Pearl Company had the following stockholders' equity as of January 1, 2020.Common stock, $5 par value, 21,100 shares issued$ 105,500Paid-in capital in excess of par-common stock304,000Retained earnings317,000Total stockholders' equity$726,500During 2020, the following transactions occurred.Feb. 1Pearl repurchased 2,020 shares of treasury stock at a price of $ 21 per share.Mar. 1740 shares of treasury stock repurchased above were reissued at $ 19 per share.Mar. 18520 shares of treasury stock repurchased above were reissued at $ 14 per share.Apr. 22550 shares of treasury stock repurchased above were reissued at $ 23 per share. Prepare the journal entries to record the treasury stock transactions in 2020. assuming Pearl uses the cost method. (Creditaccount titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCreditMar. 1Mar. 18

Treasury stock is a method used by the organization to repurchase the issued stock. It is also known…

Answered: Pearl Company had the following…

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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On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3%…
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 100,000 shares authorized,45,000 shares issued and outstanding $ 1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,585,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the…
At the end of 2019, Haley Corporation had the following equity accounts and balances: Common stock, $10 par $800,000 Additional paid-in capital-common stock 200,000 Retained earnings 279,000 During 2020, Haley engaged in the following transactions involving its equity accounts: a. Sold 5,000 shares of common stock for $19 per share. b. Sold 1,200 shares of 12%, $50 par preferred stock at $75 per share. c. Declared and paid cash dividends of $22,000. d. Repurchased 1,000 shares of treasury stock (common) for $24 per share. e. Sold 300 of the treasury shares for $26 per share. Required: 1. Prepare the journal entries for Transactions a through e. 2. Assume that 2020 net income was $123,700. Prepare a statement of stockholders' equity at December 31, 2020.
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding - Paid in capital in excess of par value, common stock ...$3,000,000 ....400,000 900.000 -Retained earnings.......... Total $4,300,000 The Corporation completed the following transactions in 2021. - Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. Mar. 01, Purchased 30,000 shares of its own common for $15 per share. Mar. 31, Paid the cash dividend declared on Jan. 10. - May 01, Sold 10,000 of its treasury shares at $15 cash per share. - Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. Nov. 01, Distributed stock dividends declared on Sep. 30. . Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for…
On January 1. 2018 Manama Company has 8% 80.000 shares of $10 par value, Cumulative preferred stock and 140.000 shares of common stock authorized, issued and outstanding at $5 par value The Company declared and paid cash dividends as follows Dividends $50,000 $110.000 $190,000 Year 2018 2019 2020 Required: In the below table determine the amount of cash dividends distributed to each class of shares over the three vears Please: Present each year in a separate line. For the toolbar, press ALT+F10 (PG) or ALT+FN-F10 (Mac).
Presented below is the shareholders’ equity of ABC Company on January 1, 2020. Share capital, par value P20authorized 50,000 shares; issued and outstanding, 30,000 shares 600,000Share premium 150,000Retained Earnings 230,000 During 2020, the following transactions occurred relating to shareholders’ equity: - 1,000 shares were reacquired at P28 per share- 900 shares were reacquired at P30 per share- 1,500 shares of treasury were sold at P32 per shareFor the year ended December 31, 2020, ABC reported net income of P110,000.What should be reported as total shareholders’ equity on December 31, 2020?
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 10,000 shares outstanding Retained earnings Treasury stock, at cost, 5,000 shares During 2021, Fascom Inc. had several transactions relating to common stock. $ 250,000 500,000 100,000 1,000,000 2,000,000 25,000 January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April July December 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per…
ANSWER IN 20 MINUTES On January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,080,000. The company issued 250,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $500,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
The stockholders' equity of Bonita Industries at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 170000 shares $3400000 Paid-in capital in excess of par 156000 Retained earnings 642000 $4198000 On August 1, 2021, the board of directors of Bonita declared a 16% stock dividend on common stock, to be distributed on September 15th. The market price of Bonita's common stock was $68 on August 1, 2021, and $74 on September 15, 2021. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend? a. $1849600. b. $1020000. c. $2012800. d. $1305600.
Holiday Corporation had the following stockholders' equity amounts on their balance sheet on December 31, 2020 (the end of their 8th year of business): Common Stock, $10 par, 1,000,000 shares authorized, shares outstanding shares Issued, $2,300,000 Paid in Capital in Excess of Par- Common ৪,400,000 10,000 Paid in Capital from Treasury Stock Accumulated Other Comprehensive Income 160,000 Retained Earnings 5.321.000 Total Stockholders' Equity $16,191,000 During 2021, Holiday completed the following transactions: Sold 24,000 shares of common stock for $52 per share in cash. Purchased 12,000 shares of our own company stock for cash when the price March 1 June 1 dropped to $47 per share. Holiday plans to resell the shares when the price goes back up. November 1 Resold 3,000 of the shares from June 1 at $53 per share December 1 Declared a $0.50 per share cash dividend December 31 Reported $600,000 of net income Answer the following questions. Please show and label your work. a. How many…
Bramble Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $283,000 net loss 2019 $36,000 net loss 2020 $746,000 net income At December 31, 2020, Bramble Inc. capital accounts were as follows. 9% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,300 shares $530,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 758,000 shares $758,000 Bramble Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Bramble began operations. The state law permits dividends only from retained earnings.(a) Compute the book value of the common stock at December 31, 2020. Book value per share $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places (b) Compute the book value of the common stock at December 31,…
Careful Carol's Creamy Crumpets had 200,000 shares of common stock outstanding at 12/21/2020. On April 1, 2020, the company issued an additional 50,000 shares. On July 31, 2020, the company repurchased 10,000 shares as treasury stock. On November 30, 2020, the company declared 5% stock dividend. The company reported net income for 2020 of $257,000. a. Compute basic earnings per share (EPS) The following additional information is available: Stock Options: The company had 30,000 stock options outstanding that were exercised throughout the period at a strike/exercise price of $13 per share. The average market price of the company's stock during 2020 was $10 per share. Convertible bonds: The company has $350,000 of 6% convertible bonds outstanding which was outstanding throughout the year. The bonds are convertible into 20,000 shares of the company's stock. The company's tax rate is 25%. b. Compute diluted earnings per share Show all work fully lablel

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