Crane Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 6.1 million shares issued at an average value of $29 per share. As well, there were 5.9 million preferred shares authorized, with 295,000 of them issued at $15 per share. The balance in retained earnings was $26,650,000. The balance in accumulated other comprehensive income was $528,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders' equity: In total 170 000 new common shares were issued at $34 per share.
Q: What is Warren Clinic's net operating income? Hint: In order to determine this you will have first…
A: Operating Income -Operating Income, sometimes referred to as EBIT or Recurring Profit, is a crucial…
Q: You are an accountant at a large research university. The controller is considering switching its…
A: The answer is most likely b. $1 million.Here's why:The scenario describes a university considering a…
Q: During the year, Wright Company sells 455 remote-control airplanes for $110 each. The company has…
A: Under the FIFO method, the oldest products in inventory are sold first.
Q: Megamart provides the following information on its two investment centers. Investment Center…
A: The answer is in the explanation section below.Explanation:Electronics Center:1. Income:…
Q: Xerox reports the following pension and retiree health care ("Other") footnote as part of its 10-K…
A: 1. Service Cost and Interest Cost:Service Cost: This represents the cost of employee benefits earned…
Q: A growing chain is trying to decide which store location to open. The first location (A) requires a…
A: Return on Investment (ROI) is the formula of ratio which is used to determine the percentage of…
Q: If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the…
A: If goods are sold with terms FOB shipping point, the risks and rewards related to those goods are…
Q: Following are preacquisition financial balances for Padre Company and Sol Company as of December 31.…
A: Consolidated financial statements are a type of financial report that compiles the financial data…
Q: The Ski department reports sales of $630,000 and cost of goods sold of $441,000. Its expenses…
A: Departmental income statement:A departmental income statement is an income statement where the…
Q: Required information [The following information applies to the questions displayed below.] Hitzu…
A: Three important elements of accounting equation are Assets, Liabilities & Equity.The accounting…
Q: On January 1, 2023, Hi-Supreme Company acquired 40% of the ordinary shares of an associate for…
A: Consolidations:Consolidations refer to the method or financial strategy that empowers a company to…
Q: Give me correct answer with explanation.j
A: The objective of the question is to calculate the total, fixed, and variable predetermined overhead…
Q: Megamart provides the following information on its two investment centers. Investment Center…
A: Profit Margin = (Net income / Sales) x 100Investment Turnover = Sales / Average Invested…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Budgeted Total overhead is the sum of Variable manufacturing overhead and Fixed manufacturing…
Q: [The following information applies to the questions displayed below.] Diego Company manufactures one…
A: The cost of goods sold includes the cost of goods that are sold during the period. The gross profit…
Q: pina colada corporation had the following stockholders' equity accounts on january 1, 2022: common…
A: Treasury stock refers to shares of a company's own stock that it has previously issued and…
Q: Sparky Corporation uses the weighted-average method of process costing. The following information is…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Q: Café Tropical is a local restaurant specializing in tropical cuisine. Among its various…
A: The objective of this question is to determine the effect on Café Tropical's operating income if it…
Q: DS Unlimited has the following transactions during August. August 6 Purchases 82 handheld game…
A: Lets understand the basics.There are two type of inventory system which are followed:-(1)…
Q: D sold capital property in the current year for net proceeds of $700,000. The property has an…
A: A capital asset is an item that you own for investment or personal purposes, such as stocks, bonds…
Q: During 2023, Magnificent & Powerful Company purchased marketable equity securities to be measured at…
A: Investment means an asset purchased in expectation of earning a return on such investment in future…
Q: 2 Southeastern College began the year with endowment investments of $1,450,000 and $860,000 of…
A: Your analysis is on point! The provided journal entries are correct for both public and private…
Q: Calvin reviewed his canceled checks and receipts this year (2021) for charitable contributions,…
A: The donations made to nonprofit organisations are known as charitable contributions. Money, non cash…
Q: Beach Vacations pays salaries and wages on the last day of each month. Payments made on December 31,…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break even point is the optimum point of no profit no loss as at this point the firm is earning zero…
Q: Which of the following expressions is incorrect? Gross profit - operating expenses = net income Net…
A: Operating expenses - Cost of goods sold = Gross profit, This is Incorrect…
Q: On January 2, 2023, Precious & Gracious Company purchased marketable equity securities as investment…
A: The provided questions pertain to accounting for investments in securities and the consequences of…
Q: Private companies are not under Sarbanes-Oxley. Why do some private companies follow the law?
A: Sarbanes-Oxley -The act enforced more onerous record keeping requirements and established severe new…
Q: Witter House is a calendar-year firm with 380 million common shares outstanding throughout 2024 and…
A: It represents the portion of a company's profit allocated to each outstanding share of common stock.…
Q: A machine costing $209,400 with a four-year life and an estimated $17,000 salvage value is installed…
A: Depreciation refers to the charge that represents the decline in the value of fixed asset due to its…
Q: Ray Company provided the following excerpts from its Production Department's flexible budget…
A: A flexible budget can adapt to changes in any situation such as sales or production volume or any…
Q: Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2…
A: Answer:- To assist adoptive parents in paying or eligible adoption costs, the federal government…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: Gain on Restructuring of Debt Pearl National Bank Land Bad Debt Expense Notes Receivable (c) Stellar…
A: Journal entries are used to record all the financial transactions in a business. It helps to know…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: A master budget can be defined as an estimate of the revenue earned or expenses incurred over a…
Q: d & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: Total contribution margin lost is to be compqred with total saving in fixed cost due to…
Q: 1. Details of OCC Corp inventory balance and Cost of Good Sold are given below: $ Million 2022 2021…
A: Calculate 2022 :-FIFO Inventory Balance = LIFO Inventory…
Q: On January 1, a company purchased 3%, 10-year corporate bonds for $73,459,316 as an investment. The…
A: Bonds are issued by the companies to get the funds needed to meet the required obligations. The…
Q: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss…
A: Income tax payable:The tax amount that is due to the government or tax authority is called income…
Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…
A: FIFO METHODFIFO cost method assumes that units of inventory which are first bought are sold first,…
Q: Witter House is a calendar-year firm with 380 million common shares outstanding throughout 2021 and…
A: It represents the portion of a company's profit allocated to each outstanding share of common stock.…
Q: Objective Question: In accounting, what term describes the illegal actions that individuals may…
A: Accounting involves recording, summarizing, and interpreting financial transactions to provide…
Q: CUETO Company, a wine producer, reported the following information in its general ledger as of…
A: These are the assets which can be converted into cash and cash equivalents with in a period of one…
Q: Ovation Company has a single product called a Bit. The company normally produces and sells 28,800…
A: To calculate the incremental net operating income, we need to determine the increase in contribution…
Q: The following transactions are July activities of Bill's Extreme Bowling, Incorporated, which…
A: Revenue recognition principle are based on accrual basis of accounting which says that revenues are…
Q: On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account…
A: The objective of the question is to record the adjusting entry for net realizable value of the…
Q: Service provided by: Service Provided to: S₁₁ S₂ P₁ P2 $84,000 $96,000 $100,000 $150,000 Allocate S₂…
A: The step-down method allocates support-department costs to other support departments and to…
Q: DS Unlimited has the following transactions during August. August 6 Purchases 82 handheld game…
A: The journal entries are prepared to record the transactions on a regular basis. The cost of goods…
Q: Brent, Matt, Chris, Brad, and Anwer are five unrelated shareholders, and they each owns 20 of the…
A: Accumulated earnings and profits of a company are available after paying dividends. It is the sum of…
Q: At the beginning of 20X3, W7w Tax Prep Company reported Accounts Receivable $11500 and Allowance for…
A: The account receivables represents the amount due for payment but not yet received yet. The…
Step by step
Solved in 3 steps with 3 images
- 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.The ABC Corp. was organized on September 1. 2022. with authorized capital of 1,000,000 shares of P50 par value, Ordinary Share Capital. Six Hundred Fifty thousand (850,000) shares were issued for cash at P70 per share. During the year, the company posted a profit of P12,500,000 and distributed dividends of P8,500,000. Dividend per share paid on ordinary share capital as of December 31, 2022, amounted toPharma Shop Ltd. is a mid-sized public company that had been in operation for many years. On December 31, 2023, it had an unlimited number of common shares authorized and 5.2 million shares issued at an average value of $25 per share. As well, there were 5 million preferred shares authorized, with 250,000 of them issued at $20 per share. The balance in retained earnings was $26,610,000. The balance in accumulated other comprehensive income was $525,000. The preferred shares pay an annual dividend of $2 per share. During 2024, the following transactions affected shareholders’ equity: In total, 200,000 new common shares were issued at $30 per share. The preferred dividend for the year was declared and paid. A 10% common stock dividend was declared when the market price was $33 per share. The shares were distributed one month after the declaration. In early December 2024, a dividend of $1.50 per share was declared on the common shares. The date of record was December 15, 2024. The…
- Some of the account balances of Wildhorse Limited at December 31, 2022, are as follows: $7 Preferred shares (1.600 shares authorized, 1.600 shares issued and outstanding) Common shares (unlimited authorized, 50.000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income (31) The price of the company's common shares has been increasing steadily on the market; it was $19 on January 1, 2023, and advanced to $22 by July 1 and to $25 at the end of 2023. The preferred shares are not openly traded but were appraised at $118 per share during 2023. Wildhorse follows IFRS and had net income of $154,000 during 2023. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. The company declared a property dividend on April 1. Each common shareholder was to receive one share of Blossom Corp. for every 10 shares outstanding Wildhorse had 7,500 shares of Blossom (2% of the outstanding shares), which it had…Blue Spruce Limited reported profit of $472,686 for its November 30, 2024, year end. Cash dividends of $63,700 on the common shares and $60,000 on the noncumulative preferred shares were declared and paid during the year. The following information is available regarding Blue Spruce's common shares: Dec. 1, 2023 Feb. 28, 2024 The opening number of common shares was 55,100. Sold 8,800 common shares for $220,000 cash. May 31, 2024 Nov. 1, 2024 Reacquired 4,400 common shares for $101,200 cash. Issued 13,200 common shares in exchange for land with a fair value of $280,000. (a) Question Part Score (b) Calculate the weighted average number of common shares for the year. Weighted average number of shares 2/2rry corporation is a mid-sized public company that had been in operation for many years. December 31, 2021, it had an unlimited number of common shares authorized and 1 million shares issued with a dollar value of $2,400,000. As w re were 5 million preferred shares authorized, with 10,000 of them issued with a dollar value of $700,000 balance in retained earnings was $2,360,000. The preferred shares pay an annual dividend of $3 per share. ing 2022, the following transactions affected shareholders' equity: ary 3- 50,000 new common shares were issued at $24 per share. ary 6-12,000 new preferred shares were issued at $75 per share. 12- The board of directors declared and paid $0.60 dividend for all common shareholders and the required $5 per edividend on preferred shares. (Combine both dividends into one entry) 11- The net income for 2022 was $856,000. Prepare the required closing entries for dividends and net income.
- meric Response Sample Corp. was organized on January 1, 2021, with authorized capital of 100,000 shares of P55 par value Ordinary Share Capital. Eighty-five thousand (85,000) shares were issued for cash at P77 per share. During the year, the company earned a profit of P1,250,000 and distributed dividends of P650,000. Instructions: Based on the given information, compute for each of the items listed below. 1. Balance of Retained Earnings account as of December 31, 2021. 2. Balance of ordinary share capital account as of December 31, 2021. 3. Total contributed capital as of December 31, 2021. 4. Total additional paid-in capital as of December 31, 2021. 5. Total shareholders' equity as of December 31, 2021.Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.Blossom Inc. had net income for the current year ending December 31, 2023 of $1.230,480. During the entire year, there were 506,000 common shares outstanding. The company had two classes of preferred shares outstanding the Class A preferred shares were $2.62 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 102,000 $5.62 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blossom had outstanding a $1,000,000, 8% bond issued in 2012 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000, 7% bond issued in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Blossom's tax rate is 38%.
- The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 53,100 shares authorized; 23,280 and 21,000 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? Outstanding shares The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later. Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share. Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $40.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $2.00 per share cash dividend…Whispering Inc. had net income for the current year ending December 31, 2023 of $1,063,260. During the entire year, there were 501,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.60 cumulative shares of which 12,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 107,000 $5.60 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Whispering had outstanding a $1,000,000, 7% bond issued at par in 2012 that was convertible to 22,000 common shares. The company also had outstanding a $1,000,000, 6% bond issued at par in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Whispering's tax rate is 37%. (a) Calculate the income effect of the dividends for the Class A preferred shares. (b) Your answer is correct. Dividends on Class A preferred shares $ (c) eTextbook and Media Your answer is…BFAR Company has the following transactions: Acquired 8,000 shares of its own outstanding shares at P20 per share on February 5, 2022. Sold 4,000 of these shares at P27 per share on August 9, 2022. . On November 1, 2022, sold 2,000 shares from its treasury for P18. ● The cost method is used to record treasury shares transactions. The par value of the shares is P15. Compute the cost of remaining treasury shares.