uring 2021, Bramble Corp. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Bramble, converted into common shares of Bramble $ 539000 Payment in 2021 of cash dividend declared in 2020 to preferred shareholders 279000 Payment for the early retirement of long-term bonds payable (carrying amount $3928000) 3973000 Proceeds from the sale of treasury stock (on books at cost of $390000)
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: J Corporation issued 400,000 ordinary shares when it began operations in 2019 and issued an…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Issue of bonus shares will not result in any cash flows into the organization, but the shareholder's…
Q: On the sale of treasury stock dated September 1, 2021, how much is the gain realized? On January 1,…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: MM Co. had 100,000 shares of ordinary share issued and outstanding at January 1, 2021. During 2021,…
A: Shares are split by 2-for-1. Each share is converted into 2. Total shares outstanding before stock…
Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…
A: The following computations are done for Hanz Corporation.
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Preference shareholders receive dividends first on preference and then the remaining dividend will…
Q: Crane Company had 295000 shares of common stock issued and outstanding at December 31, 2020. During…
A: Earnings per common share means net income or earning attributable for each common shareholder.
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: EPS means earnings available for each equity shareholder. Diluted EPS means when earnings of the…
Q: At the beginning of 2019, Cookie Corporation had retained earnings of P 3,000,000. Throughout the…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: During 2021, R Co. had the following two classes of stock issued and outstanding for the entire…
A:
Q: In 2021, Milka Company purchased an investment in equity securities. The related data of December…
A: Unrealized gain refers to the profit earned by an entity by an increase in the value of any asset or…
Q: During the year ended December 31, 2019, and in the following montha of January and February 2020,…
A: The FV- fair Value of Securities is considered as the current value at which the security is trading…
Q: On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: pr. 1 Purchased 7% MRT bonds at face value, for $56,000. Paver received interest from these bonds…
A: PAVER FINANCIAL CORPORATION Statement of Income (Partial) For the year ended Dec 31, 2021…
Q: Superior Company owns 40% of the outstanding stock of Bernard Company. During 2021, Bernard paid a…
A: Equity method: Equity method is the accounting method used for accounting equity investments which…
Q: On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of…
A: Balance Sheet (Extracts) Stockholder' Equity: Amount Common Stock $ 150,000 Retained…
Q: Integrity Company is a publicly held company whose shares are traded in the over-the-counter market.…
A:
Q: Ivanhoe, Inc. acquired 30% of Tamarisk Corporation's voting stock on January 1, 2021 for $ 1020000.…
A: Share in income earned in 2021 = Income earned x 30% = $406000*30% = $121,800
Q: Unit IV question 9
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
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: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: 1. Total No. of shares issued = 40,000 shares Value of Shares = 40,000 Shares x P100 = P4000,000…
Q: At the beginning of 2021, Sunland Company had retained earnings of $402000. During the year Sunland…
A: Retained earnings, ending balance = Retained earnings, beginning balance + Net Income - Cash…
Q: Cefner Corporation paid dividends of P200,000 and P300,000 at the end of 2019 and 2020,…
A: Formula: Dividends to ordinary shareholders = Total dividends - Preferred dividends
Q: On January 1, 2021, Coronado Industries had 124000 shares of its $5 par value common stock…
A: Stock dividends: Stock dividends are the number of shares issued by a company to the existing…
Q: On January 1, 2021, had 2, 000, 0000 ordinary shares outstanding. On July 1, 2021, the entity issued…
A: Diluted earnings per share refers to a company’s per-share profit based on the number of common…
Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…
A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…
Q: If Apollo Company acquired a 30% interest in Twin Company on December 31, 2021 for P202,500 and…
A: The equity account of the company consists of all the money raised from the investors of the company…
Q: uring 2020, Ma
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a…
A: Share premium on ordinary shares issued = No. of shares issued x (Issue price per share - par value…
Q: On February 28, 2021, Dow sold 56,000 common shares. In keeping with its long-term share repurchase…
A: Earning per share is the portion of the total earnings of the company which is to be distributed to…
Q: On July 1, 2020, Selig Company purchased for cash 30% of the outstanding common stock of Spoor…
A: Equity method: Most common accounting technique used by the organization to get the access on…
Q: On October 1, 2021, Taehyung Company acquired 40,000 ordinary shares for $880,000 at to be held for…
A: As per IFRS 9, Financial instruments, The financial assets measured at fair value through profit and…
Q: On January 1, 2021, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd.…
A: In case of equity method of accounting for Investment then Investment income will be assessee share…
Q: At the beginning of 2021, Sunland Company had retained earnings of $409000. During the year Sunland…
A: Sunland company shall not recognize any gain or loss from stock transactions with its own…
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: On December 31, 2019, JnT Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share (EPS) can be defined as the ratio of total net income available for common…
Q: On July 1, 2021, Fontaine Company purchased for cash 40% of the outstanding common stock of Knoblett…
A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…
Q: In 2019, Chirac Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of…
A: a. Compute diluted earnings per share for 2020. DEPS = ($3,440 + (1 - 0.20) * $4,800) / 2,000 +…
Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…
A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…
Q: Marigold Corp. had 307000 shares of common stock issued and outstanding at December 31, 2020. During…
A:
Q: In 2021, Milka Company purchased an investment in equity securities. The related data of December…
A: FVOCI - Fair Value through Comprehensive Income Model - At the time of disposing of investment, the…
Q: On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary…
A: Following is the answer to the given question
Q: Assume that, on January 1, 2021, Everest Corporation paid $1,656,000 for its investment in 82,800…
A: Investment value at end = Value of investment + Percentage of investment ( Net income - Dividend…
Q: On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short…
A: As per equity method of valuation, The total equity available is Fair value + Income - dividend…
Q: An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's…
A: Given the following information: An investor company purchased 60,000 of the 500,000 outstanding…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share indicates the net income of the firm after preferred dividend which is available…
Q: In the December 31, 2020, statement of financial position, what is the carrying amount of the…
A: correct option with all workings are as follows
Q: Presented below is information related to Alligator Corporation for 2019. 1. On September 4,…
A: Journal entries: it is the duty of the accountant to record business economic and non economic…
During 2021, Bramble Corp. had the following activities related to its financial operations:
Carrying value of convertible |
$ 539000 | ||
Payment in 2021 of cash dividend declared in 2020 to preferred shareholders | 279000 | ||
Payment for the early retirement of long-term bonds payable (carrying amount $3928000) | 3973000 | ||
Proceeds from the sale of |
453000 |
The amount of net cash used in financing activities to appear in Bramble's statement of cash flows for 2021 should be
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.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. 6.73During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
- 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?Mills Company had five convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight-line method) and dividends on each security during 2019. Each convertible security is described in the following table. The corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which the securities would be included in the diluted earnings per share computations.
- 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.Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.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.
- 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?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.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.