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(1)
The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders.
To describe: The purpose of statement of shareholder’s equity.
(2)
To explain: The accounting treatment for Incorporation C’s share buyback.
(3)
To reconstruct: The
(4)
To describe: Comprehensive income and other comprehensive income.
(5)
To describe: The cause for the change in Incorporation C’s comprehensive income for the given period.
To show: The amount which is reported by Incorporation C as accumulated other comprehensive loss in its January 23, 2016
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Chapter 18 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- Problem 18-5 (Static) Shareholders' equity transactions; statement of shareholders' equity [LO18-6,18- 7,18-8] Listed below are the transactions that affected the shareholders' equity of Branch-Rickle Corporation during the period 2021=2023. At December 31, 2020, the corporation's accounts included: 57:28 Common stock, 105 million shares at $1 par Paid-in capital-excess of par Retained earnings sin thousands) $105,000 630,000 970,000 at nces a. November 1, 2021, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December b On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch Rickie was holding as an investment. The bonds had a fair value of $1.6 million, but were purchased two years previously for $1.3 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The…arrow_forwardNAME: SCORE: SECTION: PROFESSOR: Problem #16 Shareholders' Equity Section The shareholders' equity T-accounts of Geron Greeting Cards, Inc. for the year ended Dec. 31, 2019, are as follows: Ordinary Shares Jan. 1 Balance 3,000,000 Mar. 7 Isued 1,350,000 4,350,000 27,000 shares Dec. 31 Balance Share Premium-Ordinary Jan. 1 Balance 480,000 Mar. 7 Isued 27,000 shares 324,000 Dec. 31 Balance 804,000 Treasury Stock Aug. 7 Purchased 4,500 shares 216,000 Retained Earnings Mar. 31 Dividends 37,500 Jan. 1 Balance 5,220,000 June 30 Dividends 37,500 Dec. 31 Closing Sept. 30 Dec. 31 Dividends Dividends 37,500 (profit) Dec. 31 Balance 765,000 37,500 5,835,000 Required: Prepare the shareholders' equity section for the year ended Dec. 31, 2019.arrow_forwardq6- You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $13.80 and that the value of dividends paid over the past year was $1.41. You paid $8.47 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg? a. 62.93% b. 10.22% c. 79.57% d. 16.65%arrow_forward
- 1.What is the EPS for 2016?a.1.82b.1.30c.1.63d.1.47 2.What is the weighted number of outstanding ordinary shares for 2017?a.310.5Mb.291.87Mc.270Md.285.78Marrow_forwardProblem 2 The shareholders' equity of Tony Corporation revealed the following on June 30, 2018: Preference share, P100 par vale Preference share premium Ordinary share, P15 par value Ordinary share premium Ordinary share subscribed Retained earnings Notes payable Subscriptions receivable - ordinary P230,000 80,500 525,000 275,000 5,000 190,000 400,000 40,000 28. How much is the legal capital? 29. Using the data in problem #2, how much is the additional paid in capital? 30. Using the data in problem #2, how much is the total shareholders' equity? Problem 3 A corporation declared a 40% share dividend on its 60,000 shares of P20 par ordinary shares on a day when the market price is P50. 31. How much was debited to retained earnings on the date of declaration? 32. Using information in problem #3, what is the peso dividend per ordinary share? 33. Using information if problem #3 and assuming the share capital dividend declared is 4/40, what is the share premium from stock dividends?arrow_forwardProblem #30 Preparation of the Shareholders' Equity Section of a Statement of Financial Position Preparation of the Shareholders' Equity Section of a Statement of Financial Position Corporation on June 30, 2019. Each account has a normal balance. The accounts listed below were taken from the general ledger of the Liggayu corporation on June 30, 2019. Each account has a normal balance. Ordinary Shares P1,300,000 Share Premium- P 325,000 Preference Subscribed Ordinary Shares Ordinary Shares Dividend 100,000 Share Premium-Treasury 17,500 62,500 Donated Capital Distributable 70,000 Treasury Stock-Ordinary (3,000 shares) Share Premium-Ordinary Retained Earnings: 117,500 2,075,000 Unappropriated Appropriated for Plant Expansion 1,870,000 7% Preference Shares 250,000 125,000 7% Preference Shares- Subscribed 25,000 Additional Information: a. Preference share has a par value of P50 per share. Liggayu was authorized to issue 10,000 shares. The preference share is cumulative and participating. b.…arrow_forward
- Problem 6 (Adapted)Anna company presented the following account balances in the shareholders’ equity section for the year ended December 31, 2018: Preference share capital, 12% P50 par, P3,000,000, Ordinary share capital, P100 par, P6,000,000 and deficit, (P1,350,000). No dividends have been paid on the preference share since 2016. Determine the book value per share under the following conditions:a. Preference share is preferred as to assetsb. Preference share is preferred as to dividendarrow_forwardNote 25, “Share Repurchase,” provides the information we need to reconstruct thejournal entry that summarizes Target’s share repurchases in the year endedJanuary 30, 2016. Provide that entry. Does Target account for share repurchases astreasury stock or retired shares? Explain.arrow_forwardOn December 31, 2019, an entity reported the following equity items: 8% cumulative preference shares (150,000 issued, P20 par) Ordinary share capital (2,000,000 issued, P5 par) Share Premium- Preference + Share Premium -Ordinary Retained Earnings The following transactions affected equity during 2020: Jan 1. Apr 1 Jun 1 Jul 1 Oct 1 Dec 31 was paid during 2018 P3,000,000 10,000,000 200,000 27,000,000 4,500,000 30,000 preference shares issued at P22 per share 50,000 ordinary shares issued at P20 per share 2-for-1 share split on the ordinary share 30,000 ordinary treasury shares were reacquired at P10 per share 10,000 treasury shares were re-issued at P11 per share Net-income for the year is P9,000,000. The latest preference dividendarrow_forward
- Assignment Content 1. Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is listed below. Show your calculations. 2. In 100 words, or fewer, explain why investors should be more interested in the the Diluted EPS number than the Basic EPS number. Company X information for Diluted Shares calculations for period 201X: Earnings for Year 201X - $20 million Average Basic shares outstanding for Company X in 201X – 10 million Average Stock Price for year 201X - $6.00 Warrants to purchase common shares: - Warrants A to purchase 2 million shares ex @ $2.00 - Warrants B to purchase 3 million shares ex @ $5.00. Assume the A and B Warrants are the only additional securities outstanding (besides the basic shares) for Company X in 201X. Hint: Carefully Review PowerPoint lecture slides 7 - 12, Text pages 245 -246, and the Podcast. Also, there is nothing wrong with looking up other Diluted EPS definitions online.arrow_forwardUnanswered You Answered Correct Answer Question 16 A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 270, find the # of outstanding shares remaining after it repurchases 370 worth of shares: (round your answer to the nearest 0.01) 186.75 margin of error +/- 0.2arrow_forwardting Standards Sec-1 with B Shivakumar for Sem II 2021 C021-3/ Topic 3/ Quiz 2 Redemption of preference shares by a company is classified under investing activities of its cash flow statement Select one: of O True O False stion Next page pagearrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
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