On January 1, 2020, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $18. b. Par value is $5, and market price is $20.
Q: A.) Journalize the transactions and the closing entries for net income and dividends. (Credit…
A: Shareholders: Shareholders are the owners of the company having ownership in the stock of the…
Q: Stowe Company’s December 31, 2020, trial balance includes the following accounts: Investment in…
A: STOWE COMPANY Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Common stock…
Q: Bedard Corporation reported net income of $300,000 in 2020 and had 200,000 shares of common stock…
A: Formula to calculate diluted earnings per share (DEPS): DEPS = Net income attributable to common…
Q: Minnesota Manufacturing's balance sheet showed total common equity of $3,000,000 and 500,000 shares…
A: Book value per share can be calculated by dividing total shareholders equity at the end of the year…
Q: At the beginning of 2019, Taylor Corporation had the following stockholders’ equity balances in its…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: At December 31, 2020, Reid Company had 600,000 shares of common stock issued and outstanding,…
A:
Q: Flava Corporation reported a net income of $300,000 in 2020 and had 200,000 shares of common stock…
A: Diluted earnings per share: It can be defined as the company’s earnings per share, assuming all the…
Q: At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 1,000 million shares of…
A: Formula: Earnings per share = (Net Income - Preferred dividends) / No. of common shares outstanding…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: The treasury share are the shares that are repurchased by the company fron its own issued shares.
Q: Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares…
A: Earnings per share refer to the amount that is earned by the stockholders on every share held by…
Q: Metlock Corporation issued 108,000 shares of $18 par value, cumulative, 9% preferred stock on…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Graham, Inc. began 2020 with 25,000 common shares outstanding and issued a 20% stock dividend on…
A: Earnings per share of the company means all earnings available for each and every common…
Q: At December 31, 2020, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager…
A: Diluted earnings per share = Net Income /(Weighted average number of ordinary and dilutive…
Q: On January 1, 2020, Company D issued 6,000 shares of its $2 par Common Stock when the market price…
A: Common stock: Common stock is an equity ownership in organization. Common stockholders have a…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Shares are used to divide the capital of the company into small parts, so that it is will be…
Q: oOn January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A log book is used to record a business transaction in an organization's accounting records. A…
Q: On January 1, 2020, Ivanhoe Corporation had $1,470,000 of common stock outstanding that was issued…
A: On January 1,2020 Ivanhoe corporation had 1470000 of common stock Calculating with option A) Par…
Q: On January 1, 2020, Ivanhoe Corporation had the following stockholders' equity accounts. Common…
A: Stockholders' equity is the amount of assets remaining in a business after all liabilities have…
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: On March 15, 2018, Bank of America issued 94,000 shares of 5.875% Fixed-to-Floating Rate…
A: Dividend is the term which is described as the distribution of the earnings of the firm to its…
Q: On January 1, 2022, Splish Brothers Inc. had $1,320,000 of common stock outstanding that was issued…
A: Definition: Dividends: Dividends are the rewards to the stockholders for investing their money in…
Q: On January 1, 2020, Ivanhoe Corporation had the following stockholders' equity accounts. Common…
A: Balance Sheet is the statement that shows all the details about the assets, liabilities and…
Q: Accounting, Analysis, and Principles On January 1, 2020, Agassi Corporation had the following…
A: The following transactions are journalized to evaluate calculations in the records of Agassi…
Q: On January 1, 2020, Ivanhoe Corporation had the following stockholders' equity accounts. Common…
A: Balance Sheet is the statement that shows all the details about the assets, liabilities and…
Q: At the end of 2019, Haley Corporation had the following equity accounts and balances: Common stock,…
A:
Q: Kingdom Corporation has the following: Preferred stock, $10 par value, 9%, 50,000 shares issued…
A: Equity shares provide the ownership of the company and shareholders are paid only after the dues…
Q: On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for…
A: The question is related to repurchase of treasury stock under cost method. In the given question the…
Q: On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par…
A: Stock dividend is the issue of dividend in the form of shares. In this type of dividend, the entity…
Q: At the beginning of 2021, Hamilton Company had retained earnings of $320,000. During the year…
A: Retained earnings represent the accumulated funds available to the company out of which the dividend…
Q: On January 1, 2020, Ivanhoe Corporation had the following stockholders' equity accounts. Common…
A: stockholders' equity is one of the three main components of a corporation's balance sheet. Balance…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Treasury Stock The purpose of issue of treasury stock which describes as the repurchase of own stock…
Q: Bramble Inc. began operations in January 2018 and reported the following results for each of its 3…
A: Requirement 1:
Q: Sendee Company's retained earnings on December 31, 2020 was $2,150,000 and its shareholders' equity…
A: NET INCOME = $250,000 LESS : CASH DIVIDEND = $75,000 1. BALANCE INCOME TRANSFERRED TO RETAINED…
Q: On January 1, 2020, a company issued 10-year, $330,000 face value, 7% bonds, at par. Each $1,000…
A: Potential common stock = (Face value of bonds / par value per bond) x convertible ratio = ($330,000…
Q: Marin Company’s net income for 2020 is $691,000, and 91,000 shares of common stock were issued and…
A: Calculation of number of free shares issued under case (a) : Particulars Amount Proceeds of…
Q: On January 1, 2019, Concord Corporation had $1,470,000 of common stock outstanding that was issued…
A: Dividend means an amount paid by a corporation/company to its stockholders, out of profit. Dividend…
Q: On December 31, 2019, Shoreline Hotel Inc.., reported its shareholders' equity as follows: Common…
A: Retained Earnings = 120,000 shares x 10% x $22 =. $264,000 Retained Earnings would be debited by…
Q: After closing the books at month end on June 30, 2020, Slayter Corporation's shareholders' equity…
A: Stock dividend is the distribution of dividend in the form of shares of the company. Stock split…
Q: Ale Corporation had net income of $2,040,000 and paid dividends to common stockholders of $400,000…
A: Earnings per share = Net income/Weighted average of shares outstanding Price-earnings ratio = Market…
Q: On January 1, 2020, Geffrey Corporation had the following stockholders’ equity accounts. Prepare…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Novak Company’s net income for 2020 is $594,000, and 91,000 shares of common stock were issued and…
A: Diluted Earning Per Share: If all convertible securities were converted, the company's profits per…
Q: On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following…
A: Stock dividend refers to the shares that are distributed by the company as a dividend to the…
Q: At the beginning of the year, ABC Company had a retained earnings balance of $100,000. During the…
A: Retained earnings are that portion of net income that is not distributed to the shareholders by the…
Q: On January 1, 2010, Deweese Corporation had $1,000,000 of common stock outstanding that was issued…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On January 1, 2020, Ivanhoe Corporation had the following stockholders' equity accounts. Common…
A: Partial Balance Sheet as of March 31 Stockholder's Equity Paid in Capital Capital Stock:…
Q: During the year 2019, Howard industries reported net income of P1,000,000. The company declared and…
A: Earnings per share = Earnings after payment of preferred dividends Weighted Number of common shares…
Q: On November 1, 2020, Skysong, Inc’s stockholders’ equity section is as follows: Common stock, $10…
A: When a stock dividend is being issued, it will reduce retained earnings of the business and common…
Q: On January 1 2022, cullumber had $1,000000 of common stock outstanding that was issued at par…
A: Stock dividend is one of dividend type in which company does not make any cash dividend payment…
Q: Salalah Mills Company is having 10,000 stocks of 15% OMR 1 par value non-cumulative, Irredeemable…
A: Preference dividend payable = No. of preferred share outstanding x Par value per share x rate of…
On January 1, 2020, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $18. b. Par value is $5, and market price is $20.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Monona 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.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
