menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingIntermediate Accounting: Reporting And Analysis3rd Edition

close solutoin list
Chapter 16, Problem 16P
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 8MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 28E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Problem 20P
Problem 21P
Problem 22P
Problem 23P
Problem 24P
Problem 25P
Problem 26P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 9C
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
3 views

Cory Company’s shareholders’ equity on January 1, 2019, is a follows:

Chapter 16, Problem 16P, Cory Companys shareholders equity on January 1, 2019, is a follows: In January 2019, Cory recalled

In January 2019, Cory recalled and retired the 8% preferred stock. This stock originally had been issued for $105 per share. In April, it declared and issued a 10% stock; dividend on the common stock; the stock was then selling for $16 per share. This was the only issuance of common or preferred stock during the year. During November, Cory reacquired as treasury stock 1,000 shares of its common stock at $18 per share (it uses the cost method for treasury stock). State law requires a restriction of retained earnings equal to the cost of all treasury shares held. Cory discloses this restriction by means of a note to the financial statements. In December, the annual cash dividends on the outstanding preferred stock and a $1 per share cash dividend on the outstanding common stock were declared and paid. At the end of December, net income of $87,000 was closed from Income Summary to Retained Earnings. During the year-end audit, it was found that two errors had been made during 2018 for both financial reporting and income tax reporting. First, depreciation on certain machinery in the amount of $10,000 was inadvertently omitted. Second, a mathematical mistake was made in the calculation of the accumulated depreciation related to the sale of equipment. Consequently, the reduction in accumulated depreciation and the amount of the gain recognized were both understated by $8,000. Roth errors are considered material. Cory has been subject to a 30% income tax rate for the past several years.

Required:

  1. 1. Prepare journal entries to record the preceding transactions.
  2. 2. Prepare Cory's statement of retained earnings and any related notes to its financial statements for the year ended December 31, 2019.

1.

To determine

Prepare necessary journal entry to record the given transaction.

Explanation

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.

Prepare necessary journal entry to record the given transaction.

DateAccount Titles and explanationDebit ($)Credit ($)
JanuaryPreferred stock , 8%, $100 par 100,000 
 

Additional paid-in capital on preferred   

     stock (1,000×$5[$105−$100]) 

5,000 
 

Retained earnings

    (500×$15[$125−$110])

11,000 
     Cash (1,000×$116) 116,000
 ( To record 1,000 shares that were recalled and retired)  
    
AprilRetained earnings [22,000 shares × 10%×$16]35,200 
 

    Common stock to be distributed

     [2,200 shares×$10]

 22,000
 

    Additional paid-in capital on common

     stock 

 13,200
 (To record the declaration and issuance of stock dividend on common stock)  
    
 Common stock to be distributed 22,000 
     Common stock, $10 par 22,000
 (To record the issuance of common stock)  
    
NovemberTreasury stock [1,000 shares×$18]18,000 
     Cash 18,000
 (To record the treasury stock 1,000 shares on common being reacquired for $18)  
    
DecemberRetained earnings10,500 
 

    Dividend payable: preferred stock

     [1,500 shares×7%×$,100]

 10,500
 (To record the declaration of annual cash dividend on preferred stock)  
    
DecemberRetained earnings23,200

2.

To determine

Prepare the statement of retained earnings for the Company C for the year ended December 31, 2019 and also provide necessary notes to its financial statement for the year ended December 31, 2019.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 16,
Problem 15P
Chapter 16,
Problem 17P
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 16 Solutions

Show all chapter solutions add
Ch-16 P-1GICh-16 P-2GICh-16 P-3GICh-16 P-4GICh-16 P-5GICh-16 P-6GICh-16 P-7GICh-16 P-8GICh-16 P-9GICh-16 P-10GI
Ch-16 P-11GICh-16 P-12GICh-16 P-13GICh-16 P-14GICh-16 P-15GICh-16 P-16GICh-16 P-17GICh-16 P-18GICh-16 P-19GICh-16 P-20GICh-16 P-21GICh-16 P-22GICh-16 P-23GICh-16 P-1MCCh-16 P-2MCCh-16 P-3MCCh-16 P-4MCCh-16 P-5MCCh-16 P-6MCCh-16 P-7MCCh-16 P-8MCCh-16 P-9MCCh-16 P-10MCCh-16 P-1RECh-16 P-2RECh-16 P-3RECh-16 P-4RECh-16 P-5RECh-16 P-6RECh-16 P-7RECh-16 P-8RECh-16 P-9RECh-16 P-10RECh-16 P-11RECh-16 P-12RECh-16 P-1ECh-16 P-2ECh-16 P-3ECh-16 P-4ECh-16 P-5ECh-16 P-6ECh-16 P-7ECh-16 P-8ECh-16 P-9ECh-16 P-10ECh-16 P-11ECh-16 P-12ECh-16 P-13ECh-16 P-14ECh-16 P-15ECh-16 P-16ECh-16 P-17ECh-16 P-18ECh-16 P-19ECh-16 P-20ECh-16 P-21ECh-16 P-22ECh-16 P-23ECh-16 P-24ECh-16 P-25ECh-16 P-26ECh-16 P-27ECh-16 P-28ECh-16 P-1PCh-16 P-2PCh-16 P-3PCh-16 P-4PCh-16 P-5PCh-16 P-6PCh-16 P-7PCh-16 P-8PCh-16 P-9PCh-16 P-10PCh-16 P-11PCh-16 P-12PCh-16 P-13PCh-16 P-14PCh-16 P-15PCh-16 P-16PCh-16 P-17PCh-16 P-18PCh-16 P-19PCh-16 P-20PCh-16 P-21PCh-16 P-22PCh-16 P-23PCh-16 P-24PCh-16 P-25PCh-16 P-26PCh-16 P-1CCh-16 P-2CCh-16 P-3CCh-16 P-4CCh-16 P-5CCh-16 P-6CCh-16 P-7CCh-16 P-9C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Nursing staff budget Mercy Hospital staffs its medical/surgical floors with nurses depending on the number of p...

Financial And Managerial Accounting

Costco Wholesale Corporation operates membership warehouses that sell a variety of branded and private label pr...

Financial Accounting

Flexible overhead budget Wiki Wiki Company has determined that the variable overhead rate is 4.50 per direct la...

Financial & Managerial Accounting

Explain the difference between the admission of a new partner to a partnership (a) by purchase of an interest f...

Accounting

Is access control of greater concern in the flat-file or database file environment?

Accounting Information Systems

To create a meaningful performance report, actual costs and expected costs should be compared a. at the actual ...

Managerial Accounting: The Cornerstone of Business Decision-Making

Effect of cash dividend and stock split Indicate whether the following actions would (+) increase, () decrease,...

Corporate Financial Accounting

When entering the credit item in a general journal, it should be listed after all debits and indented.

College Accounting, Chapters 1-27

"M2 is a better definition of the money supply than M1." Agree or disagree with this statement. In your argumen...

Economics:

The United States restricts imports but, at the same time, supports the WTO and international banks whose objec...

Foundations of Business (MindTap Course List)

(Association Versus Causation) Suppose I observe that communities with lots of doctors tend to have relatively ...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Discuss the importance of global marketing

MKTG 12:STUDENT ED.-TEXT

Adam Smith's invisible hand" refers to a. the subtle and often hidden methods that businesses use to profit at ...

Essentials of Economics (MindTap Course List)

The Bureau of Transportation Statistics Omnibus Household Survey is conducted annually and serves as an informa...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

What is the discount rate? What happens to the money supply when the Fed raises the discount rate?

Brief Principles of Macroeconomics (MindTap Course List)

Business School Ranking The dean of business school at a major university in your state has students in class d...

Management, Loose-Leaf Version

(International Trade) Why does international trade occur? What does it mean to run a deficit in the merchandise...

ECON MICRO

What are two situations in which most economists view a budget deficit as justifiable?

Principles of Macroeconomics (MindTap Course List)

Would a failure to recognize growth options tend to cause a firms actual capital budget to be above or below th...

Fundamentals of Financial Management (MindTap Course List)

Describe the four variables of the marketing mix.

Contemporary Marketing

REQUIRED ANNUITY PAYMENTS Your father is 50 years old and will retire in 10 years. He expects to live for 25 ye...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Why might economic advisers to the president disagree about a question of policy?

Principles of Microeconomics (MindTap Course List)

You take 100 you had kept under your mattress and deposit it in your bank account. If this 100 stays in the ban...

Principles of Economics (MindTap Course List)

(Real Wages) In the accompanying exhibit, how does the real wage rate at point c compare with the real wage rat...

ECON MACRO

INSTRUCTOR: Visit the Instructor Companion Website for lecture notes, solutions, discussion guides, and other r...

Essentials of Business Communication (MindTap Course List)

What are the five IT control process domains in COBIT 5?

Accounting Information Systems

On a work sheet, where will the amount of the ending merchandise inventory be recorded?

College Accounting (Book Only): A Career Approach

Costs per equivalent unit Georgia Products Inc. completed and transferred 89,000 particle board units of produc...

Financial & Managerial Accounting

Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtfu...

Financial Accounting

What expense do corporations incur that sole proprietorships and partnerships do not?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. From the...

College Accounting (Book Only): A Career Approach

Classifying costs The following is a list of costs that were incurred in the production and sale of lawn mowers...

Accounting (Text Only)

Why one nation experiences economic growth and another doesnt is a question that has intrigued economists since...

Exploring Economics

In Chapter 7, we saw that if the market interest rate, rd, for a given bond increased, the price of the bond wo...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Using Past Information to Estimate Required Returns Use online resources to work on this chapter's questions. P...

Fundamentals of Financial Management (MindTap Course List)

According to traditional Keynesian analysis, why does a tax cut have a smaller effect on GDP than a similarly s...

Principles of Macroeconomics (MindTap Course List)

Define Web Services.

Pkg Acc Infor Systems MS VISIO CD

A survey of 131 investment managers in Barrons Big Money poll revealed the following: 43% of managers classifie...

Statistics for Business & Economics, Revised (MindTap Course List)

Peroni Company paid wages of 170,900 this year. Of this amount, 114,000 was taxable for net FUTA and SUTA purpo...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Purchase-related transactions using perpetual inventory system The following selected transactions were complet...

Corporate Financial Accounting

Determining amounts to be paid on invoices Determine the amount to be paid in full settlement of each of the fo...

Survey of Accounting (Accounting I)

Give an example of an indirect effect of crowding out.

Macroeconomics

Diagrammatically represent what happens to the efficient number of gifts that a gift giver wants to give to a g...

Economics (MindTap Course List)

Acron is a large drug company. At the current time, the beginning of year 0, Acron is trying to decide whether ...

Practical Management Science

In part (b) of Exhibit A-3, the economy is initially in short-run equilibrium at real GDP level Y1 and price le...

Economics For Today

Correct the possessives. The new hires confidence was crushed by the managers harsh tone. This companies missio...

Bcom

Provide a list of companies that, based on your reading of recent articles in the popular press, fit into the c...

Purchasing and Supply Chain Management

When a single-price monopolist maximizes profits, price is greater than marginal cost. In other words, buyers a...

Microeconomics

Define static budget. Give an example that shows how reliance on a static budget could mislead management.

Cornerstones of Cost Management (Cornerstones Series)

bartleby
© bartleby 2019