumulative Preferred stock is a type of preferred stock with a term…
Q: The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts…
A: The question is based on the concept of Financial Accounting.
Q: On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts.…
A: Common Stock: [Common stock – treasury stock] x 2 in 1 stock split [253000 – 5300] x 2/1 495,400 x…
Q: United Apparel has the following balances in its stockholders' equity accounts on December 31, 2024:…
A: Total Paid in Capital = Common Stock + Preferred Stock + Additional Paid in Capital Total…
Q: Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 180,000 shares…
A: total paid-in capital at the end of 2021 = Number of shares issued * Price per share
United Apparel has the following balances in its
Required:
Prepare the stockholders’ equity section of the balance sheet for United Apparel as of December 31, 2021.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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%.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.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.
- 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.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.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. 6.73Tama 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.
- 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.Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.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.
