help me Loco Ltd has sought your assistance with recording some transactions it undertook in the financial year to June 30, 2022.At the start of the financial year, the entity's retained earning balance was $67.8 million, while its share capital, which comprised solely ofordinary shares with a par value of $0.70 each, amounted to $336 million.At the end of its first quarter, the entity declared and paid dividends of three cents per share. Shortly after this dividend declaration, onDecember 1, 2022, it undertook a rights issue of two shares for every five held at $0.95 per share. This was followed two months later by abonus issue of one share for every seven held. The entity's policy in relation to equity restructuring is to preserve retained earnings insofar as ispossible.Required:Prepare the journal entries for each of the three adjusting equity transactions outlined above, supported with the necessary workings. You arerequired to show the number of shares in issue before each transaction takes place.

Right Issue : A right issue is an offer of equity shares in a further issue of shares by a company…

Answered: Loco Ltd has sought your assistance…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) S Carrying value per share 3.Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port. Equity 8.42 decreases by S 144.800
Son Toco Ltd has sought your assistance with recording some transactions it undertook in the financial year to June 30, 2022. At the start of the financial year, the entity's retained earning balance was $61.3 million, while its share capital, which comprised solely of ordinary shares with a par value of $0.80 each, amounted to $324 million. At the end of its first quarter, the entity declared and paid dividends of four cents per share. Shortly after this dividend declaration, on December 1, 2022, it undertook a rights issue of two shares for every five held at $1.15 per share. This was followed two months later by a bonus issue of one share for every seven held. The entity's policy in relation to equity restructuring is to preserve retained earnings insofar as is possible. Required: Prepare the journal entries for each of the three adjusting equity transactions outlined above, supported with the necessary workings. You are required to show the number of shares in issue before each…
On January 1, 2021, Eugene Co. had retained earnings of P1,240,000. During 2021, the co. earned net income of P456,000. The following transactions occurred:a. Cash dividends of P12 per share on 42,000 shares of ordinary shares were declared and paid.b. A small share dividend was declared and issued. The dividend consisted of 6,620 shares of P25 par ordinary share. On the date of declaration, the market price of the company’s ordinary share was P34 per share.c. The co. recalled and retired 12,100 shares of P50 par preferred share. The call price was P93 per share; the share had originally been issued for P80 per share. d. The Eugene discovered that it had erroneously recorded depreciation expense of P200,000 in 2019 for both financial and tax reporting. The correct depreciation for 2019 had been P275,000. This is considered a material error. Assume tax rate of 25%. The balance of retained earnings on December 31, 2021:
Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and paid dividends of P150,000 in 2021 and P300,000 in 2020. In the financial statements for the year ended December 31, 2020, the entity reported retained earnings of P1,500,000 on January 01, 2020. The net income for 2020 was P600,000. In 2021, after the 2020 financial statements were approved for issue, the entity discovered an error in the December 31, 2021 financial statements. The after-tax effect of the error was P420,000 understatement of net income for the year ended December 31, 2020 due to over-depreciation. What amount was reported as retained earnings on December 31, 2020? 1,200,000 1,800,000 1,500,000 2,400,000
Central Avenue Company reported net income of P700,000 for the year 2021. The entity declared and paid dividends of P150,000 in 2021 and P300,000 in 2020. In the financial statements for the year ended December 31, 2020, the entity reported retained earnings of P1,500,000 on January 01, 2020. The net income for 2020 was P600,000. In 2021, after the 2020 financial statements were approved for issue, the entity discovered an error in the December 31, 2021 financial statements. The after-tax effect of the error was P420,000 understatement of net income for the year ended December 31, 2020 due to over-depreciation.What amount should be reported as retained earnings on December 31, 2021? 3,370,000 1,930,000 2,570,000 2,530,000
At the beginning of its fiscal year on April 1, 2018, Extra Vienna Oil Corp, had a balance of $4,740.000 in its retained earnings account. The company generated its highest net income ever of $4,150,750, so it paid large dividends of $975,000 and $750,000 to its preferred and common shareholders, respectively. Required: Prepare the March 31, 2019 (fiscal year end) retained earnings statement for Extra Vienna Oil Corp.
Helio Co. has retained earnings at the beginning of the current year of $400,000. During the current year net income of $70,000 was earned, and a cash dividend of $1.00 per share was declared and paid on the 50,000 shares of common stock outstanding. Prepare a statement of retained earnings as of the end of the current year.
The Harbinger Corporation reported net income of $6 million and total assets of $7 million in its current financial statements. During the year, their average number of common shares outstanding was 3 million. The current price of a share of its common stock is $5. The Harbinger Corporation’s earnings per share for the current year is approximately:
On January 1, 2024, Accustart Corporation had 84,000 common shares, recorded at $659,400, and retained earnings of $1 million. During the year, the following transactions occurred: Apr. 2 June 15 Aug. 21 Nov. Dec. 20 (a) Issued 5,000 common shares at $20 per share. Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10. Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $22 a share on August 21, $24 on September 5, and $27 on September 20. Issued 2,900 common shares at $24 per share. Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10. Your answer is partially correct. Record the above transactions for 2024. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is…
f) On January 1, 2022, Fall Company leased some equipment for $250,000. They made the first of five payments of $57,976 on that day. The bookkeeper incorrectly recorded the transaction as follows on January 1: $57,976 Lease expense Cash $57,976 g) Accrue annual interest expense on the lease in (f) at 8%. h) Amortize the lease in (f) over five years.
Fall Corporation's capital structure consists of 500,000 authorized shares of common stock, of which 100,000 have been issued and are still outstanding. At December 31, 2022, an analysis of the accounts and discussions with company officials revealed the following information: Accounts payable...... Accounts receivable (trade accounts). Accumulated depreciation..... Accumulated other comprehensive income. Allowance for uncollectible accounts. Amortization expense.. Cash....... Common stock ($1 par value) Cost of goods sold Deferred revenue.. Depreciation expense. Dividend revenue.. Fair value adjustment (trading securities - debit balance). Gain on investments (Unrealized, NI).... General and administrative expenses. Interest expense... Interest payable..... Inventory, December 31, 2022. Investments in trading securities (cost)... Land held for future plant site.... 4% Notes payable (maturity 7/1/26 - $40,000 due July 1, 2023)... Paid in capital in excess of par.. Patents...... Pension…
The Dec. 31, 2021 balance sheet of Jasmine Corp. showed shareholders' equity of P448,700. Transactions during 2021 which affected the shareholders' equity were: (1) an adjustment to Retained Earnings for an overstatement of depreciation in 2020 P10,000; (2) gain on the sale of treasury shares, P9,000; (3) declared dividends of P60,000 of which P40,000 were paid during the year; and (4) net income after tax of P75,500. The share capital balance of P300,000 remain unchanged during the year. The retained earnings balance on Jan. 1, 2020 was a. P134,200 b. P132,300 c. P123,200 d. P114,200

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