28. On January 1, 2019, the statement of financial position of ABC Co. shows the following information: Share capital (authorized 10,000 shares with par value of P100) 800,000 Share premium 160,000 Retained earnings 540,000 Total shareholders’ equity 1,500,000 On July 1, 2019, ABC reacquires 1,000 shares at P90. If ABC will reissue the shares for P140 each, how much will be the increase/decrease in Share premium?
Q: The only difference in the computation of EUP between the FIFO and weighted average method is the…
A: process costing ,mainly in manufacturing where units are continuously produced on a large amount and…
Q: During the current year, XYZ Corporation had the following activities related to financial…
A: Cash flow from Financing activities includes the transactions relating to the loan/debt,…
Q: 6. Contracting company plans to update its equipment so that its trucks are replaced after five…
A: As per the concept of time value of money the worth of money changes with passage of time because…
Q: Is this correct
A: Amounts are transferred or recorded into respective ledger accounts is the activity which are…
Q: 27 The entry to close the Dividends account at the end of an accounting period which has a balance…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Q1: A company sells 280,000 units annually, at a price of (65 $/unit). The company wanted to explore…
A: Profit of the company depends on the variable cost and fixed cost and the amount of sales and the…
Q: Yani Inc. is a wholly owned subsidiary of Pakito Corporation. The following are excerpts from the…
A: Calculation of Gross Profit Margin % of Pakito Corp: =P750,000/(P2500,000 + P500,000) * 100 =30%
Q: Selected information from the separate and consolidated statements of financial position and…
A: Based on the given information, The amount of intercompany sales from Pau de Arco to Kati Alis is…
Q: Woodridge USA Properties, L.P., bought eighty-seven commercial truck trailers from Southeast Trailer…
A: Damages are essentially monetary awards that must be given to the individual who has been hurt or…
Q: Multiple choice: a benefit of using an accelerated depreciation method is that a. it is preferred…
A: Accelerated depreciation method is a type of depreciation method in which the fixed assets are…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: Investment in accounting means that the asset or the item which is acquired with the objective of…
Q: Tyeso Company has the following accounts in its liabilities section of the Balance Sheet as of…
A: CURRENT LIABILITIES ARE THOSE LIABILITIES WHICH ARE EXPECTED TO BE PAID WITHIN NORMAL OPERATING…
Q: Compute for the variances of the problem using the information given. Answer the numbers only up to…
A: Here, the standard cost has been used for the calculations. However, for labor rate variance…
Q: Ellington, SRL is developing their manufacturing overhead budget for February, which is based on…
A: The manfacturing overheaf budget is the budget that is prepared for the manufacturing overhead. In…
Q: The following breakdown of the MNO Corporation's property, plant and equipment and bonds payable is…
A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: Investment in accounting means that the asset or the item which is acquired with the objective of…
Q: On December 31, 2022, Funny retired 20,000 shares of P30 par value ordinary shares held in treasury…
A:
Q: Question 1. In the North American automotive markets, Toyota and Honda are two of the big players.…
A: Break Even point - Break Even Point is where a company recovers its variable and fixed costs. It is…
Q: PT Silver King uses a revaluation model for one class of equipment it uses for its gold cane…
A: Here discuss about of the valuation of equipment using cost model and revaluation model as well.…
Q: How did you get the loan repayment and bank loan?
A: In question it is mentioned that the bank requires a minimum balance of $8,200 be kept in the…
Q: CONT DE ON NEXT PAG QUESTION 4 Nano Ltd. manufactures three different types of electric kits for…
A: As per the norms of Bartleby, in case of Multiple sub parts been asked, expert can answer to only…
Q: McDo Co. reported the following amounts in the shareholders’ equity section of its December 31,…
A:
Q: On January 1, 20x1, an entity purchased marketable equity securities for P2,500,000. The entity paid…
A: As per PFRS 9, Financial instrument, If the equity instrument is designated as fair value through…
Q: The quick ratio is 2.50 while the current ratio is 3.00. The only items presented as current assets…
A: >Financial ratios are the analysis ratios used to analyze the Financial Statement data.…
Q: P Incorporated purchased 80% of The S Company on January 2, 2014, when S's book value was $800,000.…
A: A non-controlling interest, also known as a minority interest, is an ownership position wherein a…
Q: One proposal for reforming the welfare system is to create a negative income tax. Under the negative…
A: Budget constraint means the maximum amount of money that will end up in the hands of the person who…
Q: LORY SPRING WATER dispenses its product Natural Pure Water via vending machines with most current…
A: Breakeven point is that level of sales at which there is no profit no loss. At this level…
Q: 3. Julia buys a notebook with a cost of PhP45. The rate of mark-up based on cost is 25%. Find the…
A: >Markup is the amount added to the cost to get the selling price. >It can be based on selling…
Q: what is the ending balance of the noncontrolling interest in the subsidiary?
A: The determination of the ending balance of non controlling interest in the subsidiary is shown…
Q: E The statement of financial position of L, M, and N just before liquidat shows the following Cash P…
A: >In the event of dissolution of a partnership, the following steps are taken for payment:[1] Non…
Q: Adams Air is a large airline company that pays a customer relations representative $6,000 per month.…
A: Given, Total cost of representative for a month=$6,000 per month Total number of customers…
Q: An activity based costing system is being considered at Evelia, nv to assign products overhead…
A:
Q: Yani Inc. is a wholly owned subsidiary of Pakito Corporation. The following are excerpts from the…
A: Calculation of Gross Profit % of Pakito Corp. = 750,000 / (2,500,000)*100 =30%
Q: On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any…
A: The bonds issued are recorded as bonds payable and these represent the long-term liabilities. When a…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: The net income increases the value of the retained earnings. Whereas, the dividend decreases the…
Q: For three years Chona's Merchandise failed to recognize accruals, prepayments and other transactions…
A: Adjusted amounts are the one which are required to be added or subtracted in the financial…
Q: Convert these comparative balance sheets to common size statements. Using the common size…
A: Balance sheets of Ithaca Inc. for the 2 years 2016 & 2017 are given to us. When comparing the…
Q: Peta, SA manufactures a single product that had the following cost structure this year: Variable…
A: Valuation of ending inventory under variable costing only considers the variable manufacturing cost…
Q: True or False 1. A continuous lost is assumed to occur at a specific point in the production 2.…
A: process costing is associated with the units that are produced by using multiple process. in…
Q: 4. A private university professor who receives a basic monthly salary of P80,000.00, a living…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2. The income tax payable of Company E were $10,000 and $15,000 for the years ended 2020 and 2019,…
A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…
Q: CLV1: Calculate the customer lifetime value for the first 5 years of the relationship if the annual…
A: Annual Profit contribution: For first 3 years = $500 per year For last 2 years = $500 x 80% = $400…
Q: 0 46000 Net annual cash inflow 110000 146000 Estimated useful life 5 years 6 years…
A: Net Present Value is the Present value of cash inflows less initial investment . Initial Investment…
Q: Selected information from the separate and consolidated statements of financial position and…
A: The amount of intercompany sales from Pau de Arco to Kati Alis during 20X9 is…
Q: EUP calculations are necessary to allocate product costs between units sold and ending work in…
A: process costing ,important product costing method that are used in the manufacturing company that…
Q: What is the total balance of SHAREHOLDERS' EQUITY as of December 31, 2020
A: Shareholders' equity as of December 31, 2020 is calculated with the help of following worksheet:…
Q: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…
A: For calculation of interest with compounded interest= Principal amount (1+r)n - principal amount…
Q: Annual cash inflows that will arise from two competing investment projects are given below: Year…
A: The difference between both the present value of future cash inflows and the present value of future…
Q: True or False 1. The EUP will be the same under FIFO method and weighted average method if there is…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: echnical & Ethical Issues with Tax Sky recently spoke to her father who is an experienced…
A: Here asked for multi question we will solve for first question for you as per Q/A guidelines. If you…
28. On January 1, 2019, the
Share capital (authorized 10,000 shares with par value of P100) 800,000
Share premium 160,000
Total shareholders’ equity 1,500,000
On July 1, 2019, ABC reacquires 1,000 shares at P90.
If ABC will reissue the shares for P140 each, how much will be the increase/decrease in Share premium?
29. Using the same information from the previous number but this time the treasury are reissued at P60 each, how
much will be the increase/decrease in retained earnings?
30. Using the same information in number 28 but this time the shares will be retired, how much will be total share
premium immediately after the retirement?
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.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Frost 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.
- 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.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.
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?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.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.
- 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.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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?