15. ATC Company issued all of its outstanding shares for P150 in 2018. On January 10, 2019, ATC acquired 100,000 treasury shares at P120 per share. ATC reissued 50,000 treasury shares for P7,500,000 on June 30, 2020 and retired the rest on December 31, 2020. ATC’s equity accounts as at December 31, 2019 follow: Share capital, P100 par value P150,000,000 Share premium 75,000,000 Retained earnings 25,000,000 Total P250,000,000 What shall be the balance of share capital account on December 31, 2020? Group of answer choices P150,000,000 P140,000,000 P144,000,000 P145,000,000
Q: TJH Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price.
Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…
A: Balance in Funk Company’s Ordinary share account after the share split = No. of ordinary shares x…
Q: J Corporation issued 400,000 ordinary shares when it began operations in 2019 and issued an…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: ATC Company issued all of its outstanding shares for P150 in 2018. On January 10, 2019, ATC acquired…
A: No. of shares retired on December 31, 2020 = Total no. of treasury shares - shares reissued =…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: EPS means earnings available for each equity shareholder. Diluted EPS means when earnings of the…
Q: 1: Cyrell Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2019, the…
A: Introduction Retained earnings are the earnings that is left after dividend distribution to…
Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020
A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: Treasury stock represents the value of own shares that have been purchased by the entity.
Q: 28. On January 1, 2019, the statement of financial position of ABC Co. shows the following…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Marvel Inc. was incorporated on January 1, 2020. Information about its authorized shares is shown…
A: Stockholders' equity can be calculated by subtracting the total liabilities of a business from total…
Q: On December 31, 2020, Dow Steel Corporation had 700,000 shares of common stock and 310,000 shares of…
A: Introduction: Earnings per share denotes the fraction of a company's profits that is available to…
Q: On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share…
A: The allocation of aum sum issue amount is given by Ai = Mi/M * C Where Ai = amount allocated to…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Basic Earning Per share is Profit available for equity shareholders divided by Weighted no. of…
Q: On December 31, 2020, Dow Steel Corporation had 780,000 shares of common stock and 318,000 shares of…
A: The weighted average number of shares is the average sum of shares purchased during the period.
Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A:
Q: retained earnings?
A: Definition: Retained Earnings: It is the amount that is obtained after distribution of dividend to…
Q: TROPA Inc. was incorporated on January 1, 2020, Information about its authorized shares is shown…
A: Computation of the amount of total shareholders equity as of December 31 2020 is :
Q: On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a…
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…
A:
Q: On January 1, 2020, ABC Co. acquired 50,000 of its 30 par ordinary shares and held them in treasury.…
A: The issued shares remains constant until the shares are retired or new shares are issued.
Q: At December 31, 2020, the balance sheet of J.R. International included the following shareholders'…
A: Date Account Titles and Explanation Debit Credit Jan'15 Treasury Stock (12,000 shares X $ 17 per…
Q: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…
A: 1. Total No. of shares issued = 40,000 shares Value of Shares = 40,000 Shares x P100 = P4000,000…
Q: BananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Share premium refers to the excess amount received over the par value of the shares on the issue of…
Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…
A: Earnings per share = (Net income - Preferred dividend) / weighted-average number of shares…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Share premium from Jan. 12 transaction = (Issue value per share - par value per share) x no. of…
Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Compute the basic and diluted earnings per share for the year ended December 31, 2021: Compute the…
Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…
A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 700 million…
A: Basic earnings per share = ( Net income - Preferred dividend ) / weighted average number of shares
Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…
A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…
Q: ABC Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, ABC Company…
A: Given that, The net income of ABC Company for 2020 is P8,550,000 ABC Company had 600,000 ordinary…
Q: The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its…
A: Treasury shares are the shares of the own company that are repurchased from the market for resale or…
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: difference in repurchase price and issue price are transferred to additional paid in…
Q: ATC Company issued all of its outstanding shares for P150 in 2018. On January 10, 2019, ATC acquired…
A: Calculations 1 Balance of Share Capital Account on 31 Dec 2019 150,000,000 2 Par value…
Q: What is the weighted-average number of shares outstanding for 2020?
A: Stock Dividends and Stock splits:- When Stock Dividend or stock split occurs, the company needs to…
Q: On December 31,2020, the shareholders' equity section of DEF, Inc. was [Ordinary Share Capital, par…
A: The retained earnings of the business includes the net income or loss earned, dividend declared,…
Q: Pluto Company began operations on January 1, of 500,000 preference shares of P5 par value of which…
A: Contributed Capital is the amount a company receives on the account of issue of common and preferred…
Q: On December 31, 2020, Dow Steel Corporation had 740,000 shares of common stock and 314,000 shares of…
A: Dow's basic earnings per share Dow's diluted earnings per share
Q: ananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a…
A: Solution Given Number of authorized shares 400000 Jan 5 issued 225000 shares July 28…
Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…
A: A share is the division in the capital of the company. A shareholder is entitled to receive division…
Q: Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained…
A: Solution: Amount should be credited to share capital on issuance = Nos of shares issued * Par value…
Q: he accounts from the shareholders' equity section of the balance sheet of Western Company showed the…
A: Given Information: Ordinary shares P475,000 Share premium P6,650,000 Retained earnings…
Q: The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: The balance of Arndt’s retained earnings as of March 31, 2020, should be
A: Given that: Balance of Retained Earnings = P154,000 Value of additional shares as dividend = 900*18…
Q: What is the weighted-average number of shares outstanding for 2020? *
A: Stock Dividends and Stock splits:- When Stock Dividend or stock split occurs, the company needs to…
Q: On December 31, 2019, LBC Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020,…
A: Earnings per share indicates the net income of the firm after preferred dividend which is available…
Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…
A: Net Income $2,100,000 Less: preferred dividend $75,000 Profit available $2,025,000…
Q: ABC Company had 600,000 ordinary shares outstanding on January 1, 2020. During 2020, ABC Company…
A: ESP is the formula used by financial management to determine the earnings per share generated by the…
Q: In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the…
A: Buyback of shares - it means when the company buybacks its own holdings that was earlier subscribed…
Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…
A: Stock dividend is declared when the company wants to enhance its shareholders' wealth or to praise…
15.
Share capital, P100 par value |
P150,000,000 |
Share premium |
75,000,000 |
|
25,000,000 |
Total |
P250,000,000 |
What shall be the balance of share capital account on December 31, 2020?
Step by step
Solved in 2 steps
- 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.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?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.
- 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?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.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?
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.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.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.
- 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.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.Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.