Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for $25 per share, (b) earned net income of $20,600, and (c) paid dividends of $1 per share on the common stock outstanding at year-end.
Required:
Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
Fill in the blanks labeled (a) through (p).
Explanation of Solution
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.
Fill the missing information:
Company C | ||
Balance Sheet | ||
December 31 | ||
Particulars | 2019 | 2020 |
Current assets | (1)(d)$35,200 | $39,800 |
Long-term investments | $40,100 | (8)(o)$42,300 |
Property, plant, and equipment (net) | (2)(h) $153,000 | $180,000 |
Less: Accumulated depreciation | ($37,500) | ($48,600) |
Intangible assets | $19,100 | $18,600 |
Total assets | (e)$209,900 | (m)$232,100 |
Current liabilities | (3)(g)$17,300 | (9)(p)$20,000 |
Long-term liabilities | (4)(a)$34,600 | $33,100 |
Total liabilities | $51,900 | (10)(j)$53,100 |
Common stock, $10 par | (5)(b)$29,000 | (11)(i)$30,000 |
Additional paid-in capital | (6)(f)$37,700 | (12)(n)$39,200 |
Total contributed capital | $66,700 | (13)(l)$69,200 |
Retained earnings | $83,300 | (14)(k)$100,900 |
Accumulated other comprehensive income | $8,000 | $8,900 |
Total shareholders’ equity | (7)(c)$158,000 | $179,000 |
Total liabilities and shareholders’ equity | $209,900 | $232,100 |
Table (1)
Note:
The amount of total assets for missing information (e) for the year 2019 and (m) for the year 2020 is same as the amount of total liabilities and shareholders’ equity for the year 2019 ($209,900) and year 2020 ($232,100) since, total assets equals total of liabilities and shareholders’ equity.
Working notes:
Year 2019:
(1) Calculate the amount of current assets:
(2) Calculate the amount of property, plant and equipment:
(3) Calculate the amount of current liabilities:
(4) Calculate the amount of long-term liabilities:
(5) Calculate the amount of common stock:
(6) Calculate the amount of additional paid-in capital:
(7) Calculate the amount of total shareholders’ equity:
Year 2020:
(8) Calculate the amount of long-term investments:
(9) Calculate the amount of current liabilities:
(10) Calculate the amount of total liabilities:
(11) Calculate the amount of common stock:
(12) Calculate the amount of additional paid-in capital:
(13) Calculate the amount of total contributed capital:
(14) Calculate the amount of retained earnings:
(15) Calculate the value of additional shares issued:
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Chapter 4 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.arrow_forwardMonona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.arrow_forwardNet Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.arrow_forward
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