On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1. 2. 3. 4. 5. Issued 80,000 common shares at $14 per share on July 1, Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2022. At the declaration date, the fair value of the common shares was $21 per share Earned profit of $400,000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.

On January 1, 2021, Sheridan Incorporated had an unlimited number of common shares authorized, 230,000 issued, and the balance in the Common Shares account was $2.3 million. The company reported a balance in Retained Earnings on this date of $890,000 and accumulated other comprehensive income of $27,000. During the year, the following occurred: 1. 2. 3. 4. 5. Issued 80,000 common shares at $14 per share on July 1, Declared a 3-for-2 stock split on September 30 when the fair value was $18 per share. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2022. At the declaration date, the fair value of the common shares was $21 per share Earned profit of $400,000 for the year. Recognized a loss on equity investments of $45,000 before tax, which will be reported as other comprehensive income. The company's income tax rate is 25%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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