n May 12, 20,000 preference shares were converted to ordinary shares. n June 9, 15,000 shares were subscribed for a total amount of P175,000 n July 4, a 2 for 1 share split was affected for the ordinary share.
Q: On Jan. 1, 2018, the following accounts and their balances appeared in the ledger of the Fuentes…
A:
Q: Montana Company was authorized to issue 80,000 shares of common stock. The company had issued 27,000…
A: Calculate the number of shares outstanding as follows: Outstanding shares = Issued shares - Treasury…
Q: Jackson Corporation was authorized to issue 20,000 shares of $50 par value ordinary shares and 3,000…
A: Treasury Stock: It is the reacquired stock , that issuing company buy back its outstanding stock…
Q: ALI Company issued 120,000 ordinary shares, of which 5,000 shares were held as treasury on January…
A: The stock split is a method of decreasing par value and increasing the number of shares. On the…
Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $11 par…
A:
Q: Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100…
A: The entry for preferred stock issued Date Particular Debit ($) Credit ($) Dec 31 Cash 20,000…
Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Eacha nd…
Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…
A: Shares refer to the market security that the company issue to raise funds from the market by…
Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 320,000 shares of $10 par…
A: Common shares (Transaction 1)=Number of shares×Par value=20,000×$10=$200,000
Q: Bridgeport Corporation was organized on January 1, 2022. It is authorized to issue 15,000 shares of…
A: The shareholders' equity section records the shares issued to shareholders and other retained…
Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…
A: Shares of the company can be issued at par value or value more than par value or less than par…
Q: On 30 April, MBC Company issued 60 000 shares for $12 each, payable $4 on application, $4 on the…
A: Share Issued = 60,000 shares Share Subscribed = 60,000 - 10,000 = 50,000 shares Share Application…
Q: ingra Corporation was organized in March. It is authorized to issue 600,000 shares of $100 par value…
A: journal entries: Date particulars Debit Credit Mar 1 Cash [10,000 x $115] $1,150,000…
Q: Ayayai Corporation was organized on January 1, 2022. It is authorized to issue 10,000 shares of 8%,…
A: Issue of shares is one of the important source of capital and finance being used by the business.…
Q: On December 1, DOS Corporation issued 1,000 shares of its par ordinary share capital and 2,000…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…
A: Journal is the book where transactions are originally recorded. Journal entry: A journal entry is…
Q: ALI Company issued 120,000 ordinary shares, of which 5,000 shares were held as treasury on January…
A:
Q: On October 3, Valley Clothing Inc. reacquired 10,000 shares of its common stock at $9 per share. On…
A: Working Notes: Treasury stock=Number of shares×Per share=10,000×$9=$90,000
Q: Paris Co. has a December 31 year-end date. Data for 2021 shows: • There were 60,000, $3, cumulative…
A: Number of common shares Common shares as on January 1 370000 Shares issued 60000 Less; shares…
Q: Below are the accounts shown in the December 31, 2020 trial balance Preference shares, P50 par,…
A: The difference between the stock's par value and the actual price paid by the investor is known as…
Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…
A: The journal entries are prepared to keep the record of day to day transactions of the business of…
Q: CFAS Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…
A: share premium account is created when there is the difference in the par value or face value of the…
Q: Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000…
A: Paid in capital excess of par- preferred stock on January 2 nd = 5000 shares ×$10 = $50000
Q: At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 217,600…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Wingra Corporation was organized in March. It is authorized to issue 550,000 shares of $100 par…
A: Journal Entries: Journal entries are the building blocks of accounting, which is the act of…
Q: ALI Company issued 120,000 ordinary shares, of which 5,000 shares were held as treasury on January…
A: Total shares outstanding on Nov. 15 = Total shares issued - Treasury stock + Shares issued = 120000…
Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: Preference share dividend: The cash dividends that a corporation pays out to its preferred…
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: Share issue The purpose of issue of shares to raise the capital fund which are needed for the…
Q: Acer Inc. organized on June 1,2009, was authorized to issue shares as follows: 9%, 800,000, P100…
A: Equity: It is the amount shareholder invested in the company. This is the difference between total…
Q: JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000…
A: Working notes 1) assuming that all forfeited amount must be refunded as per Constitution without…
Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: On February 14, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On…
A: Treasury stock is the reacquired shares by the company. The company has the right to reissue these…
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: No. of Preference shares outstanding = Outstanding Shares - Shares Converted into the common share +…
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: equity dividend= total dividend paid-preference dividend
Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…
A: Share premium is the amount received on issue of shares above par value.
Q: Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $ 100 par…
A: The journal keeps the record for day to day transactions of the business. The shares issued at…
Q: Sunland Corporation was organized on January 1, 2022. It is authorized to issue 9,600 shares of 8%,…
A: The journal keeps the record for day to day transactions of the business on regular basis.
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: It must be known that total dividend includes preference dividend and equity dividend. In terms of…
Q: Oikawa Corporation has 150,000 Ordinary Shares authorized. As of January 1, 2020, 100,000 shares…
A: Treasury shares are bought by the company itself and therefore these shares are not included in the…
Q: e. On May 12, 20,000 preference shares were converted to ordinary shares. f. On June 9, 15,000…
A: Convertible is the option to convert the preferred stock to common stock at pre-agreed ratio
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: preference dividend=No of preference shares*par value per share*coupon rate*period outstanding/12
Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $11 par…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On March 1, 20x5, Ria Corporation has 200,000 shares of P10 par Ordinary Shares outstanding and the…
A: A reverse stock split is the process of consolidating two or more shares into one. Under this…
Q: Darren Company had 600,000 ordinary shares outstanding on January 1, issued 120,000 shares on May 1,…
A: Weighted average number of shares outstanding is the sum of all outstanding shares multiplied by the…
Q: Wingra Corporation was organized in March. It is authorized to issue 550,000 shares of $100 par…
A: When shares are issued , amount received in excess of par value will be credited to Paid in Capital…
Q: Journalize the transactions of February14, March 5, and June 2.
A:
Q: Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000…
A: When stock is issued at a price higher than the par value, they are said to be issued at premium.…
Q: On July 4, a 2 for 1 share split was affected for the ordinary share. h. On August 8, the company…
A: New Stock issued in exchange of old stock so as to increase the number of outstanding stock…
Q: On January 1 of the current year, Wick Company had 200,000 outstanding P100-par 12% convertible…
A: Preferred shares are those shares the holder of which are entitled to receive dividend before common…
1.
Step by step
Solved in 3 steps
- The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.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?Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
- 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?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.
- Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.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.Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
- Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 2019.James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.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.