help me Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments incommon stock during 2024.March 1 Purchases 1,600 shares (10%) of Power Drive Corporation's common stock for $48 per share.July 1 Receives a cash dividend of $1.70 per share.December 31 The fair value of Power Drive Corporation's common stock is $61 per share.On February 1, 2025 (the following year), Gator Shoes sells 400 shares of Power Drive Corporation's common stock for $66 per share.Required:1. How will each of these transactions in 2024, including an adjustment on December 31 for the investment's fair value, affect thefinancial statements?2. How will the sale on February 1, 2025, affect the financial statements?Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 1CAssetsReq 2Purchases 1,600 shares (10%) of Power Drive Corporation's common stock for $48 per share.Note: Amounts to be deducted should be indicated with a minus sign.Balance SheetLiabilitiesStockholders' EquityRetained EarningsCommon Stock< Req 1ARevenues & GainsReq 1B >Income StatementExpenses & LossesNet Income Req 1AShow Transcribed TextReq 1AReceives a cash dividend of $1.70 per share.Note: Amounts to be deducted should be indicated with a minus sign.Balance SheetReg 1BShow Transcribed TextReg 1AAssetsReq 18AssetsReg 1CReq 18The fair value of Power Drive Corporation's common stock is $61 per share.Note: Amounts to be deducted should be indicated with a minus sign.Req 1CAssetsReg 2Req 1CReq 2LiabilitiesReq 2Balance SheetLiabilitiesGator Shoes sells 400 shares of Power Drive Corporation's common stock for $66 per share.Note: Amounts to be deducted should be indicated with a minus sign.Balance SheetLiabilitiesStockholders' EquityRetained EarningsCommon StockCommon StockStockholders' EquityRetained EarningsRevenues & GainsReq 2 >Revenues & GainsReq 2 >Income StatementExpenses & LossesIncome Statement.Income StatementNet IncomeExpenses & LossesExpenses & LossesNet IncomeNet Income

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Answered: Gator Shoes, Incorporated, manufactures…

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 9P

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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.
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?
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.
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.
In January 2022, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Muninger common stock for $30,000. Mar. 1 Purchased 800 shares of Tatman common stock for $20,000. Apr. 1 Purchased 60 of $1,160,7% Yoakem bonds for $69,600. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.70 per share on the Muninger common stock. Aug. 1 Sold 200 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $67,900. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Sheridan Company provide less than a 20% ownership interest.
In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred. Feb. 1 Purchased 1,100 shares of NJF common shares for $48,400. Mar. 1 Purchased 500 shares of SEK common shares for $20,000. Apr. 1 Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the NJF common shares. Aug. 1 Sold 180 shares of NJF common shares at $39.00 per share. Sept. 1 Received $2 per share cash dividend on the SEK common shares. Oct. 1 Received the semi-annual interest on the CRT bonds. Oct. 1 Sold the CRT bonds for $79,240. At December 31, Handley’s fiscal year end, the fair values of the NJF and SEK common shares were $38 and $29 per share, respectively. Record the above…
Bramble Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in 2023. Bramble intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the investments using the FV-NI model. This is the first year in which Bramble invested in equity securities: 1. 2. On March 20, purchased 4,500 shares of Wu Inc. common shares at $27 per share plus commission of $480. On August 15, purchased 3,200 shares of Xi Inc. common shares at $23 per share plus commission of $420. On June 30, Bramble sold 2,700 shares of Wu Inc. at $29 less commission of $600. The December 31, 2023 market value of the Wu shares was $30 and of the Xi shares was $22. (f) (c) Your answer is correct. Prepare the adjusting entry needed at December 31, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
Southeast Bank invests in equity securities and prepares quarterly financial statements. At the beginning of the fourth quarter of 2019, the bank held as an investment in equity securities 220 shares of Eglan Company common stock that originally cost $5,940. At that time, these securities had a fair value of $5,720. During the fourth quarter, the bank engaged in the following transactions: Oct. 26 Purchased 340 shares of Farrell Company common stock for $34 per share. Nov. 26 Sold 220 shares of Eglan common stock for $25 per share. Dec. 10 Purchased 390 shares of Gray Company common stock for $43 per share. On December 31, 2019, the quoted market prices of the shares were as follows: Eglan Company, $56 per share; Farrell Company, $38 per share; and Gray Company, $42 per share. Required: 1. Prepare journal entries to record the preceding information for the fourth quarter. 2. Show what the bank reports on its fourth quarter 2019 income statement for these equity…
During 2021, Sam Harris purchased 50 shares of common stock issued by Atlanta Carpet Mills for $6800 including commission. Later In the same year, Sam sold the shares for $7200 after commission. Calculate the following. (Round all answers to two decimal places.) $1 1. Profit on this stock transaction: 2. Percentage return on investment: Parentheses S
During 2021, Tom Sanchez purchased 200 shares of common stock issued by Tri State Manufacturing for $3400 including commission. Later in the same year, Tom sold the shares for $3800 after commission. Calculate the following. (Round all answers to two decimal places.) 1. Profit on this stock transaction: Parentheses 2. Percentage return on investment: % %4
On August 15, 2021, EasyMoney, Inc.s Board of Directors meets. and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration > Date of Record D Date of Payment $1.25 August 15, 2021 Septembe5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. > Cash D Dividends Payable > Retained Eamings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Eamings account is $625,000. ording Dividends uirement 1 August 15 Dividend declaration entry Date Account Hame Debir Credi B. Alter posting the abovs

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