Using the following information, prepare the Stockholders’ equity section of the balance sheet. 70,000 shares of common stock are authorized and 7,000 shares have been reacquired. Common Stock, $75 par Paid-In Capital in Excess of Par Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock $4,725,000 679,000 25,200 2,032,800 600,000
Q: Question 1 A company produces a single product called the Fidget. The following information relating…
A: Contribution per unit Contribution / total number of units $360,000/15000 $24 Selling price per unit…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105,…
A: In order to determine the contribution margin per unit, the variable cost per unit is required to be…
Q: An entity records on December 31, 20x1 show the following account balances: Trade accounts…
A: Liabilities are the obligations or dues which needs to be settled down or being paid by the…
Q: Record Journal Entries
A: Journal entries are those entries which a company have to record on the book of original entries.…
Q: The following financial information is taken from the annual reports of the Smith Company and the…
A: Formula: Profit margin ratio = ( Net income / Net sales ) x 100
Q: Scottso Division has the following results for the year: * $1,080,000 Revenues Variable expenses…
A: Net income = $1,080,000 - $440,000 - $400,000 = $240,000
Q: Preference decisions rank alternatives emerging from the screening process to help make the final…
A: Preference decision means selecting the best alternative from the competitive courses of action/…
Q: justment for the 30. Total charges onth of Sentemb
A: Collection ratio = 365 / debtor turnover ratio
Q: Describe the three types of computer applications that help employees, managers, and executives make…
A: Managers utilize computers to keep their employees on track, budget and plan projects, manage…
Q: Merchant Inc. has historically used FIFO. In year 4( beginning of the year) the company decided to…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Question 1 A company produces a single product called the Fidget. The following information relating…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Required: Preparea multiple-step income statement for the month of March by completing the following…
A: Solution:- Calculation of multiple income statement as follows under:-
Q: Question 42 TRUE or FALSE. Explain your answer with NO MORE THAN THREE SENTENCES. An increase in…
A: tariffs and quota are considered to be a trade barriers . in case of tariff :this is generally…
Q: Extrim Company produces monitors. Extrim’s plant in San Antonio uses a standard costing system. The…
A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…
Q: Tuao, employs Amelia Rodriquez as Branch Manager and Mary Gonzales as her sales assistant. The…
A: Internal control is a process, performed by a board of directors of business, management and other…
Q: showed the following selected asset balances on Dec 31, 2020
A: Working notes:- Depreciation on building…
Q: Do the balance sheet, income statement, and statement of cash flows contain all the information you…
A: The balance sheet is one of the three basic financial statements that are required for both…
Q: Mae Company acquired an equipment for P4,200,000 in 2018. The policy is straight line depreciation,…
A: depreciation is the charge that is put on the Asset due to its nature of depreciation. as the value…
Q: What is the tax liability (as a percentage of taxable income) if the customary deductions are taken…
A: Taxable income is the income on which a corporation have to pay tax to the government as per the tax…
Q: Break Free Corporation purchased a second-hand polishing machine. The entity incurred the following…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: What is the company's ROA? Denver, Incorporated, has sales of $27 million, total assets of $24.9…
A: Formula: ROA = ( Net profit / Total Assets ) x 100
Q: Cobb Co. can further process Product X to produce Product Y. Product X is currently selling for $30…
A: Using differential costing we will take decisions for a new proposal and it will compare additional…
Q: [The following information applies to the questions displayed below.] NewTech purchases computer…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: When an auditor qualifies an opinion because of inadequate disclosure, the auditor should describe…
A: An auditor auditing the financial statement is required to those proper disclosures have been made.…
Q: Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing…
A: Net profit for calculation of managerial remuneration is calculated by adjusting all the items…
Q: 1. Rapir Rheosystems makes high-performance rotational viscometers capable of steady shear and yield…
A: solution concept to calculate the amount that can be spent now we need to calculate the present…
Q: Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of…
A: Introduction: Retained Earnings : Retained Earnings are share holders funds. Retained earnings…
Q: 5- Internet banks can have branches or ATMS. * True False
A: An internet bank (virtual bank or online bank, or web bank) is a bank that lacks any physical branch…
Q: Question 13 The maximum amount an individual can contribute to her Registered Retirement Savings…
A: Registered Retired Savings Plan or RRSP is a saving plan in which a tax payer, or spouse or a common…
Q: The following information is available for Zhang Company: Item Units Unit Total cost Beginning…
A: Solution... Total costs of goods available for sale = $2,840 Total units available for sale =…
Q: Presented here are selected transactions of Palmer Company. Palmer sells in large quantities to…
A: Working Note: Amount received from Grey Company = (Sales - sales return) x (1 - discount rate) =…
Q: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is…
A: Formula: Depreciation per mile = ( Asset value - Salvage value ) / Total Estimated miles
Q: All of the following factors are considered in determining the useful life of an asset except:…
A: The question is related to Depreciation Accounting.
Q: Aurora Lighting Ltd has the following income statement items: sales of $12 000 000; cost of goods…
A: Formula: EBIT = Net sales - Cost of goods sold - Operating expenses
Q: Strand Group Inc started business in 2009 and for the year had the following transactions: 1.…
A: 1. Under double entries bookkeeping system one account is debited and other is credited. 2. The…
Q: Which one of the following represents the highest effective interest rate per year? Select one:…
A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…
Q: 50 River, Inc. issued bonds with a maturity amount of P450,000 and a maturity ten years from date…
A: Solution Concept In case of issuance of bond If nominal rate is greater than market rate of interest…
Q: Denis purchased a $10.000 face value Ontario Hydro Energy bond maturing in four years. The coupon…
A: Bond:- It is the loan that is taken by companies and the government from investors instead of banks.…
Q: ust pay ne irst mo fundable security a is rarely refundab
A: Given, Cleaning costs of Php15,000 per apartment. About 30% of the time, the tenants are also…
Q: A company is trying to decide which product to manufacture. The following information is available:…
A: Product Making Decision: As a rule, product managers use a mix of three types of information when…
Q: 1. Invested cash in the business, $5,000. 2. Paid office rent, $500. 3. Purchased office supplies on…
A: Introduction: Journal entries: Recording of a business transactions in a chronological order. First…
Q: In January 2022, Yoko Corporation, a newly formed company, issued 10,000 shares of its P10 par…
A: Treasury stocks are repurchased shares of the company. The firm can reissue these stocks at a…
Q: Flint Company is preparing its direct labor budget for 2022 from the following production budget…
A: Formula: Direct labor budget = Budgeted hours required for production x wages rate per hour where,…
Q: _______ Must receive dividends before common stockholders
A: Preferred stockholders are the class of shareholders that have a right to receive dividend in…
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Jones Cleaning Services purchased 12 months' worth of cleaning supplies from . Jones Cleaning…
A: Journal entry recording is the initial step of accounting cycle process. Under this, atleast one…
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in…
A: Depreciation expenditure is the sum depreciated for a single month, whereas accumulated depreciation…
Q: Use the following Adjusted Trial Balance to prepare the four journal entries required to close the…
A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In…
Q: me balance Sheet of the ek parther
A: In this problem after liquidation of assets as per rule first we…
Q: _______ A term for the debts of a firm
A: A debt is an amount owing for borrowed cash. The lender agrees to lend cash to the borrower in…
Using the following information, prepare the
Common Stock, $75 par
Paid-In Capital in Excess of Par
Paid-In Capital from Sale of
Treasury Stock
$4,725,000 679,000 25,200 2,032,800 600,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 200,000 shares of common stock at 12, receiving cash. b. Issued 8,000 shares of preferred 2% stock at 115. c. Purchased 175,000 shares of treasury common for 10 per share. d. Sold 110,000 shares of treasury common for 14 per share. e. Sold 30,000 shares of treasury common for 8 per share. f. Declared cash dividends of 1.25 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.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.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.
- Stockholders' Equity section of balance sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Prepare the Stockholders Equity section of the balance sheet as of June 30. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.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.Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.