BC Company had 20,000 shares par value treasury shares that ere acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were acquired and immediately retired at P 26 each. These shares were originally issued at P 23. n June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is ed to record the treasury shares transaction. December 31,2019, what amount should ABC show in its notes to financial statements sa restriction of retained earnings as a result of its treasury share transactions? * G 120,000 10,000 480,000
Q: Green Corporation is authorized to issue 120,000 common shares and 80,000, $4 preferred shares. At…
A: Shareholder’s Equity: It can be referred to as one of the parts of the balance sheet other than the…
Q: J Corporation issued 400,000 ordinary shares when it began operations in 2019 and issued an…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: Dividend Declared & Paid: Dividends declared refers to dividends that have been approved by the…
Q: omestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: As mentioned in the question preference shareholders are cumulative in nature. Cumulative preference…
Q: In 2018, Broyles, Inc. reacquired 3,000 shares of its common stock at $55 per share. In 2019,…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: Macanas Company had 125,000 shares issued as of January 1, 2018, which includes 25,000 treasury…
A: Answer) Calculation of Number of shares issued Number of shares issued = Total number of shares…
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: Treasury stock represents the value of own shares that have been purchased by the entity.
Q: The following is a summary of all relevant transactions of LUNA INC. since it was organized in 2019.…
A: Shareholders equity is the total amount attributable to the shareholders of the company. It includes…
Q: On December 31, 2020, Dow Steel Corporation had 770,000 shares of common stock and 317,000 shares of…
A: Calculation of W. Avg Number of shares (For Basic EPS) Calculation No of shares…
Q: At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at…
A: The stockholders' equity refers to the amount that is attributable to the shareholders of the…
Q: On December 31, 2020, Dow Steel Corporation had 700,000 shares of common stock and 310,000 shares of…
A: Introduction: Earnings per share denotes the fraction of a company's profits that is available to…
Q: On December 31, 2020, Dow Steel Corporation had 780,000 shares of common stock and 318,000 shares of…
A: The weighted average number of shares is the average sum of shares purchased during the period.
Q: retained earnings?
A: Definition: Retained Earnings: It is the amount that is obtained after distribution of dividend to…
Q: Montrose Construction Ltd. had 64,000 common shares and 22,000 preferred shares outstanding on…
A: Earnings per share is one of the important calculation being made in business. It shows how much…
Q: ABS Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: First, calculate the diluted effect on stocks: Stock option dilluted effect=Share option…
Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: Coda Corporation was organized on January 1, 2019, with an authorization of 2,000,000 shares of $5…
A: Formula: Amount received on issue of shares = Number of shares issued x Issue price Multiplying…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: It is given that, preferred stock is cumulative in nature. if the preferred stock is cumulative in…
Q: Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000…
A: Organizations have the power to raise funds with different methods such as by issuing common stock,…
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Balance in ordinary shares before split=Number of shares×Par value=400,000×P25=P 10,000,000
Q: At December 31, 2021, Azores Corp. had 20,000 shares of P1 par value treasury shares that had been…
A: Given data, Shares repurchased =20,000 Acquisition price per share =P12 Therefore, Acquisition cost…
Q: ABC Company had 100,000 of P 15 par value ordinary shares on January 1,2019. During 2019, the…
A: The treasury share are the buy back shares of the company.
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Particulars Amount ($) Preferred Stock, $100 par value, 10000 authorized, 5000 issued and…
Q: Flexsteel acquired 1,000 shares of its $1 par value stock for $44 per share on April 4, 2019 and…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a…
A: Share premium on ordinary shares issued = No. of shares issued x (Issue price per share - par value…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: •…
A: Cash received for preferred in excess of par value of preferred shares will be credited to…
Q: Dakota Corporation had the following shareholders' equity account balances at December 31, 2018:…
A: Common stock- Individuals who own common stock have a claim on profits (dividends) and the ability…
Q: On January 1, 2021, marine company had 125,000 issued shares and 25,000 treasury shares. During the…
A: No. of shares issued means shares issued by the company including the shares purchased by the…
Q: Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter market. At…
A: Shareholders Equity section of balance sheet shows all total amount attributable to equity…
Q: Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: On January 1, 2020, Rama Company had 20,000 treasury shares of P100 par value that had been…
A: Treasury stocks are repurchased shares of the company. The firm can reissue these stocks at a…
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: difference in repurchase price and issue price are transferred to additional paid in…
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Diluted Weighted Average Shares is the number of shares used to measure Diluted EPS. This is used as…
Q: On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 307,000 shares of…
A: Basic EPS Numerator Net income $ 2,450,000 Less : Preferred div $ 76,000 Income…
Q: Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During…
A: Treasury stock: When a company repurchases its common stock issued earlier from the stock holders,…
Q: On December 31, 2020, Dow Steel Corporation had 740,000 shares of common stock and 314,000 shares of…
A: Dow's basic earnings per share Dow's diluted earnings per share
Q: T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019…
A: A journal entry is the first step in chronicling financial transactions in the books of business…
Q: On December 31, 2020, Dow Steel Corporation had 710,000 shares of common stock and 41,000 shares of…
A: Earnings per share = Net income available to Equity shareholders/weighted average number of shares
Q: TJH Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Tje shareholders' equity section represents the total equity belongings to shareholders.
Q: Edward Corporation is authorized to issue 100,000 shares of $1 par value common stock. During 2021,…
A: Treasury stock is a form of reserved stock that is sometimes used to collect money or pay for…
Q: GMA Co. had 900,000 ordinary shares issued and outstanding at December 31, 2019. On July 1, 2020 an…
A: Share dilution occurs when a business issues new stock, reducing a current shareholder's ownership…
Q: anuary 1, 2019, ABC Corporation had 125,000 shares of its $2 par value ordinary shares outstanding.…
A: Solution: Weighted-average number of shares outstanding are the number of outstanding share which…
Q: In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the…
A: Buyback of shares - it means when the company buybacks its own holdings that was earlier subscribed…
Q: As of December 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and…
A:
Q: ABC Corp organized on January 1, 2019, at which date it issued 200,000 shares of P10 par ordinary…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: n January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. uring the year,…
A: The shares issued includes the treasury stock shares but shares outstanding are decreased with the…
Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…
A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…
p45
Step by step
Solved in 2 steps
- 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.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?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.
- 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. 6.73Lyon 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.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?
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
- Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.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?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.