XYZ Corporation reported the following shareholders equity on December 11, 2021 8% cumulative preference share capital, P50 par, liquidating value P55 per share, 20,000 share authorized, issued and outstanding Ordinary share capital, P25 par 200,000 shares authorized, 100,000 shares issued and outstanding Retained Earnings P400,000 Dividends on preference shares have been paid through 2019 but have not been declared for 2020 and 2021. On December 31, 2021, what is the book value per ordinary share
Q: How much discount interest will there be if $12,500 is due at the end of 3 years with a 12% discount…
A: Concept of calculating the present value Calculation of Present Value Formula for Calculation of…
Q: Jono On December 31,2018 A, B and C formed a partnership wherein A contributed P4,800,000 for 20%…
A: As per the given information: Contribution of A for 20% interest - P4,800,000Contribution of B for…
Q: Questions 2 and 3 are based on the following: Several years ago, Roel and Jek formed RJ Partnership.…
A:
Q: Prepare the acquisition analysis at 1 July 2019. Prepare the consolidation worksheet entries for…
A:
Q: In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for…
A: Adjusting entries: These are basically the journal entries that are recorded or accounted by the…
Q: After reading an article about activity-based costing in a trade journal for the furniture industry,…
A: The overhead is applied to the production on the basis of the predetermined overhead rate. The…
Q: Damon Davis was doing the paperwork for Drano Plumbing. He estimated a net profit of $50,000. He…
A: The error of the principle, when the rule being applied is incorrect, maybe the most likely reason…
Q: Consider the following liabilities of Future Brands, Inc., at December 31, 2021, the company's…
A: Q1. The note is classified as Long-term liabilities as the same is payable after12 months though…
Q: adx:
A: In South Africa , South African Revenue Service [SARS] , a reveue…
Q: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet
A: Balance sheet is prepared by the company so that the position of the company which is the financial…
Q: Assume the following information for a merchandising company: Number of units sold 19,900…
A: Variable Expenses are those expense which will change according to the level of operation. Hence,…
Q: 27. Mollie operates her consultancy business as a sole trader. She is considering whether to…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: In 2021, XYZ Corporation, acquired 3,000 shares of its P20 par value ordinary share capital at P72…
A: Treasury stocks are reacquired shares by the company. These treasury shares can be the issued in…
Q: How long will it take for $7000 to have a maturity value of $12000 if it is invested at 15%…
A: Interest is the amount earned or charged during the period on amount invested or borrowed. It can be…
Q: How do you think accounting standards should be set? Is that the approach currently taken by the…
A: Solution The most feasible way may be to be aware of both the politics of the environment and the…
Q: Brown Corporation owns an office building and leases the offices under a one-year rental agreement.…
A: The idea behind accrual basis accounting is to document income as it is generated and outlays as…
Q: Daniel deposits $2,000 per year at the end of the year for the next 15 years into an IRA account…
A: Each Year Deposited Amount (PMT) = $2,000 Number of Period (n) = 15 years Interest rate per period…
Q: Assume the following information from a schedule of cost of goods manufactured: Beginning work…
A: The cost of goods manufactured includes the total cost of goods that are finished during the period.…
Q: What is the Goods amount finished in January? Including goods in process January 1st 63,500 units.…
A: Finished goods are the products which has been completed during the year. This includes opening work…
Q: Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods…
A: Goods may be shipped FOB shipping point or FOB destination . When the goods are shipped FOB shipping…
Q: The Opposition Sales Corporation is expecting an increase of fixed costs by 101,250 upon moving…
A: The question is based on the concept of Financial Management. Variable cost is the cost that remains…
Q: Ayres Services acquired an asset for $96 million in 2021. The asset is depreciated for financial…
A: Ayres Services Computation of Book tax differences and balance to be reported in a deferred tax…
Q: Problem# 2 MJE Sporting Goods Company manufactured 100,000 units in 2022 and reported the following…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Jeff Bezos, after stepping down from Amazon, forms a new corporation by contributing land with a…
A: Tax refers to the amount of money which the government requires people or taxpayer to pay in…
Q: An analysis of the firm’s current financial condition as indicated by an analysis of the most recent…
A: Financial plan - it is a document that summarize the current financial situation of the firm,…
Q: At the end of the financial year 30 June 2022, a company recorded accrued salaries payable of $4…
A: In reversing entry is not made on July 1 then the financial statements would be error for month of…
Q: A company has fixed costs of P150,000, a variable cost ratio of 60%, and a margin of safety ratio of…
A: Here, Fixed costs = P150,000 Variable cost ratio = 60% Margin of safety ratio = 25% Find: Amount of…
Q: In 2001 and 2002 there were several high-profile US corporate collapses associated with misleading…
A: Answer:- Financial statements meaning:- Financial statements are documents that describe a…
Q: Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for…
A: Overhead cost is applied on an estimated basis, based on the direct labor cost.
Q: Assume that the beer arrived on August 15, and the company made payment on October 15. On August 15,…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Compute the equivalent units of production for (a) materials and (b) conversion costs for the month…
A: Meaning of equivalent units The presence of opening or closing work in progress creates an…
Q: Accounting On January 1, 2022, Pronto Company acquired all of Speedy Inc.'s voting stock for…
A: C $2400000 Please fallow the answer below Sales revenue. 840,00,000 Less:COGS…
Q: in 2018. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille's…
A: Taxable income refers to the concept of determining the desired sum of tax an entity needs to pay to…
Q: A) Can the government tax its own agencies or instrumentalities? Explain.
A: Government tax refers to the tax amount which is a mandatory fee or the financial charge that is…
Q: he contribution margin ratio for Martinez Company is 51%, sales were $707,000, and fixed costs were…
A: The operating income is the income available after deductions of the variable cost and fixed cost…
Q: 12. The partnership agreement of Walter, Xylo, and Yamete provides for the following profit-sharing…
A: Share of Profit in Partnership The profits and losses of the business are divided among the partners…
Q: Suppose this information is available for PepsiCo, Inc. for 2025, 2024, and 2023. (in millions)…
A: Days in Inventory - Days in Inventory ratios show the time required to sell the inventory lying in…
Q: According to the historical cost system, what is the objective of accounting and the role of profit?…
A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…
Q: High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company…
A: Answer - “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: I just need question number 7 which is: Prepare entry *C (asterisk C) to convert parent's beginning…
A: The retained earnings means the earnings that is remained after the payment of the dividend and the…
Q: An amount of $16,250 is invested at 13% simple interest for 275 days. a.) What are the exact and…
A: Lets understand the basics. Interest is needs to earn on a amount invested at particular rate for…
Q: Green Corporation began operations in 2021. An analysis of Green’s equity investments portfolio…
A: Unrealized holding loss=Aggregate cost of Non-trading Investments- Aggregate Fair value of…
Q: Which of the following statement is INCORRECT?
A: Partnership business is one of the business formation in which like in this question Daniel and…
Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $130 million of 8% bonds, dated…
A: BOND Bond Is a Security which is Issued by the Companies and Government to generate fund for…
Q: Information relating to the operating segments of Purple Company for the year 2021, is presented…
A: Reportable Segment: The Financial Accounting Rules Board (FASB) is in charge of determining the…
Q: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Income taxes Net…
A: Income Statement - Income Statement shows the revenue earned and expenses incurred in the accounting…
Q: XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization:…
A: The contributed capital can be defined as the cash or other assets given by the shareholder to…
Q: 3. A. B. C. D. Which of the following statement is true? Company has no director and shareholder A…
A: Corporation - An organization that has been registered as a corporation under a corporation act has…
Q: Capital balances in the WXY partnership are W, Capital P 60,000; X Capital P 50,000 and Y Capital…
A: Solution: Existing capital of partnership before admission of Z = P60,000 + P50,000 + P40,000 =…
Q: Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of…
A: Over applied to supreme using Activity based costing. Overhead relating to machining allocated based…
Step by step
Solved in 3 steps
- 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.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.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
- 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. 3,370,000Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 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.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?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.
- 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. 6.73Outstanding 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.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.