On January 1, 2024, Accustart Corporation had 84,000 common shares, recorded at $659,400, and retained earnings of $1 million During the year, the following transactions occurred: Apr. 2 Issued 5,000 common shares at $20 per share. June 15 Aug. 21 Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10. Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $22 a share on August 21, $24 on September 5, and $27 on September 20. Issued 2,900 common shares at $24 per share. Nov. 1 Dec. 20 Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on Januar 10.
Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…
A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…
Q: On January 1, 2027, the stockholders' equity section of Sandhill Corporation shows common stock ($5…
A: Treasury stocks are the common stocks that the company repurchases from the market at market value.…
Q: How Meezan bank ( pakistan ) using : 1) Housing financing. 2) Car finance. 3)Business finance.
A: Islamic banking is a system of banking that operates in accordance with the principles of Islamic…
Q: Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid…
A: Cost of assets: As per the generally accepted accounting principles, the cost of assets includes all…
Q: In the current year, Ms. Patel is provided with a vehicle leased by her employer, Everex Ltd. The…
A: Standby ChargeStandby charge benefits recognizes that the employee is receiving a benefit by having…
Q: While reviewing last year's performance outcomes for comparison to this year, Jennifer finds several…
A: Profitability ratios provide insights into different aspects of a company's profitability. They can…
Q: In 2023, Adam Sandler invested $75,000 for a 40% interest in a partnership conducting a passive…
A: In a partnership engaged in a passive activity, the liability of a partner is generally limited to…
Q: Calculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances…
A: Flexible budget is prepared for various levels within the relevant range. In Flexible budget…
Q: Condensed data from the statement of income for Cato Corporation follow: (a) Using vertical…
A: Vertical Analysis Is Also Known As Common-Size Analysis, Invloves Expressing Each Line Item On a…
Q: (b) Assume that Stellar decides to capitalize the following components of the computer system:…
A: Asset is something which is owned by the company.Computer equipment is a fixed or non-current asset…
Q: What is the most likely cause of an increase in business's gross margin?
A: An increase in a business's gross margin is typically attributed to factors that positively impact…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: LIMITING FACTOR Contribution margin is difference between selling price and variable cost.Limiting…
Q: Mickey's Boats will produce a new line of speed boats. It has a choice of larger production facility…
A: Operating profit is the profit earned through core business operations. While calculating operating…
Q: Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial…
A: Future value is the maturity value of an investment done today at a given rate of interest for a…
Q: Division Queensland $928,000 $ 580,000 $ 74,240 $ 243,000 Required 1 Required 2 New South Wales $…
A: MARGIN Margin is the Ratio Between Net Operating Income & Net Sales.Formula = (Net operating…
Q: Using the information below, calculate the individual income tax liability. (Use the following…
A: Income tax is a type of tax that governments impose on individuals and entities based on their…
Q: California Circuits Company (3C) manufactures a variety of components. Its Valley plant specializes…
A: Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…
Q: Measures of liquidity, solvency, and profitability The comparative financial statements of…
A: Working Capital is the difference between the total current assets and the total current…
Q: From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120,…
A: The decision to make or buy a product is to be taken by the manager by comparing the costs incurred…
Q: Lamphere Lawn Care provides lawn and gardening services. The price of the service is fixed at a flat…
A: Selling price per unit: It is the price at which a unit of product is sold in the market.Variable…
Q: quired information oblem 11-56 (LO 11-6) (Algo) he following information applies to the questions…
A: A gain occurs if the current price of something is higher than the original purchase price. It may…
Q: The bank statement lists a deposit of $675 which correctly reflects that cash deposit and the…
A: The bank reconciliation is a process of comparing the company's records (book balance) with the bank…
Q: Statement of stockholders' equity The stockholders' equity T accounts of I-Cards Inc. for the year…
A: Statement of stockholders' equity is one of the financial statements that shows change in amount of…
Q: Presented here is information for Sheridan Company. Income tax expense Casualty loss plo of land…
A: Income statement is one of the financial statements that shows profitability, total revenue and…
Q: Compute payroll K. Mello Company has three employees-a consultant, a computer programmer, and an…
A: Gross pay is employees' earnings before any deductions like taxes, benefits and other payroll…
Q: Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and…
A: When a transfer is made from one division of the entity to another division of the entity then the…
Q: Calculate asset turnover. (Round
A: The asset turnover ratio measures the efficiency of a company's assets in generating revenue
Q: OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20%…
A: Lets understand the basics.Management prepare budget in order to estimate future profit and loss…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: The discontinuation of the department decreases the expenses with avoidable fixed costs. The income…
Q: Saved Carly's Clips charges for their grooming services based on the following: Direct labor rate…
A: Total manufacturing cost is the total cost incurred in the manufacturing of product during the…
Q: 12-7 A firm's annual revenues are $850,000. Its expenses for the year are $615,000, and it claims…
A: TaxIt is the amount which one pays to the government of the country as per prescribed rates or slab…
Q: Trial Balance is prepared to check accuracy of A. Ledger account balances B.Balance sheet balances…
A: Trial balance is the summary of all ledger accounts which is prepared after posting journal entries…
Q: Profitability ratios The following selected data were taken from the financial statements December…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…
A: It is the method of amortization of bonds that determines the interest expense for each year by…
Q: Question 3 of 10 View Policies Show Attempt History Current Attempt in Progress 1. 2. On December…
A: Capitalised costs means costs that are incurred to increase the efficiency and effectiveness of the…
Q: On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc.…
A: In a joint venture, the rewards and risks are shared. Each participant contributes resources, and…
Q: Your client has a real estate asset used in his business. He exchanges it for a like-kind real…
A: In a like-kind exchange under Section 1031 of the Internal Revenue Code, when real estate is…
Q: Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2024 with three…
A: Remeasurement gains and losses are typically recorded under net income, whereas foreign exchange…
Q: The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense…
A: Income Statement is a financial assertion that indicates the Income and Expenditures of the…
Q: A manufacturer has a monthly fixed cost of $ 100,000 and a production cost of $ 22 for each unit…
A: Break-Even PointBreak-even point is a point at which there is no profit no loss. At break-even point…
Q: terials por (3 pounds @ $2) (0.25 hours @ $32) $6 8 erhead is applied based on direct labor-hours.…
A: Actual Sale units =Budgeted Sale units + (Sale activity variance/Budgeted Sale price per…
Q: The following information has been taken from the perpetual inventory system of Elite Manufacturing…
A: Ending materials inventory = Beginning materials inventory + Materials purchased - Materials…
Q: Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable.…
A: A journal entry is a documentation of a business's financial activities kept in its accounting…
Q: ACCOUNTS PAYABLE LEDGER ACCOUNT-BAILEY COMPANY Suarez, Incorporated, $2,800 Suarez, Incorporated…
A: Merchandising businesses:Merchandising companies which buy goods from suppliers, or manufacturers,…
Q: a. Sarah used the home as her principal residence through December 31, 2019. She used the home as a…
A: Capital gains signify the profits earned from selling assets like real estate, stocks, or…
Q: Chad Funk is a hair stylist who opened a business selling hair products. He imports products from…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Cloudy Company had the following historical collection pattern for its credit sales: 70% collected…
A: The credit sales are the sales from which cash is not collected yet. The account receivables…
Q: margin es:
A: Segment margin is the profit or loss produced by each component of the businsesss. It considers only…
Q: Wildhorse Co. issued $6,720,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest…
A: The bond amortization table is prepared to show how the bond is repaid. It indicates the cash…
Step by step
Solved in 3 steps
- 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 37 5. The bonds are classified as a held-to-maturity 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 issue d 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 (I). 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 h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [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 in come statement for the year ended December 31, 201 6, 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, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.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.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
- Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?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.Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
- CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio Company completed the following transactions: Apr. 15 Declared a semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of 50 par preferred stock and 70,000 shares of 1 par common stock are outstanding. May 10 Paid the cash dividends. Oct. 15 Declared semiannual dividend of 0.65 per share on preferred stock and 0.45 per share on common stock to shareholders of record on November 5, payable on November 20. Nov. 20 Paid the cash dividends. 22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at 15 per share. Dec. 16 Issued certificates for common stock dividend. 20 Board of directors declared a two-for-one common stock split. REQUIRED Prepare journal entries for the transactions.The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.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?
- Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.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. 6.73Selected 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)