ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Textbook Question
Chapter 9, Problem 9.12E
Subsidiary Stock Dividend
Stake Company reported the following summarized balance sheet data as of December 31, 20X2:
Stake issues 4.000 additional shares of its $10 par value stock to its shareholders as a stock dividend on April 20, 20X3. The mat1et price of Stake’s shares at the time of the stock dividend is $40. Stake reports net income of $25,000 and pays a $10,000 cash dividend in 20X3. Pole Company acquired 70 percent of Stake’s common shares at book value on January 1, 20X1. At that date, the fair value of the noncontrolling interest was equal to 30 percent of Stake’s book value. Pole uses the equity method in accounting for its investment in Stake.
Required
- Give the
journal entries recorded by Stake and Pole at the time the stock dividend is declared and distributed. - Give the worksheet consolidation entries needed to prepare consolidated financial statements for 20X3.
- Give the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1, 20X4.
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DDD Company had the following ordinary share transactions for the current year:
January 1
Beginning balance, 120,000 shares, P50 par
June 1
Issued 12,000 shares at P60 per share
September 30
Purchased 24,000 shares at P55 per share to be held as treasury
The entity reported net income of P3,630,000, after an expropriation loss of P605,000 for the current year.
Questions:
1. Compute for the average shares outstanding.
2. Compute for the basic earnings per share.
During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net
income through December 31, 20x1 was P102,500.
On July 3, 20x2, the entity issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend
was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October
23, 20x2. The market value if the ordinary shares was P11 per share on the declaration date. The entity's
net income for the year ended December 31 ,20x2 was P220,000.
During 20x3, the entity had the following transactions:
1. In February, reacquired 9,000 of its ordinary shares for P9 per share. The entity uses the cost method
to account for treasury shares.
2. In June, the entity sold 4,500 of its treasury shares for P13 per share.
3. In September, each shareholder was issued for each share held one (1) right to purchase two (2)
additional ordinary shares for P13 per share. The rights expire on December 31, 20x3.
4. In October, 75,000…
Prepare the journal entry to record Rony Company's issuance of 35,000 shares of its common stock assuming the share have a : a. $4par value and sell for $16 cash per share b. S4 stated value and sell for $16 per share.
Chapter 9 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - Prob. 9.11QCh. 9 - Prob. 9.12QCh. 9 - Prob. 9.13QCh. 9 - Prob. 9.14QCh. 9 - Prob. 9.15QCh. 9 - Prob. 9.16QCh. 9 - Prob. 9.1CCh. 9 - Prob. 9.2CCh. 9 - Prob. 9.3CCh. 9 - Prob. 9.4CCh. 9 - Prob. 9.5CCh. 9 - Prob. 9.1.1ECh. 9 - Prob. 9.1.2ECh. 9 - Prob. 9.1.3ECh. 9 - Prob. 9.1.4ECh. 9 - Prob. 9.2.1ECh. 9 - Prob. 9.2.2ECh. 9 - Prob. 9.2.3ECh. 9 - Prob. 9.2.4ECh. 9 - Prob. 9.2.5ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Subsidiary Stock Dividend Stake Company reported...Ch. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17.1PCh. 9 - Prob. 9.17.2PCh. 9 - Prob. 9.17.3PCh. 9 - Prob. 9.17.4PCh. 9 - Prob. 9.17.5PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26PCh. 9 - Prob. 9.27P
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