XYZ Company declared a 2% stock dividend on common stock ($5 par). (Pretend there are 100,000 shares of common stock outstanding and that the current market value of a share of common stock on that date was $7.) Journalize this transaction. DATE Debit Credit X/X XYZ Company distributed the stock dividends from (h). Journalize this transaction. DATE Debit Credit X/X
Q: On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on…
A:
Q: SICO Co. has 8,000 shares Issued and outstanding. The per-share par value is $1.5; book value $40…
A: Stock Dividend - Stock Dividend is the additional common stock issued without any consideration of…
Q: On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common…
A: The purchase of treasury stock involves a debit to the Treasury Stock account and a credit to the…
Q: Richman Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 15%…
A: Stock Dividend - Stock Dividend is the dividend issued by the company in the form of shares. This is…
Q: On February 22, Brett Corporation acquired 180 shares of its $3 par value common stock for $26 each.…
A: The accounting entry on purchase of treasury share at 26 was Debit Treasury stock 4680 and credit…
Q: A corporation originally issued $6 par value common stock for $11 per share. It purchased the stock…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: Beacon Corporation issued a 3 percent stock dividend on 37,000 shares of its $7 par common stock. At…
A: A stock dividend is the unrestricted distribution of a company's common stock to its shareholders. A…
Q: ZY Company's Stockholders' equity is comprised o 1,000 shares of P2 par common stock, P4,000 of…
A: Premium per share = Market price per share - Par value per share = P5 - P2 = P3 per share
Q: Please help
A: a) Journal Entries: Date Account Journal Debit $ Credit $ Jan 10 Cash 104,000 Common…
Q: Nexis Corp. issues 1,970 shares of $9 par value common stock at $17 per share. When the transaction…
A: The journal entry to record the issue of shares as follows:
Q: When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48…
A: Dividend Arrearage = Preference Share amount per share * No. of share preference shares issued *…
Q: Trendy Computer Systems reported the following shareholders' equity section as of the beginning of…
A:
Q: Read & Learn Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On…
A: Number of Preferred Stock outstanding on 15th December = 1,000,000 shares Therefore, Number of…
Q: Badger Corporation issued 9,000 shares of its $5 par value common stock in payment for attomey…
A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 9000 x $5 =…
Q: On January 1, Sunland Company had 135000 shares of $10 par value common stock outstanding. On March…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: GHI Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000…
A: Dividend per share is computed as the total dividend paid divided by the number of shares…
Q: A company has 180,000 shares of common stock authorized with a par of $1 per share, of which 30,000…
A: Stock dividend is the dividend declared and distributed among the shareholders but in form of stock.…
Q: XYZ company's outstanding stock consists 10,000 shares of common stock with a $10 par value and…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Ayayai Company has outstanding 2,700 shares of $100 par, 7% preferred stock and 14,100 shares of $10…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Alma Corp. issues 2,150 shares of $9 par common stock at $15 per share. When the transaction is…
A: When the share is issued at an excess price than a par value of a share, it is recorded to the…
Q: Swifty Corporation's balance sheet reported the following: Capital stock outstanding, 4,500 shares,…
A: Journal entry refers to the recording of daily transactions of an organization. It has a credit and…
Q: Nylah Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares,…
A: Treasury stock: These are the own shares purchased by the issuing company from the open market.…
Q: Beacon Corporation issueda 4 percent stock dividend on 37,000 shares of its $8 par common stock. At…
A: Stock dividend is the dividend given to the shareholders' in the form of shares.
Q: CACA Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000…
A: Dividends: Dividends are given to share holders as a return on their investment in the company.
Q: Tamara Corporation has 5,000 shares of $10 par value common stock outstanding and retained earnings…
A: Event Account Titles and Explanation Debit Credit a Retained earnings $ 10,000 To…
Q: The following account balances appear on the balance sheet of Osgood Industries: Common Stock…
A: The company raises the finance from various sources, one of them is common stock. The investor who…
Q: op-Value Corporation has 256,500 shares of $35 par common stock outstanding. On September 2,…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
Q: At the start of 20X5, Happy Corp. had 20,000 shares of $5 par common stock issued and outstanding.…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: On January 1, Pharoah Company had 87000 shares of $10 par value common stock outstanding. On May 7,…
A: Additional stocks issued to existing common stockholders with no distribution of entity's…
Q: On January 1, Swifty Corporation had 71000 shares of $10 par value common stock outstanding. On June…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Top-Value Corporation has 900,000 shares of $26 par common stock outstanding. On September 2,…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: SICO Co. has 8,000 shares issued and outstanding. The per-share par value is $1.5; book value $40…
A: The dividend is considered as a part of the distributable profit distributed by the company to its…
Q: Emma Systems, Inc. declared and issued a 9 percent stock dividend. The company has 720,000 shares…
A: Solution: Amount of stock dividend = Outstanding shares * 9%* Market value per shar = 45668*9%*$6 =…
Q: Upperchurch Company reports the following components of stockholders' equity on January 1. Common…
A: Date Transaction Impact on Equity Amount Jan'1 Total Stockholders' Equity - January'1 $…
Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…
A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…
Q: Ray Corp. declared a 5% stock (share) dividend on its 10,000 issued and outstanding shares of P2 par…
A: A stock dividend seems to be the free distribution of a firm's common shares to its owners. When a…
Q: A company was started on January 1 of Year 1.During the first year of business, the following…
A: Paid in capital common stock contains preferred & common stock in total. It is also termed as…
Q: On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common…
A: The question is based on the concept of Financial Accounting.
Q: Beacon Corporation issued a 4 percent stock dividend on 37,500 shares of its $8 par common stock. At…
A: Ordinary stock dividend - Small stock dividend (usually less than 20-25%) recorded at FV of stock at…
Q: How many shares of common stock were outstanding at the end of the period? How many shares of…
A: 1. When common stock is issued for cash, cash, and common stock increase. Cash XXXX…
Q: Sanders Corporation has the following shares outstanding: 6,000 shares of $50 par value, 6%…
A: Please find the answers to the above questions below:
Q: The stockholders' equity section of Martino Inc. at the beginning of the current year appears below.…
A: Stockholder’s equity represents the amount of resources which are available to stockholders or…
Q: Luke Enterprises has 300,000 shares of $20 par common stock outstanding. On January 19, Luke…
A: Working note 1: Determine the amount of stock dividend to be paid. Particulars Number…
Q: Nexis Corp. issues 1,110 shares of $9 par value common stock at $17 per share. When the transaction…
A: When common stock is issued anything received in excess of par is credited to paid in capital in…
Q: Bonita Corp. issues 1500 shares of $10 par value common stock at $16 per share. When the transaction…
A: The question is multiple choice question. Required Choose the Correct Option.
XYZ Company declared a 2% stock dividend on common stock ($5 par). (Pretend there are 100,000 shares of common stock outstanding and that the current market value of a share of common stock on that date was $7.) Journalize this transaction.
DATE |
|
Debit |
Credit |
X/X |
|
|
|
|
|
|
|
|
|
|
|
XYZ Company distributed the stock dividends from (h). Journalize this transaction.
DATE |
|
Debit |
Credit |
X/X |
|
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.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.
- CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of 50 par preferred stock and 70,000 shares of 1 par common stock are outstanding. May 10 Paid the cash dividends. Oct. 15 Declared semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on November 5, payable on November 20. Nov. 20 Paid the cash dividends. 22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at 15 per share. Dec. 16 Issued certificates for common stock dividend. 20 Board of directors declared a two-for-one common stock split. REQUIRED Prepare journal entries for the transactions.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.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.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.