Exercise 18-10 (Algo) Retirement of shares [LO18-5] Borner Communications' articles of incorporation authorized the issuance of 125 million common shares. The transactions described below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: Shareholders' Equity Common stock, 110 million shares at $1 par Paid-in capital - excess of par Retained earnings ($ in millions) $ 110 330 220 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 1. On January 7, 2024, Borner reacquired 4 million shares at $6.00 per share. 2. On August 23, 2024, Borner reacquired 6 million shares at $3.50 per share. 3. On July 25, 2025, Borner sold 5 million common shares at $7 per share.

Exercise 18-10 (Algo) Retirement of shares [LO18-5] Borner Communications' articles of incorporation authorized the issuance of 125 million common shares. The transactions described below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: Shareholders' Equity Common stock, 110 million shares at $1 par Paid-in capital - excess of par Retained earnings ($ in millions) $ 110 330 220 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 1. On January 7, 2024, Borner reacquired 4 million shares at $6.00 per share. 2. On August 23, 2024, Borner reacquired 6 million shares at $3.50 per share. 3. On July 25, 2025, Borner sold 5 million common shares at $7 per share.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...

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Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
n Problem 21-2 (ACP) the following issuance of equity shares: At the beginning of current year, Alegro Company reported 200,000 shares at P20 250,000 shares at P25 shares was a. The share has a P15 par value. b. The share is no par with stated value of P20. per share. at P20, and these shares were reissued at year-end at P25 During the current year, the entity reacquired 50,000 shares Required: assuming: Prepare journal entries to record the foregoing transactions 745 4,000,000 6,250,000
uhe beginning of current year, Jade Company reported the following sharcholders' equity: Share capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 8,100,000 ( 900,000) All of the outstanding and treasury shares were originally issued for PIl per share. During the current year, the following events or transactions occurred relating to shareholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April 1 and payable on April 15. This was the first dividend ever declared. • September 15- The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of PO.20 per share payable carly next year. * Atcurrent year-end, the entity is being sued by two separate parties for…
Exercise 18-10 (Static) Retirement of shares [LO18-5] Borner Communications' articles of incorporation authorized the issuance of 130 million common shares. The transactions described below.effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: Shareholders' Equity Common stock, 100 million shares at $1 par Paid-in capital excess of par Retained earnings ($ in millions) $100 300 210 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares). record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On January 7, 2021, Borner reacquired 2 million shares at $5 per share. 2. On August 23, 2021, Borner reacquired 4 million…
Problem 18-5 (Algo) Shareholders' equity transactions; statement of shareholders' equity; financial statement effects [LO18-6, 18-7, 18-8] Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 112,000 672,000 910,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2025, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been…
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Checl below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: Shareholders' Equity Common stock, 100 million shares at $1 par Paid-in capital Retained earnings ($ in millions) $100 300 210 excess of par Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (I.e., 10,000,000 should be entered as 10).) 1. On January 7, 2021, Borner reacquired 2 million shares at $5 per share. 2. On August 23, 2021, Borner reacquired 4 million shares at $3.50 per share. 3. On July 25, 2022, Borner sold 3 million common shares at $6 per share. 獲, View transaction Iist View Journal entry worksheet No Date General Journal…
Problem 16-12 (AICPA Adapted) Maxim Company acquired 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% ordinary share dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 c. 500,000 d. 600,000
Problem 21-3 (AICPA Adapted) Amaze Company reported the following information at year-end: Ordinary shares outstanding Nonconvertible preference outstanding shares 10% convertible bonds payable- face amount 1,000,000 1,000,000 2021 2020 360,000 10,000 300,000 10,000 The entity provided the following additional information: On September 1, 2021, the entity sold 60,000 additional ordinary shares. Net income for the year ended December 31, 2021 was P6,700,000. %23 During 2021, the entity paid dividends of P30 per share on the nonconvertible preference share. The 10% convertible bonds are convertible into 40 ordinary shares for each P1,000 bond. Unexercised share options to purchase 30,000 ordinary shares at P20 per share were outstanding at the beginning and end of 2021. %23 The average market price of ordinary share was P30 during 2021. The market price was P40 on December 31, 2021. Warrants to purchase 20,000 ordinary shares at P45 per share were attached to the preference share at the…
nts CFAS Company showed the following information from its shareholders' equity at year-end before the effect of the transaction below: Ordinary share capital P6,250,000 Share premium 3,125,000 Retained earnings 3,724,000 Treasury shares (at cost) 1,530,000 The ordinary shares were originally issued for P187.50 per share. At the end of the year, CFAS Company retired 5,100 shares held in treasury. The treasury shares had a P125 par value per share and an average cost per share of P300. (Input your answers as figures, do NOT put any comma, peso sign or extra spaces. E.g. if your answer is one thousand, please input 1000): 1. How much is the adjusted ordinary share capital at year end? 2. How much is the adjusted share premium at year end? 3. How much is the adjusted balance of retained earnings at year end?
Exercise 19-24 (Algo) New shares; contingently issuable shares [LO19-6,19-12] During 2024, its first year of operations, Kevin Berry Industries entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 100 million common shares, $1 par per share. January 2 Issued 55 million common shares for cash. January 2 Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2025 based on the earnings of Berry in 2025. If net income exceeds $140 million, the president will receive 1 million shares; 2 million shares if net income exceeds $150 million. March 31 Issued 4 million shares in exchange for plant facilities. Net income for 2024 was $148 million. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Basic Diluted Numerator + +…