12) ABSD INC.'s B.O.D's approved issuance of 5,000,000 share of $50 par value common stock. Currently 4,200,000 shares are outstanding. Current stock price is $60 A 4% stock dividend is declared on March 1, 2020 and paid two months later. Show journal entries required to record declaration and payment of distribution.
Q: For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include…
A: Qualified business income is the calculation of business income or gains after applying the…
Q: Find i m if an amount is invested at 6.00% compounded every 3 months. a. 6.00%, b 3.00%, c 1.50%,…
A: Introduction: In solving time value of money problems, interest rate is given for entire year.…
Q: Rogers Products uses a periodic inventory system. The company's records show the beginning inventory…
A: Ending inventory is the amount of inventory in hand at the end of the period. It is reported in the…
Q: BMI's East Division has a cost of capital of 20 percent. Selected financial information for the…
A: 1. EXPENSE IN ONE YEAR = $600,000 / 3 = $200,0002. ADJUSTED PROFIT = $340,000 + $200,000 = $540,000…
Q: Grace manufactures and sells miniature digital cameras for $160 each. Sales in May were 2,600 units,…
A: Sales Budget and Production budget :The sales budget is prepared to show the number of units to be…
Q: Schedule M-2
A: Partnership is a form of business where two or more partners are responsible to carry a business…
Q: Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas…
A: Differential analysis is the comparison between two options with respect to cost and revenue which…
Q: Prepare a classified balance sheet for Lantana Company. a. Bought $900 of supplies on account. b.…
A: Balance sheet is the financial statement which is prepared by the entity for the purpose of…
Q: The coupon interest rate: O Is larger than the stated interest rate Is the same as the market…
A: Bonds are the obligation on an entity. These are securities which are issued by the entity in order…
Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…
A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…
Q: This year Jim created an irrevocable trust to provide for Ted, his 32-year-old nephew, and Ted's…
A: Taxable gift refers to the money or any item on which nothing should be received in return that is…
Q: Please provide the necessary journal entries to record the purchase, changes in investment and sale…
A: 1. As per the data given in the question, it can be treated that the investment has been made in the…
Q: An apprenticeship contract is one whereby a firm owner undertakes to provide full vocational…
A: The Answer is "False" Reason: The UAE Companies Law does not prescribe any minimum share capital but…
Q: values, advertises and sells residential property on behalf of its customers. The company has been…
A: Cash Budget - An organization's anticipated future cash flow over a specific time period is…
Q: Prepare the journal entry to record Jevonte Company's issuance of 38,000 shares of its common stock…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Calculate Rudolph's return on stockholders' equity for 2002. • Calculate Rudolph's current ratio for…
A: 1. Forrmula = Net income ÷ Average common share holders equity 2. Calculation of Average common…
Q: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024.…
A: 1. Basic EPS (Net income - preferred dividends) ÷ weighted average of common shares outstanding…
Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…
A: The budgets are prepared to estimate the costs of production to be incurred during the period. The…
Q: how can i do jeneral journal for this with 10% GST
A: JOURNAL ENTRIES FOR DA ONE 26.Nov Toys R Uz.....Dr. $39,600 To Ranger's…
Q: Diego Company manufactures one product that is sold for $78 per unit. The following information…
A: Unit product cost under Variable costing includes the product cost that is direct materials, direct…
Q: What rate of interest did you earn for a period of 2417 days if you invested $175 and you earned…
A: The correct answer is: (D) 19.16% To calculate the rate of interest, you can use the formula Rate =…
Q: Vignette #2 The Sports Equipment Company produces a wide variety of sports equipment. Its newest…
A: Return on Investment (ROI)=Net incomeAverage operating assets invested×100 Net Income=Selling price…
Q: Buckley Company operates three segments. Income statements for the segments imply that profitability…
A: The reporting of segments splits the activities of a business down into more manageable chunks, also…
Q: Backwoods Mining Co. acquired mineral rights for $24,213,000. The mineral deposit is estimated at…
A: Depletion expense :Depletion expense is the cost that is charged against the profits for the use of…
Q: Choosing Between Two Companies Assets Bank Accounts Receivable Supplies Equipment Land and Building…
A: The financial statement reflects the financial performance and position of the business in the…
Q: E10.23B (LO 3) (Depletion Computations-Minerals) At the beginning of 2025, Allister Com- pany…
A: Solution... Total cost of mine = Purchase price - cost of land + development costs + assets…
Q: Oak Canon produces and sells 13,900 units of Product X each month. The selling price of Product X is…
A: Income can be calculated by deducting the variable cost and fixed cost from the sales revenue. The…
Q: QUESTION 39 Which of the following companies is dissolved on the death of any of the partners? OaA…
A: According to Bartleby Guidelines, subject matter experts are allowed to answer only 1 question.…
Q: Ford Corporation estimates the fair value of its trademark is estimated to be $560,000. The current…
A: The time period trademark refers to a recognizable insignia, phrase, word, or image that denotes a…
Q: ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total…
A: Incremental profit can be calculated by reducing additional costs from additional revenue.…
Q: On February 20, services valued at $60,000 relating to the organization of a corporation were…
A: The issue of shares is the main source of generating finance for the company. The holder of the…
Q: URDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The…
A: Lets understand the basics. Margin of safety is a all sales derived over a break even point. In…
Q: Condor Company is considering an investment in a project that has an internal rate of return of 12%.…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: $31,000 cash when her outside basis was $18,000. She was relieved of her $29,000 share of…
A: Partnership is an agreement between two partner were they share profit and losses in everyday ratio…
Q: This year Omar and Mike purchased realty for $250,000 and took title as equal tenants in common.…
A: ANSWER Here in this question Omar and Mike purchased realty for $250000 and they have equal tenants…
Q: Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: rker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its…
A: A standard cost is a predetermined target cost that provides a benchmark against which actual…
Q: The employees of vintage clothes achieved all of the sales goals for 2017 vintage decides to reward…
A: 20% on annual net income after deducting the bonus means the bonus is paid 20% of net income after…
Q: 20Y3 2012 $725,000 $650,000 5,637,500 4,687,500 For 2012 and 20Y3, determine (1) the accounts…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: Production and Purchases Budgets in Units At the end of business on June 30, 2017, the PE Rug…
A: Production budget: It is prepared o the basis of sales budget and the desired ending inventory.…
Q: ONE At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The…
A: Lets understand the basics. As the bottleneck the name suggest is a block of workflow in the…
Q: Explain the criteria used for judging a transfer pricing system (ii) Explain the term “…
A: (i) The criteria used for judging a transfer pricing system include the following: 1.…
Q: Mifflin Company reported the following for the current year: Net sales $ 60,000 Cost of goods…
A: In this question, we need to compute the following: Accounts Receivable Turnover Days’ Sales…
Q: Jellison Company had the following operating data for its first two years of operations: Variable…
A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…
Q: Retirement -Sale of interest to continuing partner Long-term partners, A, B, and C have capital…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: V5. Explain 5 reasons that can help you with the theory of descriptive decision-making during your…
A: BENEFITS OF DESCIPTIVE DECISION MAKING Benefits of Making DecisionsBenefits of Making decisions is…
Q: The partnership started its business on January 1, 2021,calendar year. Partner Beta had a beginning…
A: DISTRIBUTEION OF PARTNERSHIP INCOME The profits and losses of the firm are allocated among the…
Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…
A: ANSWER Here in this question there is only asked to record the journal for the declaration of stock…
Q: Montana Corp. is preparing its statement of cash flows. During the period, Montana sold a machine…
A: Cash flow statement is the one which is prepared in order to depict the cash position of the entity.…
Q: Skip is a cash-basis taxpayer. He passed away on June 10, 2021. Which of the following would be…
A: Introduction:- Aa cash basis tax payer is a taxpayer who reports income and deductions in the year…
Step by step
Solved in 2 steps
- 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?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?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.
- 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.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.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.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?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.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.
- 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.Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.