Mar. 1 Apr. 1 July 1 Sept. 1 Oct. 1 Issued 250,000 shares in exchange for land Acquired 200,000 shares of treasury stock Issued a 20% stock dividend Reissued 240,000 shares of treasury stock (adjusted for 20% stock dividend) Issued a 2-for-1 stock split Instructions (a) Determine the weighted average number of shares outstanding as of December 31, 2018. (b) Assume that Vermont Maple Corp. earned net income of $8,352,000 during 2018. In addition, it had 200,000 shares of 9%, $100 par value nonconvertible, cumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2017 or 2018. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a). (c) Assume the same facts as in part (b), except that the preferred stock was noncumulative. Compute earnings per share for 2018. (d) Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $500,000, net of $300,000 in income taxes. Compute earnings per share for 2018.
Q: Construct a cost-volume-profit chart indicating the break-even sales for last year. Verify your…
A: INCOME FROM LAST YEAR SALES Per Unit No.of Units Total Sales $200 2000 $400,000 Less :…
Q: Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During…
A: Income summary account is the one which is used while closing the temporary accounts like revenues…
Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of…
A: Absorption costing treat fixed manufacturing cost as product cost but variable costing includes only…
Q: Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: Kim paid her nanny $20,000 during 2021 to watch her three children, Finn (3). Rachel (5) and Caltlyn…
A: Dependent care credit: It implies to a tax credit that allows and assist a taxpayer in paying for…
Q: 1. Prepare all appropriate Journal entries related to the Investment during 2021. 2. What amount…
A: If a company purchases another company's shares with its own funds, the following rules apply: The…
Q: What is the term given for information that should NOT be taken from one source as the collectors of…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: Sunland Company owns a trade name that was purchased in an acquisition of Blossom Company. The trade…
A: The trade name is an intangible asset for the business, It's reported in the assets section of the…
Q: Governments often provide goods and services to citizens or other governmental units at a fee.…
A: The list of funds are enumerated to aid the people and other organisations which are facing scarcity…
Q: JOINT PRODUCTS: Machintosh Company produces two products from a common input. Common Input Question…
A: Split Off Point :— It is the separation point of joint products. Common cost is incurred for the…
Q: The following were selected from among the transactions completed by Babcock Company during November…
A: Preparing journal is the most important step in the accounting aspect. Every journal has double…
Q: Compute the use tax that Heliot owes to State H for the property purchased in S Pre credit use tax…
A: State H levies 6% use and sales tax. Sales Tax paid to other state can be claimed as credit while…
Q: Holt Enterprises recently paid a dividend, D0, of $1.75. It expects to have nonconstant growth of…
A: The process of determining the worth of a company's shares is referred to as the valuation of…
Q: excellence? a. The desire to establish congeniality b. The desire to stay ahead c.
A: Accounting System - An accounting system is a tool used by accountants to manage and keep track of…
Q: * Enter the opening balances in the ledger accounts as at Oct 1, Write "Balance" in the expla-…
A: Negative sign in balance column indicates credit balance and positve sign indicates debit balance…
Q: Jackson Company had the following ending inventory costs: Product ABU Units on Hand 10 50 35 Unit…
A: LCM is the lower of cost or market value. This rule is usually applied while determining the cost of…
Q: The minimum amount of gift cards received from the employer that must be reported on the employee's…
A: Form W-2 is required to be filled to report employees salary and wages along with any tax withheld.
Q: Ehrlich Corporation earned $360,000 during a period when it had an average of 100,000 shares of…
A: Introduction:- The following formula used as follows under:- Basic earnings per share = (Net income…
Q: What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a…
A: Nominal Rate of Return on a Perpetual Preferred Stock A perpetual preferred stock is a type of…
Q: Holding Artisans Inc. (HAI) operates a craft market which sells paintings, handmade dolls and…
A: The closing entries are prepared to close the temporary accounts of the business. The temporary…
Q: The Rink offers annual $150.memberships that entitle members to unlimited use of ice-skating…
A: There are a few things to consider when it comes to revenue and deferred revenue associated with…
Q: The practice of auditing firms to spread work throughout the year by carrying out as many auditing…
A: Audit is the process by which the auditors verify the financial statements of the company and makes…
Q: Stockholders' equity of Ernst Company consists of 93,000 shares of $5 par value, 9% cumulative…
A:
Q: Below are example of intangible asset, except a. Copyright b. Trademark c. Lease Agreement d. Cash
A: Intangible assets are nonphysical assets and it does not have physical substance. but the tangle…
Q: Which of the following audit techniques would most likely provide an auditor with the least…
A: Effective Internal control will satisfy company objectives. Internal controls will identify and…
Q: Tremaine would like to organize UTA as either an S Corporation or a C corporation in either form,…
A: Tax Tax is the term used to describe the requirement that any government agency must impose on a…
Q: Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem…
A: The question involves preparing journal entries for the club which is issuing coupons for its sale…
Q: Stark company has the following adjusted accounts with normal balances at its December 31 year-end.…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: [The following information applies to the questions displayed below.] Caro Manufacturing has two…
A: The question is based on the concept of Cost Accounting.
Q: Payment of salaries
A: An internal service fund
Q: uncollectable accounts recognized
A: The term Receivables refers to the amount of debts owed to a firm by its customers for goods or…
Q: How important do you think accounting information and financial statements are to stock pricing in…
A: Accounting information is very important now days and they are published from time to time by the…
Q: Solve 29-day billing cycle 4/17 Billing date Previous Balance $1,100 4/27…
A: The average daily balance is a common accounting method that calculates interest charges by…
Q: Mary Henderson invested $45,000 cash in the company in exchange for its common stock.
A: Common Stock - Common Stock is the shares issued to the public in exchange of Cash. This denotes…
Q: The following information applies to Emily for 2022. Her filing status is single. Salary Interest…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Prepare September's direct materials purchases budget for Your Pie Inc. YOUR PIE INC. Direct…
A: Introduction:- The direct materials purchase budget measures direct materials should be purchased in…
Q: Your grandfather likes to tell the story about how he started with 50 head of cattle on his ranch…
A: FUTURE VALUE Future value is the value of an asset at a specific date. The value of a current…
Q: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses…
A: Net operating income=Sales-Variable expenses+Fixed expenses
Q: What is the term used for information that should be collected from a source which can be verified,…
A: Bank accounts, management accounts, payrolls, bank statements, invoices, and receipts are some…
Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of…
A: Direct labour cost variance is the difference between the standard cost for actual production and…
Q: a. The company completed consulting work for a client and immediately collected $6,300 cash. b. The…
A: ACCOUNTING EQUATION The fundamental accounting equation, also Known as balance sheet equation.…
Q: 17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of…
A: Combining the assets, liabilities, and other financial components of two or more entities into one…
Q: What kinds of deductions are prohibited as a matter of public policy? Why might Congress deem it…
A: One definition of the public policy describes it as "a system of laws, regulatory measures, courses…
Q: In 2014, Mordica Co. issued 300,000 of its 500,000 authorized shares of $10 par value common stock…
A: Introduction: Journal entries were once made in separate journals for each business transaction and…
Q: The cash account of Morgana Co. showed a ledger balance of Php1,400,000 on June 30. The bank…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: a. Determine the value of the inventory at the lower of cost or market applied to each item in the…
A: a. Inventory at the Lower of Cost or Market Product Inventory Quality Cost Per unit in…
Q: Question 11 In 2021, Santana's tentative minimum tax is $24,500 and her regular tax liability is…
A: In case of multiple questions, we are allowed to solve only the first question. If you want other…
Q: down credit card 3. For Which credit card did you pay?, select 2100 VISA Credit Card 4. For How much…
A: Credit card is the facility given by bank to pay the expenses without having money in the bank…
Q: WCC Corporation has a $145,000 net operating loss carryover to 2022 from a previous year. Assume…
A: Net operating loss (NOL) is an excess of deductions (for expenses from the operation of a…
Q: pe of outputs produced by the management information system. a. Projections, query responses b.…
A: Accounting System - An accounting system is a tool used by accountants to manage and keep track of…
- On January 1, 2018, Vermont Maple Corp. had 2,650,000 shares of commons stock issued and outstanding. During 2018, it had the following transactions that affected the common stock account:
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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.Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?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.
- Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- 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)STOCK ISSUANCE (NONCASH ASSETS, SUBSCRIPTIONS, AND TREASURY STOCK) Brant Evans had the following stock transactions during the year: (a) Issued 6,000 shares of common stock with a 5 par value in exchange for real estate (land) with a fair market value of 33,500. (b) Issued 5,500 shares of common stock with a 5 par value and 7 fair market value in exchange for a building with an uncertain fair market value. (c) Received subscriptions for 11,000 shares of 5 par common stock for 58,000. (d) Received a payment of 29,000 on the stock subscription in transaction (c). (e) Received the balance in full for the stock subscription in transaction (c) and issued the stock. (f) Purchased 2,000 shares of its own 5 par common stock for 6 a share. (g) Sold 1,000 shares of the treasury stock in transaction (f) for 6.50 a share. (h) Sold 1,000 shares of the treasury stock in transaction (f) for 5.75 a share. Prepare general journal entries for these transactions, identifying each by letter.Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its preferred and common stock: Preferred stock, S30 par, 12% cumulative; 300,000 shares authorized; 150,000 shares issued and outstanding Common stock, $2 par; 2,500,000 shares authorized; 1,200,000 shares issued; 1,000,000 outstanding As of December 31, 2019, Lemon was 3 years in arrears on its dividends. During 2020, Lemon declared and paid dividends. As a result, the common stockholders received dividends of $0.45 per share. Required: What was the total amount of dividends declared and paid? What journal entry was made at the date of declaration?