Business
AccountingIntermediate Accounting: Reporting And AnalysisRestrictions Pemberton Company has a retained earnings balance of $400,000 at the end of 2019. During 2019, it had issued $100,000 of 5-year, 12%, long-term bonds. The bond provisions require that each year over the 5-year period an additional $20,000 of retained earnings be unavailable for dividends. This restriction is in addition to any other retained earnings restrictions that the company might make. At the end of 2019, Pemberton held treasury stock costing $15,000. Required: Show how Pemberton would report its retained earnings in its 2019 financial statements. Include a note to the financial statements fully describing the restrictions.
close solutoin list

Restrictions Pemberton Company has a retained earnings balance of $400,000 at the end of 2019. During 2019, it had issued $100,000 of 5-year, 12%, long-term bonds. The bond provisions require that each year over the 5-year period an additional $20,000 of retained earnings be unavailable for dividends. This restriction is in addition to any other retained earnings restrictions that the company might make. At the end of 2019, Pemberton held treasury stock costing $15,000. Required: Show how Pemberton would report its retained earnings in its 2019 financial statements. Include a note to the financial statements fully describing the restrictions.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
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
Chapter 16, Problem 7E
Textbook Problem

Restrictions Pemberton Company has a retained earnings balance of $400,000 at the end of 2019. During 2019, it had issued $100,000 of 5-year, 12%, long-term bonds. The bond provisions require that each year over the 5-year period an additional $20,000 of retained earnings be unavailable for dividends. This restriction is in addition to any other retained earnings restrictions that the company might make. At the end of 2019, Pemberton held treasury stock costing $15,000.

Required:

Show how Pemberton would report its retained earnings in its 2019 financial statements. Include a note to the financial statements fully describing the restrictions.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.See solution
Chapter 16,
Problem 6E
Chapter 16,
Problem 8E

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 16 Solutions

Intermediate Accounting: Reporting And Analysis
Show all chapter solutions
Ch. 16 - What are the four important dates in regard to a...Ch. 16 - How does the ex-dividend date differ from the date...Ch. 16 - What is fully participating preferred stock?...Ch. 16 - Discuss how a corporation records the declaration...Ch. 16 - Distinguish between an ordinary and a special...Ch. 16 - Distinguish between small and large stock...Ch. 16 - How does the accounting for a liquidating dividend...Ch. 16 - How does a corporation record and report a...Ch. 16 - For what reasons would a corporation restrict its...Ch. 16 - What changes does a corporation include in its...
Ch. 16 - What items might a corporation include in the...Ch. 16 - What is the suggested format for the statement of...Ch. 16 - What is a simple capital structure?Ch. 16 - How is basic earnings per share computed for a...Ch. 16 - What is the weighted average number of shares for...Ch. 16 - On what date are stock dividends and splits...Ch. 16 - Identity several securities that might be found in...Ch. 16 - What two earnings per share figures generally are...Ch. 16 - What is the treasury stock method? How is the...Ch. 16 - Discuss how to develop a ranking for determining...Ch. 16 - A company with potentially dilutive share options...Ch. 16 - A company with potentially dilutive share options...Ch. 16 - Hoke Company suffers a large loss of one of its...Ch. 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 - At December 31, 2019, Talbot Corporation had...Ch. 16 - Edgefield Corporation has issued 10%,...Ch. 16 - York Corporation declares a property dividend,...Ch. 16 - Pickens Corporation declares and issues a 10%...Ch. 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 - Various Dividends Stamboul Company lists the...Ch. 16 - Stock Dividend The shareholders equity of Raven...Ch. 16 - Stock Dividend Comparison Although Oriole Company...Ch. 16 - Prior Period Adjustments Scobie Company began 2019...Ch. 16 - Restrictions Pemberton Company has a retained...Ch. 16 - Retained Earnings Statement Rolt Company began...Ch. 16 - Retained Earnings Statement On January 1, 2019,...Ch. 16 - Shareholders Equity Herrera Manufacturing...Ch. 16 - Changes in Shareholders Equity The shareholders...Ch. 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 - Earnings per Share Rodgers Corporation reported...Ch. 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 - Francis Company has 24,000 shares of common stock...Ch. 16 - Marion Company has 30,000 shares of common stock...Ch. 16 - Palo Alto Company earned net income of 43,800...Ch. 16 - Dream Corporation reported net income of 44,000...Ch. 16 - Tama Companys capital structure consists of common...Ch. 16 - Percy Company has 15,000 shares of common stock...Ch. 16 - Francis Company has 20,000 shares of common stock...Ch. 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 - Youve been hired to perform an audit of Hubbard...Ch. 16 - Alert Companys shareholders equity prior to any of...Ch. 16 - Olivia Company began 2019 with a Retained Earnings...Ch. 16 - Oakwood Inc. is a public enterprise whose shares...Ch. 16 - Dakota Corporation had the following shareholders...Ch. 16 - Dana Company reported the following amounts in the...Ch. 16 - The shareholders equity section of Gaines...Ch. 16 - Raun Company had the following equity items as of...Ch. 16 - Isanti Inc. finances its capital needs...Ch. 16 - Truman Co. is a publicly held company whose shares...Ch. 16 - Gray Company lists the following shareholders...Ch. 16 - Included in the December 31, 2018, Jacobi Company...Ch. 16 - Cory Companys shareholders equity on January 1,...Ch. 16 - Graham Railways Inc. is evaluating its operations...Ch. 16 - Mantego Company listed the following selected...Ch. 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 - At the beginning of 2019, Microbee Honey...Ch. 16 - Frost Company has accumulated the following...Ch. 16 - The controller of Red Lake Corporation has...Ch. 16 - Olmstead Corporations capital structure is as...Ch. 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 - Brady Company has 30,000 shares of 10 par value...Ch. 16 - Public enterprises are required to present...Ch. 16 - Jones Company has adopted a traditional share...Ch. 16 - Ryan Company has as a goal that its earnings per...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Analyze and compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in ...

Corporate Financial Accounting

DBMS VERSUS FLAT-FILE PROCESSING Werner Manufacturing Corporation has a flat-file processing system. The inform...

Accounting Information Systems

Financial statements Assume that you recently accepted a position with Five Star National Bank Trust as an ass...

Accounting

Break-even sales and cost-volume-profit chart For the coming year, Culpeper Products Inc. anticipates a unit se...

Financial And Managerial Accounting

Nonuniform Inputs, Weighted Average Carter Inc. had the following production and cost information for its fabri...

Managerial Accounting: The Cornerstone of Business Decision-Making

Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon .com uses its e-c...

Financial Accounting

CASH RECEIVED FOR INTEREST Eary Companys income statement for 20-2 reported interest revenue of 430. The compar...

College Accounting, Chapters 1-27

Flexible overhead budget Leno Manufacturing Company prepared The following factory overhead cost budget for the...

Financial & Managerial Accounting

(Price Floor)J here is considerable interest in whether the minimum wage rate contributes to teenage unemployme...

ECON MACRO

The ability of insurance to spread risk is limited by a. risk aversion and moral hazard. b. risk aversion and a...

Principles of Economics (MindTap Course List)

Tablet PC Comparison provides a wide variety of information about tablet computers. The companys website enable...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

(Household Production) What factors does a householder consider when deciding whether to produce a good or serv...

ECON MICRO

Assume that you have a short investment horizon (less than 1 year). You are considering two investments: a 1-ye...

Fundamentals of Financial Management (MindTap Course List)

Give three examples of important trade-offs that you face in your life.

Principles of Microeconomics (MindTap Course List)

Which of the following is a positive, rather than a normative, statement? a. Law X will reduce national income....

Essentials of Economics (MindTap Course List)

Is a family a household? Is a household a family?

Economics:

Contrast the focus of marketing activities during the five eras of marketing history.

Contemporary Marketing

Would each of the following groups be happy or unhappy if the U.S. dollar appreciated? Explain. a. Dutch pensio...

Brief Principles of Macroeconomics (MindTap Course List)

CAPITAL BUDGETING CRITERIA Your division is considering two projects. Its WACC is 10%, and the projects after-t...

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

Which nations are the principal trading partners of the United States? What are the major U.S. imports and expo...

Foundations of Business (MindTap Course List)

Define the terms product item, product line, and product mix

MKTG 12:STUDENT ED.-TEXT

The following is a list of 12 control plans from this chapter or from Chapters 8 and 9. These are followed by a...

Accounting Information Systems

Miliennials are frequentiy criticized for job hopping. but some career experts behave that changing ones job ev...

Essentials of Business Communication (MindTap Course List)

Current Events of an Unethical Type"6 Step 1. Prior to meeting as a group, each person should find two newspape...

Management, Loose-Leaf Version

If the Fed wants to increase the money supply with open-market operations, what does it do?

Principles of Macroeconomics (MindTap Course List)

(Supply Shifters) List the five things that are held constant along a market supply curve, and identify the cha...

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

Which of the following is not a deduction from total earnings? a. Federal income tax b. Union dues c. 2.5 hours...

College Accounting (Book Only): A Career Approach

Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed addit...

Financial Accounting

Ratio of cash to monthly cash expenses Financial data for Bonita Company follow: For Year Ended December 31 Ca...

Accounting (Text Only)

Differential analysis for machine replacement Kim Kwon Digital Components Company assembles circuit hoards by u...

Financial & Managerial Accounting

If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of de...

Exploring Economics

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)

Is it better for a firms actual stock price in the market to be under, over, or equal to its intrinsic value? W...

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

LOWER-OF-COST-OR-MARKET Stalberg Companys beginning inventory and purchases during the fiscal year ended Decemb...

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

Ms. Valli of All About You Spa has decided to expand her business by adding two lines of merchandisea selection...

College Accounting (Book Only): A Career Approach

MERGER VALUATION Harrison estimates that if it acquires Van Buren, the year-end dividend will remain at 2.00 a ...

Fundamentals of Financial Management (MindTap Course List)

Explain why economists usually oppose controls on prices.

Principles of Macroeconomics (MindTap Course List)

Develop a research paper on the use of the Internet to support EDI between companies. Your paper should conside...

Pkg Acc Infor Systems MS VISIO CD

Statement of cash flowsindirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December...

Corporate Financial Accounting

List the penalties imposed on the employer for the following: a. Filing Form 941 late. b. Seven days late makin...

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

Identify fixed and variable costs Intuit Inc. (INTU) develops and sells software products for the personal fina...

Survey of Accounting (Accounting I)

A common characteristic of oligopolies is a. interdependence in pricing decisions. b. independent pricing decis...

Economics For Today

Discuss the following statement: Supply management not only buys parts or services from suppliersit often buys ...

Purchasing and Supply Chain Management

In Exhibit 4(a), determine the slope between points C and D.

Economics (MindTap Course List)

Kidnappers cant be rational because no rational person would be a kidnapper. Comment.

Macroeconomics

Ships arrive at a port facility at an average rate of two ships every three days. On average, it takes a single...

Practical Management Science

The controller should be a member of the top management staff. Do you agree or disagree with this statement? Ex...

Cornerstones of Cost Management (Cornerstones Series)

What is the major difference between the capture theory of regulation and the public interest theory of regulat...

Microeconomics

Insert semicolons, colons, and commas where needed, and delete them where they are unnecessary. Write correct i...

Bcom

Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada a...

Managerial Accounting

18. What is treasury stock?

Cornerstones of Financial Accounting

EXHIBIT 12 A Perfectly Competitive Labor Market In Exhibit 12, how many thousands of workers are the firms will...

Micro Economics For Today

Use the aggregate expenditures model to demonstrate the multiplier effect.

MACROECONOMICS FOR TODAY

Evaluate the following statements. “An increase in the price of steel will be passed along to consumers in the ...

Economics: Private and Public Choice (MindTap Course List)

Should policy makers seek to set the tax on an economic activity at a rate that will maximize the revenue deriv...

Microeconomics: Private and Public Choice (MindTap Course List)

In September 2013, Tokyo Electric Power Company (Tepco) reported highly contaminated water leaking from a stora...

Understanding Management (MindTap Course List)

Compared with the situation before 1981, the marginal tax rates imposed on individuals and families with high i...

Macroeconomics: Private and Public Choice (MindTap Course List)

bartleby
  • Contact Research (Essays)
  • High School Textbooks
  • Literature Guides
  • Essay Help
  • Mobile App
    • © 2021 bartleby. All Rights Reserved.