Prepare the necessary journal entries for the following transactions: On April 5, 2021, Graham Company purchased 2,000 shares of its own $1 par value common stock (treasury stock) at a cost of $35 per share. On October 8, 2021, the company reissued 1,200 shares at a price of $37 per share. On November 20, 2021, the company reissued the remaining 800 shares at a price of $31 per share.
Q: Prepare journal entries for the following transactions that took place during the year, 2021: a.…
A: Journal entries are the basic method of recording financial transections. These are used to prepare…
Q: 1. Managerial accountants have the responsibility to: а. accept gifts or hospitality that may allow…
A: Answer 1 : d Answer 2 : b Answer 3 : b
Q: How do I calculate the before-tax total amount if the tax is 40% and after-tax amount is 1255162.00?…
A: Tax amount reduced from the before tax amount results in after tax amount. The given tax rate is…
Q: ds of a domestic corporation: 2018 2019
A: Taxable income is the income on which an individual calculates tax after all deductions in a given…
Q: When preparing the operating section of the statement of cash flows, using the indirect method, how…
A: Cash flow is the net sum of funds that an entity receives or disburses during a given time period. A…
Q: Prepare the following: Post-closing Trial Balance
A: The question is related to Trial Balance. Trial Balance is the third stage of Accounting. After…
Q: Should they accept this special order?
A: In special order sales cases, question, sales orders should be accepted only when sales value is…
Q: Which of the following adequately describes Management Accounting? It is the process of identifying,…
A: Solution Concept Financial accounting The accounting that is done for the purpose of…
Q: On January 1, 2023, the city government provided Swerte Company a zero interest, P6,000,000 loan…
A: Grants- Grants are financial assistance to institutions that promote some specially designated…
Q: A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The…
A: The spending required to generate and sell products and services, or to acquire assets, is referred…
Q: 30. A building previously occupied by Grand Company with a cost of P10 million and an accumulated…
A:
Q: February 1, 2022 to its ten shareholders. The following fair value less cost to distribute of the…
A: A company may distribute dividend in cash, kind or in form of it's shares which affects it's…
Q: 1) Why do companies develop flexible budgets for variance analysis? Because actual activity level…
A: 1. Flexible budget is prepared for different level of sales volume. When the company prepares static…
Q: Yamato Company’s 2019 fixed manufacturing overhead costs totaled Php120,000 and variable selling…
A: Under the variable costing method, product costs are those costs which are variable and related to…
Q: Which of the following is true? a. The Static Budget Variance for operating income is calculated…
A: Actual operating income - Static operating income = Static budget variance Actual operating income -…
Q: Compute number of shares outstanding after the stock dividend. Number of shares outstanding
A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…
Q: pha Company leased an eq
A: Given as, To find, Total financial avenue Amortization schedule Journal entries
Q: What is the difference between current and quick ratio
A: Introduction: Financial ratios, often known as accounting ratios, compare a company's financial…
Q: At the end of an accounting period, a company's liabilities equaled $295,000, and owner's equity…
A: Introduction: The connection between a company's assets, liabilities, and capital is referred to as…
Q: Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value…
A: Introduction: The book value of a firm is the amount of money that shareholders would get if assets…
Q: 2.1 REQUIRED Use the information provided below to prepare the performance report for Lonmin…
A: The performance report is prepared to compare the actual results, flexible results and master…
Q: Handheld fiber optic meters with white light polarization interferometry are useful for measurine…
A: The calculation of contribution margin per unit has been made as follows: Contribution margin per…
Q: ,700
A: Interest refers to the compensation paid for using someone else money. the borrower pays the…
Q: d. Double Declining Balance Method. BVs=P26,214.40 e. Sum of the Years Digit Method. BVs=P25,454.55…
A: Explanation of the concept In the present problem, we need to calculate the depreciation as per the…
Q: With a savings account, You earn the highest possible interest rate You are allowed an unlimited…
A: Saving accounts are the most commonly used bank accounts which provides interest and unrestricted…
Q: The auditor asked for the general information sheet of the company. Which of the following assertion…
A: An auditor is a person who audits the books of the company. The auditor is an authorized person who…
Q: Problem: The company purchased office supplies on September 01, 2020 amounting to P30,000. On…
A: Under expense method, the amount spent is booked as expense. Any unused supplies is transferred to…
Q: plz solve it within 30-40 mins I'll upvote your answer
A: The question is related to determination of Selling price. If the mark up percentage is given on…
Q: 3. Consider the abbreviated financial statements below for 2015 and 2016 Arch Enterprises 2015 &…
A: Owners Equity = Current Assets + Net Fixed Assets - Current Liabilities - Long Term Debt
Q: Assume the University of Morton and McColl (could be public or private) calculates gross tuition and…
A: Journal Entries is the method to record transactions within the accounting records of the business.…
Q: ou are a project manager for the Swirling Seas Cruises food division. You’re considering two…
A: Payback period is the time required to recover the investment made in a project. Formula: Payback…
Q: Direction: Study the given data below and compute for (1) the cash generated/used in financing…
A: Cash Flow Statement shows Inflow/Outflow of Cash on account of Operating, Investing, and Financing…
Q: On January 1, 2023, the city government provided Swerte Company a zero interest, P6,000,000 loan…
A: Year Present value @ 8% Cumulative factor 1 0.926 0.926 2 0.857 1.783 3 0.794 2.577 4 0.735…
Q: Bernis Company has two service departments: Personnel and Inspection. Böth service departments…
A: Using step down method, the service department cost is also allocated to other service department…
Q: Perez Company is considering an investment of $30,485 that provides net cash flows of $9,000…
A: Internal rate of return is the rate at which the present value of cash inflows is equal to the…
Q: MEERA LTD. Comparative Statements of Financial Position December 31…
A: A cash flow is one of a firm's financial statements that describes cash flows into and out of the…
Q: On 1 January 2006, A. Simpson, a building contractor, purchased three dumpers for $48,000 each. Mr…
A: The ledger accounts are prepared to record the transactions to the specific accounts. The gain on…
Q: wing is information on two alternative investment projects being considered by Tiger Company. The…
A: Net present value is difference between the present value of cash flow and initial investment. It…
Q: A corporation has taxable income from operations of $1 million. In addition, it received $100,000 of…
A: Introduction: Income might take the form of cash, real estate, or services. Unless specifically…
Q: 18. Which of the following statements is Incorrect? * The fair value of investment property shall…
A: Investment- Investment is defined as the purchase of an asset in order to generate income or capital…
Q: customer misses his flight due to the one hour wait in the check-in line. They are a
A: When there is case of error there is need to be rectify this error and provide the alternative…
Q: Foreign operations that are an integral part of the operations of the entity would have the same…
A: The question is related to The Effects of Changes in Foreign Exchange rates. The functional currency…
Q: Bernis Company has two service departments: Personnel and Inspection. Both service departments…
A: The costs of service departments are allocated using various methods as direct method, step…
Q: Under IFRS, how is presentation currency defined? The currency in which the financial statements…
A: Presentation Currency: This is the presentation currency is the term given to the monetary unit in…
Q: In a Master Budget, the Production Budget Units of Goods to be manufactured = a. Beginning…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: rms 1/10, n/30, FOB destination. The items arrived at Beetle's warehouse or the purchase on May 7.…
A: Free on board" refers to who is responsible for things that are damaged or destroyed during…
Q: A corporation has taxable income from operations of $1 million. In addition, it received $100,000 of…
A: The tax liability is the amount of tax payable on the taxable income of the corporation. The…
Q: 2. Lynx Oil Company has 3 wells on a lease in Texas and is the only working interest owner. Indirect…
A: Indirect costs or those who are incurred through a variety of activities but cannot be assigned to…
Q: A company s planned activity level for next year is expected to be 100000 machine hourS. At this…
A: Manufacturing overhead cost is the sum of all the indirect costs which are incurred while…
Q: 4.2 Accounting Agency Corporation provides primarily two kinds of services: accounting and tax.…
A: Breakeven sales revenue is that level of sales at which business is only recovering it's fixed costs…
- Prepare the necessary
journal entries for the following transactions:
- On April 5, 2021, Graham Company purchased 2,000 shares of its own $1 par value common stock (
treasury stock ) at a cost of $35 per share. - On October 8, 2021, the company reissued 1,200 shares at a price of $37 per share.
- On November 20, 2021, the company reissued the remaining 800 shares at a price of $31 per share.
Step by step
Solved in 2 steps with 2 images
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?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.
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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%.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.Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
- Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?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.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.