8. Prepare or provide what is require of the problem below Sand Company provided the following data at currentyear-end:Preference share capital, P100 par, 50,000 sharesShare premium – PSOrdinary share capital, P50 par, 100,000 sharesShare premium – ordinary shareRetained earnings5,000,000500,0005,000,0001,000,0002,000,000Required:1. Prepare journal entry assuming that 5,000 preferenceshares are converted:Preference shares are convertible into ordinaryshares on a share-for-share basis.а.b. Each preference share is convertible into 4 ordinaryshares.2. Prepare journal entry assuming 5,000 preference sharesare callable and called in for payment at:а.120b.80

A Journal entry is a primary entry that records the financial transactions initially. The…

Answered: Sand Company provided the following…

Business

Accounting

Sand Company provided the following data at current year-end:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

See similar textbooks

Related questions

Q: Consider an annual 4 year coupon bond paying a coupon rate of 5%. If it is 1000 par and the YTM= .04…

A: Bond is a fixed interest bearing instrument that is issued by the company for funds and has a…

Q: Inventories Office Supplies Prepaid Insurance Land Building Machinery & Equipment Furniture and…

A: Introduction: A balance sheet is a statement of a person's or company's financial position. The…

Q: Part S51 is used in one of Haberkorn Corporation's products. The company makes 12,000 units of this…

A: General company overheads (other than avoidable general overhead cost of $ 17,000) is a sunk cost…

Q: Vhat is the correct amount of inventory?

A: amount of inventory = FG + cost + goods in process +material + factory supplies

Q: The Rollins Company has office employees and shipping employees. A summary of their earnings and…

A: Payroll Accounting: Accounting for payroll is a method of keeping track of the costs that are…

Q: Bonita Products desires to set atarget price for its newest product. Information for a budgeted…

A: Cost-plus pricing is a pricing method in which the price will be determined based on all costs and…

Q: the pi "he CAPI he Gord The

Q: Use the following selected information for Jim Beam Company For the year ended 31st December 2020…

A: Factory overhead is indirect labor and indirect cost involved in operating manufacturing business.…

Q: Budgeting Inventories For each independent situation below, determine the missing amounts:

A: In this question, we have to find out the budgeting inventories where we can find available…

Q: You have the following information for Concard Inc. Concord Inc uses the periodic mathod…

A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first. 2. LIFO Method - Under…

Q: In the long-term liabilities section of its balance sheet at December 31, 2016, Naruto Company…

A: Non-Current portion of liability means the amount of obligation which will be settled after a year.

Q: On January 1, year 1, P Company sold a machine for P900,000 to S Company, its wholly owned…

Q: 21. if the direct method of allocation is used, how much of the equipment maintenance costs would be…

A: The overhead rate is calculated with the help of following formula Overhead Rate = Manufacturing…

Q: The following information is available for Marston Limited. The balance in the bank account of the…

A: Cash flow statement is made to reconcile the cash balance and to determine the activities where cash…

Q: PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp.…

A: The question is related to Marginal Costing. The profit will be calculated with the help of…

Q: the taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered…

A: Rent expense: Rent expense is an expense account that keeps an update of the cost of renting a…

Q: 1.) How much is adjusted Interest Expense on December 31, 2021?

A: An adjusting entry is an entry made to assign the right amount of revenue and expenses to each…

Q: 4. The following investment portfolio of equity securities (all acquired during 2019) accounted for…

Q: Sure Ako Corporation reported pretax income of P4,500,000 for the year ended December 31, 2022. The…

A: Taxable income can be computed as per the following Pretax Income…

Q: the weighted average number of ordinary shares outstanding?

A: Date Particulars Shares Weights Weighted average 1 January Beginning ordinary shares 480,000…

Q: If the ending inventory is valued at $80, what inventory cost flow assumption was usec O A. Average…

A: Introduction:- Inventory valuation methods used find out amount of value unsold inventory stock at…

Q: On December 31, 2021, ORANGE Company owned two assets as follows: Equipment P 100,000 95,000…

A: An impairment test for asset is required when there are indication that any impairment loss may have…

Q: Kindly explain and give an example of Capital Gains Tax

A: Introduction:- The capital gains tax is a federal tax. It is charged on profit made from selling…

Q: X purchased a secondhand machinery on 1-2-2018 for Ro.50,000 paid Ro.11,000 for its overhauling and…

A: Depreciation is a costing technique that allocates the cost of a tangible or physical asset's useful…

Q: Assume that in a maintenance organization we have the following data: Total number of annual hours =…

A: Maintenance Activity:Maintenance operations include partial or total overhauls at defined times, oil…

Q: QUESTION 25 How long must a capital asset be held to qualify for long term treatment? O A. Six…

A: As per IRS An capital asset is qualified for short term or long-term treatment on basis of time…

Q: 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-Disc Cost of Goods Sold…

A: The cost of goods sold is calculated as difference between total cost of goods available for sale…

Q: he information on the defined benefit plan is provided in the picture. a) What is the net defined…

A: Following table will be prepared for calculation of required information: Pension Plan…

Q: Total sales amounted to ( WITH SOLUTION)

A: The sales are calculated as the sum of the cost of goods sold and gross profit.In the sales revenue…

Q: The Boone Manufacturing had worked on two jobs, Job 101 and Job 102 last year. estimated…

A: Given that, Estimated fixed overhead = P30,000 Estimated variable overhead = P5 per direct labor…

Q: A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is…

A: The Correct Answer is Option "A" i.e. Straight Line Method. BV5=₱42,500

Q: . Inflated sales and bill-and-hold transactions. b.Bill-and-hold transactions and embezzlement of…

A: A Fraud Triangle is a framework that clearly indicates the motivation for an individual to commit…

Q: What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25…

A: Waterways Corporation is using standard costing method to evaluate its manufacturing efficiency. The…

Q: A change in salvage value or estimated life of an asset should 1) be handled in future periods…

A: Depreciation is the reduction in the value of an asset over a useful life of the asset. It is not a…

Q: Concord Distribution markcets CDs of the performing artist Unique. At the boginning of…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.

Q: On December 31, 2024, Rachel Cooking Services reports the following revenues and expenses. $ 11,100…

A: Financial statement means the statement which include the income statement and the balance sheet.…

Q: 54. In relation to transaction #1, How much is the capital gains tax due, if any? A. PO C.…

A: Capital gain refers to the concept where the profit earned on the asset sale which has increase in…

Q: Company A sells a single product at ₱20 per unit. The firm's most recent income statement revealed…

A: To calculate the impact on Profitability we first need to calculate the profitability as per…

Q: What should be reported in a hyper-inflationary statement of financial position prepared on December…

A: IAS 29 applies to financial reporting in hyper inflationary economies. The IAS requires that the…

Q: 13

A: An asset that is worth less than its book or net carrying value is considered impaired. In other…

Q: on and appeal process against the Commissioner’s decision?

A: When making an objection, the following procedure should be followed: The Income Tax Act's Sections…

Q: On October 1,2021 Steve Company borrowed $500,000 from its parent, Pam Company, at an annual…

A: Intercompany loans are made from one business unit of a company from another business unit.…

Q: he following transactions occurred for Salamon Co. in 2021. The beginning balance of Accounts…

A: The allowance for doubtful accounts is a contra assets account which decreases the balance of…

Q: PAYLESS Corporation filed a petition of bankruptcy on January 2011. On March 15, 2011 the trustee…

A: 4. Particulars Amount (P) Cash 200000 Inventory 750000 Plant (280000 - 2200000 of…

Q: Jaybo Company purchased the following portfolio of equity instrument designated as fair value…

A: Unrealised gains or losses are those gains or losses, which are not realised yet. These are only…

Q: The engagement quality control reviewer (choose he INCORRECT one) Does not otherwise participate in…

A: The Engagement quality control reviewer is an associated person of a registered accounting firm. The…

Q: Of P13,636. Payments oI P9 were made on both January 2, 2017 and January 2, 2018. Welington's…

A: A lease is an agreement to rent an asset in exchange for periodic payments. The agreement's two…

Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…

A: A journal entry is being used to record a commercial transaction in the accounting records of a…

Q: Continue >

A: Dianmante Co has purchased 40% of shares in Ashes Co. As it owns more than 25% of the shares , it…

Q: Data related to a bond issued by Roxon enterprises is given below: Interest expense on bond Increase…

A: Where bonds are issued at a price lower than it's par value, it is called a discount bond. These…

Question

8. Prepare or provide what is require of the problem below

Sand Company provided the following data at current
year-end:
Preference share capital, P100 par, 50,000 shares
Share premium – PS
Ordinary share capital, P50 par, 100,000 shares
Share premium – ordinary share
Retained earnings
5,000,000
500,000
5,000,000
1,000,000
2,000,000
Required:
1. Prepare journal entry assuming that 5,000 preference
shares are converted:
Preference shares are convertible into ordinary
shares on a share-for-share basis.
а.
b. Each preference share is convertible into 4 ordinary
shares.
2. Prepare journal entry assuming 5,000 preference shares
are callable and called in for payment at:
а.
120
b.
80

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

An entity provided the following information at year-end: Preference share capital, at par 2,000,000 Ordinary share capital, at par 3,000,000 Share premium 1,000,000 Sales 10,000,000 Total expenses 7,800,000 Treasury shares at cost – ordinary 500,000 Dividends 700,000 Retained earnings – beginning 1,000,000 What ending balance of Retained Earnings should be reported at year-end?
Use the following information for the next three questions: The shareholders' equity of QUALM MISGIVING Co. as of year- end consisted of the following: 10% Preference share, cumulative, fully participating, P400 par, 20,000 shares 8% Preference share, noncumulative, fully participating, 8,000,000 P320 par, 2,500 shares 800,000 Ordinary share, P40 par, 100,000 shares issued and outstanding 4,000,000
You are given the following information: ordinary shares, P80,000 (P80par); Share Premium-Ordinary, 200,000; and Retained Earnings, P400,000.Assuming only one class of share, the book value per share is? a.P280 b. P680 c. P80 d. P400
An entity provided the following information at year-end: Preference share capital, at par 2,000,000 Ordinary share capital, at par 3,000,000 Share premium 1,000,000 Sales 10,000,000 Total expenses 7,800,000 Treasury shares at cost – ordinary 500,000 Dividends 700,000 Retained earnings – beginning 1,000,000 What total shareholders’ equity should be reported at year-end?
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Return on common stockholders' equity Earnings per share on common stock Price-earnings ratio Dividends per share of common stock Dividend yield
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: a. Determine the earnings per share for 20Y5 and 20Y6. b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
At the start of the year, Brake Company had 300,000 issued P100-par ordinary shares and 120,000 issued P20-par preference shares. The following occurred during the year: How much is the ending balance of the Share Premium - Ordinary? How much is the amount of Legal Capital as of yearend? How much is the total equity-related receivables as of yearend
An entity provided the following shareholders' equity at year-end:Ordinary share capital, P100 par, 72,000 shares 7,200,000Subscribed ordinary share capital, 12,000 shares 1,200,000Subscription receivable 400,000Treasury shares, 4,000 at cost 600,000Retained earnings 2,000,000What is the book value per ordinary share?
Analyse the information given in the table below and answer the questions below:Details Company A Company BShare price R60 R90Number of ordinary shares issued 10 000 000 10 000 000Market capitalisation 600 000 000 900 000 000Annual earnings R90 000 000 R120 000 000Earnings per share A BPrice/ Earnings (P/ E) Ratio C DREQUIRED:Please note that all theoretical answers should be in your own words and not directly from yourtextbook or any other source. Remember to add a list of resources (correctly referencedaccording to the Harvard method) at the end of your assignment. Calculate the missing amounts for A ‐ D.Round off your answers to 2 decimal places.
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $300,000 $270,000 $240,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 3% stock, $100 par 20,000 20,000 20,000 (no change during year) Retained earnings 103,900 77,450 60,000 The 20Y7 net income was $27,050, and the 20Y6 net income was $18,050. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders’ equity fill in the blank 3 %…