The NiceWay Corporation's statement of financial position shows the total stockholders' equity of P5,000,000 as of December 31, 2019. Required: Compute the book value per share of each class of share capital under each of the following independent assumptions: 1. The company has only one class of shares outstanding: 200,000 ordinary shares, par value P15. 2. The company has two classes of shares outstanding: 10,000 shares of P100 par preference share capital with liquidation value of P120 per share and 100,000 shares of P15 par ordinary share capital.
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- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Lyon 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.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. 6.73
- 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.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.For the year 2021, Aquamarine Corporation has earned a net income of P400,000. Compute for the basic earnings per share under each of the following assumptions a. The company has only one class of stock with 100,000 shares outstanding b. The company has shares outstanding as follows: 8% Preference Share Capital P50 par, 20,000 shares outstanding Ordinary Share Capital P10 par, 100,000 shares outstanding i. Preference shares are cumulative ii. Preference shares are non-cumulative, dividends has been declared by the BOD iii. Preference shares are non-cumulative, no dividend has been declared by the BOD c. Same as letter b but with additional information with regards to the issuance of ordinary shares Jan 1 Beginning Balance 60,000 shares May 1 Additional Isuance 20,000 shares Aug 1 Additional Isuance 20,000 shares Nov 1 Additional Isuance 30,000 shares
- The VWX's statement of financial position shows total shareholders’ equity of P3,150,000 as of December 31, 2020. What is the book value per share, assuming that the company has only one class of share capital issued consisting of 52,000 ordinary shares, including 2,000 shares reacquired, with a par value of P 10?The ABC's statement of financial position shows total shareholders' equity of P3.150.000 as of December 31, 2020. What is the book value per share, assuming that the company has only one class of share capital issued consisting of 52,000 ordinary shares, including 2,000 shares reacquired, with a par value of P 10?Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings. P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31. the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?
- Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P140/share. DR Cash P70,000 CR Ordinary share capital P65,000 CR Ordinary share premium P5,000. How many shares were issued? Using data above, what is the par value per share for this share capital?The following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019. Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000 Share Premium - Ordinary $ 75,000 Retained Earnings $ 420,000 Prepare the required Journal Entries for the following unrelated items! 1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share. 2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split. 3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.You have been asked to calculate the basic and diluted earnings per share figures for RXB Company. The following information are valid by the end of 2019: 1) There were 2,900,000 shares outstanding at the beginning of 2019. 2) The company has preference share capital of $7,500,000 at the beginning of 2019. These were8%, cumulative, convertible preference shares with $3 par value per share. Each preference share is convertible into THREE ordinary shares. The conversion rate must be adjusted for any share dividend or share split occurring during the year. On May 1, 2019, 300,000 preference shares have been converted into ordinary shares. Another 300,000 shares have been repurchased at cost on the same date. The remaining shares were outstanding till year end. The preference dividend is paid every 2 months. 3) The company has two convertible debt instruments outstanding at the end of 2019 as follows: A) Convertible bond class (A): This is a $1,000,000 face value, 6%, 10-year bond that was…