The corporation was established in 2019. The Corporation issued 100,000, 20 par value shares ofstocks at an issue price of 25. On May 1, 2020, the corporation issued 20,000 new shares at an issueprice of 30 per share. The corporation reported a net income of 356,785 and 425,000 in 2019 and 2020, respectively. Dividends of ₱2 per share were declared and distributed to shareholders on March 31,2020. There were no dividends distributed on the first year of operation of the corporation. Make a Statement of Changes in Equity for the year 2020.

The corporation was established in 2019. The Corporation issued 100,000, 20 par value shares ofstocks at an issue price of 25. On May 1, 2020, the corporation issued 20,000 new shares at an issueprice of 30 per share. The corporation reported a net income of 356,785 and 425,000 in 2019 and 2020, respectively. Dividends of ₱2 per share were declared and distributed to shareholders on March 31,2020. There were no dividends distributed on the first year of operation of the corporation. Make a Statement of Changes in Equity for the year 2020.

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 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

See similar textbooks

Similar questions

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%.
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.
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
The corporation was established in 2019. The Corporation issued 100,000, 20 par value shares ofstocks at an issue price of 25. On May 1, 2020, the corporation issued 20,000 new shares at an issue price of 30 per share. The corporation reported a net income of 356,785 and 425,000 in 2019 and 2020, respectively. Dividends of ₱2 per share were declared and distributed to shareholders on March 31,2020. There were no dividends distributed on the first year of operation of the corporation. Make a Statement of Changes in Equity for the year 2020.
An entity was incorporated on January 1, 2020 with proceeds from the issuance of P5,000,000 in shares and borrowed funds of P1,000,000. During the first year of operations, revenue from sales amounted to P8,000,000 and operating costs and expenses totaled P6,000,000. On December 15, the entity declared a P500,000 cash dividend, payable to shareholders on January 15, 2021. No additional activities affected owners’ equity in 2020. The liabilities increased to P1,800,000 by December 31, 2020. What amount should be reported as total assets on December 31, 2020?
The Maria Incorporated was established in 2018. The Corporation issued 100,000, ₱20 par value shares of stocks at an issue price of ₱25. On May 1, 2019, the corporation issued 20,000 new shares at an issue price of ₱30 per share. The corporation reported a net income of ₱356,785 and ₱425,000 in 2018 and 2019, respectively. Dividends of ₱2 per share were declared and distributed to shareholders on March 31, 2019. There were no dividends distributed on the first year of operation of the corporation. Make a Statement of Changes in Equity of Maria Incorporated for the year 2019
Davao Company was incorporated on July 1, 2021, with P2,000,000 from the issuance of shares and borrowed funds of P300,000. During the remainder of 2021, the company's profit was P100,000. On December 15, Davao Company paid P8,000 cash dividends. No additional activities affected owner's equity in 2021. At December 31, 2021, Davao Company's liabilities had increased to P376,000. In Davao's December 31, 2021 statement of financial position, total assets should be reported at A P2,768,000 B P2,392,000 C) P2,468,000 D) P2,400,000
Green Corporation is authorized to issue 120,000 common shares and 80,000, $4 preferred shares. At Jan 1, 2019, the company's shareholders equity included the below: 22,000 common shares valued at $182,000 7,000 preferred shares valued at $75,000 Retained earning was $45,000 During 2019 the net profit earned by Green Corp. was $25,000. The company did not issue any dividend during 2019. Also during 2019 the company issued the below: On Apr 4, 2019 - 8,000 common shares for $10 each On Jun 10, 2019 - 4,000 preferred shares for $15 each and On Aug 7, 2019 - 12,000 common shares for land valued at $125,000. Prepare the shareholders equity part of the balance sheet in Dec 31, 2019.
Blossom Corporation was organized on January 1, 2019. During its first year, the company issued 2,300 shares of HK$50 par value preference shares and 130,000 shares of HK$10 par value ordinary shares. At December 31, the company declared the following cash dividends: 2019, HK$5,300; 2020, HK$13,100; and 2021, HK$30,000 (HK$ in thousands). Show the allocation of dividends to each class of shares, assuming the preference share dividend is 6% and non-cumulative. Allocation to preferred shares Remainder to ordinary shares HK$ List of Accounts HK$ eTextbook and Media 2019 5,300 HK$ HK$ 2020 HK$ HK$ 2021
Bingo Corporation’s board of directors declared a P950,000 cash dividend on March 1, 2018, payable on June 1, to shareholders of record on March 15. Prepare all appropriate entries needed on the declaration, record, and payment dates.
An entity owed 100% of another's entity's preference shares and 20% of ordinary shares. The investee's share capital outstanding on December 31, 2019 included 5,000,000 of 10% cumulative preference shares and 10,000,000 of ordinary shares. The investee reported net income of 8,000,000 for 2019. No dividend was declared for both preference and ordinary shares in 2019. What amount should be reported as investment income for 2019? a. 1,600,000 b. 1,500,000 c. 2,000,000 d. 1,000,000
Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020?