On January 1, Larkspur Corporation had 99000 shares of $10 par value common stock outstanding. On May 7, the company declared a 10% stock dividend to stockholders of record on May 21. The market value of the stock was $13 on May 7. The entry to record the transaction of May 7 would include a O credit to Cash for $128700. O credit to Common Stock Dividends Distributable for $128700. O credit to Common Stock Dividends Distributable for $29700. O debit to Stock Dividends for $128700.
Q: Required information [The following information applies to the questions displayed below.] Matt and…
A: Taxable income is the amount of the person's income that is taxed after all the deductions and…
Q: Blossom's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of…
A: Contribution Contribution is the difference between the sale price and variable cost. Decision under…
Q: equired: & 2. Prepare Supply Club's journal entry to record July and August sales. During August,…
A: Deferred Revenue Entries -Deferred revenue entries are needed in the journal to reflect the loyalty…
Q: Data concerning a recent period's activity in the Prep Department, the first processing department…
A: Process costing is uses where a product process through various stages, in process costing finished…
Q: Wang Corporation issued $4 million of commercial paper on March 1 on a nine-month note. Interest was…
A: The journal entries are prepared in the explanation section. Explanation:Journal entries : The…
Q: Beth decides to save $250 every month for the next five years so she can start a small baking…
A: The time value of money states the value of money changes over a period of time because of various…
Q: a) Kirpalani Limited wants to expand its furniture line. The board of directors have agreed that the…
A: Governments, corporations, and other organizations issue bonds to raise capital. When bonds are…
Q: Current Attempt in Progress Wildhorse Taxi Service uses the units-of-activity method in computing…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: ssssss
A: Answer a. Carrot's portion of Root Corp.'s operating loss is deductible on his first-year tax…
Q: Prepare a depreciation schedule by using the double-declining-balance method for the trucks.
A: The double declining depreciation method is commonly used to accelerate the recognition of…
Q: Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below: Sep sales, units…
A: PRODUCTION BUDGETProduction Budget is a Forecast of the Production for the Budgeted Period of an…
Q: The following selected transactions relate to liabilities of Chicago Glass Corporation for 2024.…
A: The journal entries are prepared in the explanation section. Explanation:Journal entries : The…
Q: Secure Home provides house-sitting for people while they are away on vacation. Some of its customers…
A: The objective of the question is to calculate the total service revenue Secure Home would have…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: The various methods for cost allocation are classified as direct, step and reciprocal method.Using…
Q: Work While reading the newspaper one day, you come across an article discussing the diversity…
A: The article talks about Kellogg's diversity strategy, which places a strong emphasis on appreciating…
Q: Foyert Corporation requires a minimum $6,300 cash balance. Loans taken to meet this requirement cost…
A: Budget means the expected value of future. Budget will be compared with actual value and variance is…
Q: Down Under Products, Limited, of Australia has budgeted sales of its popular boomeran the next four…
A: Lets understand the basics.Budget is an estimation of future profit and loss in the…
Q: Exotic furnishing Limited has a line of credit secured by the equity in the business the limit on…
A: The line of credit refers to a type of agreement between the bank and its customer. The customer can…
Q: Carri and Dane, ages 34 and 32, respectively, have been married for 11 years, and both are active…
A: Answer:- To help people save for the future, income earners can use individual retirement accounts…
Q: 5 6 Cost $20,000 Purchased equipment on January 1 of the current year. 7 Salvage value 8 Estimated…
A: Depreciation Expense is an expense incurred on the fixed assets of the company. Damages incurred due…
Q: ou have been provided with the following information for Division X of a decentralized company:…
A: The objective of this question is to determine the lowest price that Division X could accept from…
Q: Presley Supply Co. has the following transaction related to notes receivable during the last 2…
A: A journal entry is a record of a company's financial activities kept in its accounting books. The…
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the…
A: Variances is the amount of difference between the actual values and the values estimated by the…
Q: Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost The decision…
A: A special order is a one-time order that is received from not a regular customer. Special order…
Q: Exercise 9-32 (Algo) Unitwide versus Department Allocation-Decision Making (LO 9-1, 2, 3) The…
A: Cost allocation is the process of distributing expenses among different cost objects, such as…
Q: Lopez Company reported the following current-year data for its only product. The company uses a…
A: (a) Cost assigned to ending inventory: $3,188To determine this, we need to first calculate the…
Q: Liama MacDonald just turned thirty years old. She is currently single. Liama has gross wages of…
A: Withholding tax is considered as type of tax that is basically deducted by the payer of the…
Q: Please refer to the requirements and data tables to answer the operating income for 2020, then…
A: ChatGPTTo determine the operating income for Gaston Inc. in 2020 and calculate the per unit amounts,…
Q: efences According to its original plan, Franklin Consulting Services Company plans to charge its…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: njvvrrrr
A: See the answer in the explanation field.Explanation:Answer information:Step 1:a.Calculation of…
Q: Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $400,140 for real…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: You want a seat on the board of directors of Zeph, Incorporated The company has 300,000 shares of…
A: Total cost:The total cost refers to the overall cost of the production of the company which includes…
Q: Ferguson Theatres Inc. operates specialty film format theatres that display images of greater size…
A: The debt-to-equity ratio indicates the percentage of debt in the company as compared to the…
Q: S
A: Cuurent Ratio:One liquidity measurement used to assess a company's capacity to pay short-term debts…
Q: Ervin Company uses the allowance method to account for uncollectible accounts receivable. The…
A: Accounts receivable are the money that is owed by the customer or buyer from the business who has…
Q: In performing accounting services for small businesses, you encounter the following situations…
A: Accounting equationAs per the double-entry system, the transactions of business will affect two or…
Q: Show how to prepare journal entries
A: Process Costing is one of the methods of costing that is used in manufacturing firms where…
Q: sanju
A: To calculate the cost of goods sold (COGS) for 2024 using the LIFO method, we need to account for…
Q: McArthur Company has gathered the following data related to its production process of two of its…
A: The objective of the question is to identify which costs are allocated rather than traced. In cost…
Q: Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,040. The…
A: The depreciation under the double declining balance method depreciation is higher in the initial…
Q: In 2023, Carson is claimed as a dependent on his parents' tax return. His parents report taxable…
A: Tax liability:The amount of tax that is due to the federal government or tax authority is known as…
Q: Beth decides to save $250 every month for the next five years so she can start a small baking…
A: The time value of money states the value of money changes over a period of time because of various…
Q: Required Information [The following Information applies to the questions displayed below.] Sierra…
A: The cost of goods sold accounts for all expenditures and outlays immediately connected to the…
Q: Riverbed Co. is building a new music arena at a cost of $5,652,000. It received a down payment of…
A: The following journal entry shall be passed to record the bond retirement - DateAccount Titles and…
Q: Three grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a…
A: MATERIAL PURCHASE BUDGETMaterials Purchase Budget is the Budget that anticipates the total number of…
Q: In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was…
A: The amount of net income that a corporation keeps or invests in the company as opposed to paying…
Q: Compute depreciation under different methods. (LO 2) (a) (2) $14,000 P9-3B On January 1, 2020,…
A: Fixed assets such as plant and machinery are assets owned by a business for long-term use (more than…
Q: Home Stop sells two product categories, furniture and accessories. Information pertaining to its…
A: The lower cost of or market (LCM) rule is applied to record a loss due to a decrease in the value of…
Q: It is December 20X1. On May 1, 20X1, the 10% debentures with a principal amount of $400,000 were…
A: Earning per share:The earning per share is popularly known in short as the EPS which means the…
Q: Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. The company pays the dividend on December 14. What is the journal entry to record the payment of the dividend?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.
- 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?Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Nutritious Pet Food Companys board of directors declares a cash dividend of $5,000 on June 30. At that time, there are 3,000 shares of $5 par value 5% preferred stock outstanding and 7,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?
- 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.On April 2, West Company declared a cash dividend of $0.50 per share. There are 50,000 shares outstanding. What is the journal entry that should be recorded?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- 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?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.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.