Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Concept explainers

Question
Chapter 16, Problem 13P

1.

To determine

Ascertain the amount of prior period adjustments.

1.

Expert Solution
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Explanation of Solution

Retained earnings:

Retained earnings are that portion of profits which are earned by a company but not distributed to stockholders in the form of dividends. These earnings are retained for various purposes like expansion activities, or funding any future plans.

Amount of  prior period adjustments =(Patent capitalized(Estimated life of the asset)×Time period )×(1Corporation income tax)=($320,0008×612)×(130%)=$14,000

2.

To determine

Calculate the amount of preferred dividend.

2.

Expert Solution
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Explanation of Solution

Amouof preferred dividend = Value of preferred stock ×(Precent of preferred dividend)=$200,000×6%=$12,000

3.

To determine

Calculate the amount of common dividend (cash).

3.

Expert Solution
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Explanation of Solution

Amount of common cash dividend} =(Value of  common stock+ Issue of commonstock on February 2, 2019Purchase ofown common stock on March 2, 2019+Treasury stock reissued )×(Cash dividend per share)=(100,000+13,0005,000+2,000)×$1.50=$165,000

4.

To determine

Calculate the amount of common dividend (property).

4.

Expert Solution
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Explanation of Solution

An amount of $720,000 (fair value) is declared as a common dividend on property

5.

To determine

Ascertain the number of common shares issued at December 31, 2019.

5.

Expert Solution
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Explanation of Solution

Number of common shares issued at December 31, 2019}(Opening balance of common shareholder's equity on December 31, 2018)+(Shares issued on Febraury 2, 2019)=100,000+13,000=113,000

6.

To determine

Ascertain the total legal capital of common stock issued.

6.

Expert Solution
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Explanation of Solution

Total legal capital of common stock issued }=(Number of common shares issued at December 31, 2019)×Par value=113,000×$1=$113,000

7.

To determine

Compute the additional paid-in capital, including treasury stock transactions.

7.

Expert Solution
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Explanation of Solution

Additional paid-in capital}=[(Value of additonal paid -in capital)+((Shares issued on February 2, 2019)×(Market pricePar value))]+((Reissue oftreasury stock)×[Price per share of reissued treasury stockPer share value of treasury stock])=[$800,000+(13,000×($11$1))]+[2,000×($16$14)]=$930,000+$4,000=$934,000

8.

To determine

Compute the total amount of treasury stock.

8.

Expert Solution
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Explanation of Solution

Total amount of treasury stock= (Shares purchased held in treasury stock Reissue of treasury stock)×(Per value of treasury stock)=(5,0002,000)×$14=$42,000

9.

To determine

Ascertain the numerator used in computing the earnings per share.

9.

Expert Solution
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Explanation of Solution

An amount of $826,000 [$838,000$12,000]  is used a number for computing earnings per share.

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Chapter 16 Solutions

Intermediate Accounting: Reporting And Analysis

Ch. 16 - What items might a corporation include in the...Ch. 16 - Prob. 12GICh. 16 - Prob. 13GICh. 16 - Prob. 14GICh. 16 - Prob. 15GICh. 16 - On what date are stock dividends and splits...Ch. 16 - Prob. 17GICh. 16 - What two earnings per share figures generally are...Ch. 16 - Prob. 19GICh. 16 - Prob. 20GICh. 16 - Prob. 21GICh. 16 - A company with potentially dilutive share options...Ch. 16 - Prob. 23GICh. 16 - Cash dividends on the 10 par value common stock of...Ch. 16 - A prior period adjustment should be reflected, net...Ch. 16 - Prince Corporations accounts provided the...Ch. 16 - Effective May 1, the shareholders of Baltimore...Ch. 16 - Kent Corporation was organized on January 1, 2014....Ch. 16 - For purposes of computing the weighted average...Ch. 16 - In determining basic earnings per share, dividends...Ch. 16 - Hyde Corporations capital structure at December...Ch. 16 - Iredell Company has 2,500,000 shares of common...Ch. 16 - Prob. 10MCCh. 16 - Prob. 1RECh. 16 - Prob. 2RECh. 16 - Prob. 3RECh. 16 - Use the same facts as in RE 16-3, but instead...Ch. 16 - Given the following current year information,...Ch. 16 - In Year 2, Adams Corporation discovered that it...Ch. 16 - Howard Corporal ion had 10,000 shares of common...Ch. 16 - Given the following year-end information for...Ch. 16 - Aiken Corporation has compensatory share options...Ch. 16 - Marlboro Corporation has 9% convertible preferred...Ch. 16 - Sarasota Corporation has 9% convertible bonds...Ch. 16 - Given the following year-end information, compute...Ch. 16 - Various Dividends Carlyon Company listed the...Ch. 16 - Dividends Andrews Company has 80,000 available to...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Stock Dividend Comparison Although Oriole Company...Ch. 16 - Prior Period Adjustments Scobie Company began 2019...Ch. 16 - Prob. 7ECh. 16 - Prob. 8ECh. 16 - Prob. 9ECh. 16 - Shareholders Equity Herrera Manufacturing...Ch. 16 - Prob. 11ECh. 16 - Weighted Average Shares At the beginning of 2019,...Ch. 16 - Weighted Average Shares At the beginning of the...Ch. 16 - Earnings per Share The 2018 balance sheet for...Ch. 16 - Prob. 15ECh. 16 - Jumbo Corporation reported the following...Ch. 16 - Lucas Company reports net income of 5,125 for the...Ch. 16 - Monona Company reported net income of 29,975 for...Ch. 16 - Lyon Company shows the following condensed income...Ch. 16 - Extreme Company reported the following information...Ch. 16 - Mills Company had five convertible securities...Ch. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Tama Companys capital structure consists of common...Ch. 16 - Percy Company has 15,000 shares of common stock...Ch. 16 - Prob. 28ECh. 16 - Keener Company has had 1,000 shares of 7%, 100 par...Ch. 16 - Otter Tail, Inc., began operations in January 2015...Ch. 16 - On January 1, 2019, Kittson Company had a retained...Ch. 16 - Prob. 4PCh. 16 - Alert Companys shareholders equity prior to any of...Ch. 16 - Prob. 6PCh. 16 - Oakwood Inc. is a public enterprise whose shares...Ch. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Raun Company had the following equity items as of...Ch. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Gray Company lists the following shareholders...Ch. 16 - Included in the December 31, 2018, Jacobi Company...Ch. 16 - Prob. 16PCh. 16 - Graham Railways Inc. is evaluating its operations...Ch. 16 - Prob. 18PCh. 16 - Anoka Company reported the following selected...Ch. 16 - Winona Company began 2019 with 10,000 shares of 10...Ch. 16 - Waseca Company had 5 convertible securities...Ch. 16 - Roseau Company is preparing its annual earnings...Ch. 16 - Prob. 23PCh. 16 - Frost Company has accumulated the following...Ch. 16 - The controller of Red Lake Corporation has...Ch. 16 - Prob. 26PCh. 16 - Problems may be encountered in accounting for...Ch. 16 - Stock splits and stock dividends may be used by a...Ch. 16 - Earnings per share (EPS) is the most featured...Ch. 16 - The earnings per share data required of a company...Ch. 16 - Prob. 5CCh. 16 - Public enterprises are required to present...Ch. 16 - Prob. 7CCh. 16 - Ryan Company has as a goal that its earnings per...
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