WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?
Q: Define shareholders wealth. Explain how it is measured.
A: Shareholder valuation is assigned to a company's investors depending on the company's ability to…
Q: are units of equity or ownership in a company. * O Stocks O Bonds
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: Describe the sources that arise from Changes in shareholders’ equity.
A: Shareholders equity has three parts: contributed capital, retained earnings and other comprehensive…
Q: What is the recovery percentage of the shareholders based on the carrying amount of equity? 000/
A: Gain on Realized Assets 720000 Loss on realization of Assets 1280000 Additional Assets…
Q: What is meant by Owners’ equity?
A: The balance sheet is the financial statement of the business which represents the financial position…
Q: What amount should be reported as total shareholders' equity ad?
A: Total Shareholder's equity refers to the net worth of the company.Which is the amount that would be…
Q: What are the other names of shareholders equity?
A:
Q: What is the total Share Holder's Equity
A: Shareholders' equity is the owners' equity which is the owners claim over net assets of the company.…
Q: Describe related stockholders’ equity statements.
A: Stockholders’ equity statement: This statement shows the changes made in the stockholders’ equity…
Q: The group's debtors are equity stockholders." explain
A: Characteristics of Equity shareholders are as follows: Equity shareholders are permanent in nature…
Q: Describe the statement of shareholders’ equity.
A: Shareholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…
Q: What is shareholders equity
A: Share holders are the real owners of the company. Formula: Share holders equity = Total Assets -…
Q: What is founders’ shares?
A: Founders shares: Founders shares is the shares released to the originators of a public corporation…
Q: What is ESOP, employee stock ownership plan?
A: Introduction: ESOP plans are intended at developing the performance of the corporation and uprising…
Q: The total shareholder's equity is $
A: Owner’s equity: When the company raises funds through equity capital, the claims of the equity…
Q: Describe the components of shareholders’ equity and explain how they are reported in a statement of…
A: A stockholders’ equity section is prepared by the company to measure the total amount of capital…
Q: Which method is used to distribute dividends to common share holders?
A: Dividend Dividend is the share of profit distributed to the shareholders of the company. When a…
Q: Describe the sources of shareholder’s equity.
A: Stockholders’ equity or shareholder's equity: The claims of owners on a company’s resources, after…
Q: List the general rights of common stockholders.
A: Common stock holders are the real owners of the company.
Q: What are the fundamental rights of a common stockholder?
A: Introduction: A stockholder is also referred to as a shareholder or an individual who owns at least…
Q: what is eturn on common shareholders' equity role in analysis?
A: Return on common shareholders’ equity: It refers to the return that company investors of common…
Q: What is the purpose of The Statement of Shareholders’ Equity?
A: Definition: Statement of stockholder’s equity: The statement which reports the changes in stock,…
Q: Define statement of stockholders’ equity
A: Stockholders' equity: Stockholders' equity, also called as shareholders' equity, is the residual…
Q: Which of the following forms part of shareholders' equity?
A: Shareholders Equity is also called as net worth which shows how much capital the company has…
Q: How do shareholders increase or decrease shares
A: Shareholders are the person who purchases and sells shares of the company. These shareholders…
Q: What does shareholder’s equity includes? Explain them.
A: Shareholder’s equity: The claims of owner's on a company’s resources after the liabilities are paid…
Q: What are the four classifications within shareholders’ equity?
A: Shareholders’ equity: The claims of owners on a company’s resources, after the liabilities are…
Q: compute for the Equity Shareholder's Net Income
A:
Q: How does declaring a stock dividend affect the corporation's assets, liabilities, and total equity?
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: How much is the total Share Capital? How much is the total Additional Paid In Capital? How much is…
A: The additional paid in capital is the capital which has been paid by the shareholders to the company…
Q: what is a shareholder value
A: An investor, likewise alluded to as an investor, is an individual, organization, or foundation that…
Q: What are the two primary ways companiesraise common equity?
A: The mix of equity and debt in a business organization is known as the capital structure of the…
Q: 1. What percentage of total liabilities and stockholders’ equity is stockholders’ equity? What kinds…
A: 50%, The debt Equity ratio of the company will be 2:1.
Q: What other techniques can be applied to compute the intrinsic value of shares of the company?
A: Intrinsic value is the value inherent in the stock of a company based on how well it is expected to…
Q: What is the difference between the two basic sources of shareholders’ equity?
A: Shareholder's equity is the capital contributed by shareholders in the company and accumulated…
Q: What is return on shareholder's equity?
A: The return on shareholders' equity can be determined by using the following formula: ROE = Earnings…
Q: what is return on common shareholders' equity?
A: There are various ratios which measure the profitability of a firm like return on equity, return on…
Q: What is net worth or shareholders’ net worth?
A: The stock holder’s net worth or net worth is the difference between total assets and liabilities of…
Q: shareholders' equity section of the statement of financial position
A: A) 15% Mortgage Payable, due May 1, 2022 - It is a current liability. B) Allowance for Uncollectible…
Q: what is the shareholder value in M&A
A: The value delivered to a corporation's equity owners as a result of management's ability to increase…
Q: What are the categories of shareholder's equity?
A: Shareholders Equity means total amount belonging to the shareholders of the business. It means…
Q: Describe Earnings Available to Common Shareholders.
A: Earnings: The bottom line of income statement which is the result of excess of earnings from…
Q: What are the two sources of Ownership interests of shareholders?
A: Shareholders are those persons who purchases shares from the company and becomes owners of some…
Q: What is the legal rights of stockholders (common and perferred).
A: Stockholder: A stockholder is also known as a corporate shareholder or an individual who owns at…
Q: describe the components of shareholders’ equity
A: Shareholder's equity is calculated as the difference between the company's total assets and the…
Q: How does shareholder value relate to capital structure?
A: The combination of various types of external funds, known as capital, used to finance a corporation…
WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?
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- 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.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.
- Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.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.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- 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.Statement 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.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.
- During 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 lossStatement 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.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