Stanley Department Stores reported net income of $986,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 150,000 Incentive stock options (vested in 2023) outstanding throughout 2024 36,000 (Each option is exercisable for one common share at an exercise price of $29.00) During the year, the market price of Stanley’s common stock averaged $34.80 per share. On August 30, Stanley sold 15,000 common shares. Stanley’s only debt consisted of $48,000 of 10% short-term bank notes. The company’s income tax rate is 25%.
Q: None
A: Definition of Target Costing:**Target Costing** is a pricing method used by companies to manage…
Q: Equpment acqured on January 6 ata cost of:374,000, has an estimated usefulhe o/20years and an…
A: Depreciation refers to the fall in value of the asset which is used in the operations of the…
Q: None
A: The required journal entries for the given transactions are presented hereunder: No.Account and…
Q: The Foundational 15 (Algo) [LO4-1, LO4-2, LO4-3, LO4-4, LO4-5] [The following information applies to…
A: Step 1: Break even point is the optimum point of no profit no loss as at this point the firm is…
Q: am. 113.
A: To calculate Lear Incorporated's earnings after taxes under each financing plan, we need to…
Q: Required a. Classify each activity as a unit-level, batch-level, product-level, or facility-level…
A: A cost driver is a variable that influences the expenses associated with an activity, leading to…
Q: as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: ! Required information [The following information applies to the questions displayed below.] Simon…
A: The provided information shows Simon Company's balance sheets for the current year, one year ago,…
Q: Blue Co. both purchases and constructs various equipment it uses in its operations. The following…
A: Step 1: In capitalization of costs to be recognized in recording an equipment, it shall be noted…
Q: None
A: Partial Balance Sheets:For 2022:Construction in Process: $350,000Billings on Construction in…
Q: None
A: Step 1: Formula Net sales = Sales - Sales discounts - Sales returns and allowancesEarnings before…
Q: Madison Corporation's expected beginning cash balance is $35,000. Cash collections are budgeted at…
A: Budgeting is a process of estimation of future income and expenses or cash requirement so that we…
Q: The Fleming Company, a food distributor, is considering replacing a filling line at its Oklahoma…
A: Investment is a initial amount spent on something to get return in future. Net investment is a total…
Q: Please solve this problem directly on Excel spreadsheet. Make sure to include the calculations…
A: The objective of the question is to calculate the tax impact of the sale of assets by Bob. This…
Q: What is the reference value McDermott should consider when pricing IC-75? What is the…
A: Value-based pricing is frequently applied to goods and services that have distinctive features,…
Q: Direct labor variances Bellingham Company produces a product that requires 3 standard direct labor…
A: Lets understand the basics.Direct labor rate variance is a variance between the rate at which labor…
Q: None
A: .Part 2: Explanation:Step 1: Calculate Adjusted Gross Income (AGI)AGI = Blake's gross salary -…
Q: Clean Air Company makes and sells cloth masks. The company purchased a new automated sewing machine…
A: Depreciation rate per unit = (Cost - Salvage value) / Estimated total units to be produced= ($87,000…
Q: ! Required information [The following information applies to the questions displayed below.] VQT…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: None
A: a) Total Remittance = CPP (Employee + Employer) + EI (Employee + Employer) + Income Tax Total…
Q: ez Company reported the following current-year data for its only product. The company uses a…
A: Inventory valuation:Inventory valuation is considered the accounting technique used to calculate the…
Q: Question 5 of 10 < View Policies Current Attempt in Progress Windsor Corporation had the following…
A:
Q: STATEMENT OF CASH FLOW EXAMPLE Kerby Company has prepared the following Balance Sheets for 2023 and…
A: The objective of the question is to prepare a statement of cash flows for Kerby Company for the year…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: **1. Activity Variances:**- Utilities: - Flexible budget cost = $16800 + $0.17 × 21,000 = $17,850…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting…
A: Step 1:Answer 1:Incremental analysis for the special order:Sales revenue from special…
Q: None
A: The direct materials budget is prepared to forecast the number of units and cost of materials to be…
Q: Wildhorse Co. has a product with a unit selling price of $720, variable cost per unit $410, and…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: Required information [The following information applies to the questions displayed below.] Abel…
A: The objective of the question is to determine the impact on Abel Company's profits if it…
Q: Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 1…
A: The Nash equilibrium outcomes:(12,12)(30,30)"Which of these outcomes would you consider most…
Q: June Co. is considering the following alternative plans for financing the company: Issue 10% bonds…
A:
Q: None
A: FedEx sold a delivery truckOriginal Purchase price = $28,000Sale proceeds = $16,000 We need to…
Q: CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. Thecompany's…
A: The first part of the question asks about the relative merits of ROI, RI, and EVA as performance…
Q: None
A: Step 1: Budgeted cash disbursement for April is the sum of cash disbursement for materials in April…
Q: On October 1, Organic Farming purchases wind turbines for $140,000. The wind turbines are expected…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: River, president of Miller Custom Coffee Roasters, drives a 2022 Mercedes E300 with a fair market…
A: To pay taxes, follow tax regulations, maximize tax efficiency, and make wise financial decisions, it…
Q: Baird Manufacturing Company established the following standard price and cost data. Sales price…
A: Master Budget: The master budget provides an overall plan for the organization. It's like a big…
Q: Pharoah Acres sponsors a defined-benefit pension plan. The corporation's actuary provides the…
A: A pension chart is used to check and monitor the funds in your defined benefit pension plan. The…
Q: None
A: Filling out the budgeted income statement: MayJuneBudgeted Sales$96,000$54,000Less: Budgeted Cost of…
Q: - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: Atticus Group equity analysis:1. Outstanding Shares on Cash Dividend Dates:We need to track the…
Q: Collyer Ltd has a valve division that manufactures and sells a standard valve as follows: Capacity…
A: The objective of the question is to determine the acceptable range for the transfer price between…
Q: Clean Duds Laundromat has an industrial water softener that enhances the water quality used in its…
A: Answer:-The query involves comparing two options for handling the industrial water softener at Clean…
Q: On January 1, 2013, Gloss Limited signed off on a leasing contract with MR Stationery to lease a…
A: A lease is a contractual agreement between two business organizations in provides an asset to the…
Q: Five years ago a chemical plant invested $90,000 in a pumping station on a nearby river to provide…
A: Let's analyze the situation and compare the annual costs (after taxes) for the defender (keeping the…
Q: A bond, with a par value of $1000 and is redeemable at par, pays semiannual coupons at a coupon rate…
A: Clean Price Calculation:The clean price of a bond is the present value of all future cash flows…
Q: Requirements 不 (Click the icon to view the information.) - Data table 1. Calculate the amount of…
A: Depreciation is the reduction in the value of assets due to usage and the passage of time. It has…
Q: Profit center responsibility reporting for a service company Thomas Railroad Company organizes its…
A:
Q: When did Walt died
A: Approach to solving the question: Detailed explanation: Walt Disney, the visionary animator, film…
Q: QUESTION 7 Use the following information to answer the next 5 questions. Purchases…
A: The objective of the question is to calculate the total value of goods available for sale in…
Q: None
A: To calculate ΔG at 25°C for the given conditions, we can use the following formula that relates the…
Q: None
A: The statement of cash flows prepared using the indirect method starts with net income and adjusts…
Stanley Department Stores reported net income of $986,000 for the year ended December 31, 2024.
Additional Information:
| Common shares outstanding at January 1, 2024 | 150,000 |
|---|---|
| Incentive stock options (vested in 2023) outstanding throughout 2024 | 36,000 |
| (Each option is exercisable for one common share at an exercise price of $29.00) | |
| During the year, the market price of Stanley’s common stock averaged $34.80 per share. | |
| On August 30, Stanley sold 15,000 common shares. | |
| Stanley’s only debt consisted of $48,000 of 10% short-term bank notes. | |
| The company’s income tax rate is 25%. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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?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.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding 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.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- 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 375. The bonds are classified as a heldtomaturity 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 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 (l). 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 1. Journalize the selected transactions. 2. 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.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?
