FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Addition to Retained EarningsYour corporation reported net income of $930 for 2020 and the Board of Directors decided to declare dividends of $200. What is the 2020 corporation's addition to retained earnings? Please show your formula and calculations in the space provided.arrow_forwardComparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Balance at January 1, 2019 sale of preferred shares sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/11 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 18% common stock dividend, 5/1 sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 Year 2019 2020 2021 LOCKE INTERTECHNOLOGY CORPORATION statements of shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Numerator / Denominator = Earnings per share 1 1 1 = Preferred stock, $10 par 12 12 12 $12 Common stock, $1 par 80 $ 11 91 (4) 43.5 130.5 13.05 3 $146.55 Additional Paid-in…arrow_forwardThe board of directors of Tru Corporation declared cash dividends of $4.4 million, $9.0 million, and $51.0 million in each of its first 3 years of operation: 2019, 2020, and 2021, respectively. The shareholders' equity of Tru Corporation includes the items shown below. Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 5%, $100 par, 1,000,000 shares outstanding Required:Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is noncumulative and nonparticipating. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).arrow_forward
- Alexander Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$25 par value, 60,000 shares authorized, 39,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 shares of its own stock at $25 cash per share. January 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.. October 22 Paid the dividend declared on September 9. December 31 Closed the $61,000 credit balance (from net income)…arrow_forwardPrepare the journal entries to record the above stock transactionsarrow_forwardRequirement 1a-1b please!arrow_forward
- On Dec 15, 2019 the board of directors of Flexsttel declared a cash dividend. The dividend is payable on Jan 8, 2019, of $0.80 per share on the 2,000,000 common shares outstanding. On dec 15, 2019 Flexsteel should: A. Decrease retained earnings $1.6 million and increase expenses $1.6 million B. Debit dividends $1.6 million and credit dividends payable by $1.6 million C. Not prepare a journal entry because the event had no effect on the corporation's financial position until 2020. D. Decrease cash $1.6 million and decrease retained earnings $1.6 millionarrow_forwardWheaton Tire Inc., [WTI] reported the following excerpts from shareholders’ equity on January 1, 2021: Preferred shares, 0.90, 300,000 issued and outstanding $6,000,000 Common shares, 400,000 issued and outstanding $4,400,000 The company declared and paid a cash dividend on February 1, 2021 of $1,400,000. Dividends had not been declared for the past two years, 2019 and 2020. now assume that for this question only that the preferred shares were non cumulative and fully participating. How much will each shareholder group receive? Select one: a. All $1,400,000 to Common since the Preferred are non-participating. b. Each group receives an equal amount of $700,000 per group. c. $270,000 to Preferred and $1,130,000 to Common. d. $807,692 to Preferred and $592,308 to Common. e. None of the above.arrow_forwardplease answer question 2arrow_forward
- How do I do this?arrow_forwardRecording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 48,000 shares outstanding $480,000 Paid-in capital in excess of par 163,200 320,000 Retained earnings The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 4,800 stock dividend shares, 4,480 shares are whole shares and 320 shares are fractional shares. It is the company's policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. • Note: List multiple debits (when applicable) in alphabetical order and list…arrow_forward
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