The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 53,100 shares authorized; 23,280 and 21,000 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? Outstanding shares The following transactions occurred during 2024 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.30 per share cash dividend was declared, and the date of record was five days later. Mar. 20 1,600 common shares were repurchased and retired at $22.00 per share. Apr. 5 A $1.00 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.40 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $40.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $2.00 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Apr. 5 July 5 2024 Oct. 5 2023 $582,000 $462,000 608,500 648,900
Q: ate for the current year on total fixed manufacturing overhead cost of $237,000, variable…
A: Product cost refers to the total cost incurred in factory for the production of goods and thus…
Q: Kahlon Company likes to maintain its inventory quantity at the end of each month equal to one fourth…
A: The objective of the question is to calculate the number of units that Kahlon Company needs to…
Q: When a bond is issued, its interest rate is based on Select an answer: the average interest rate…
A: A bond is a financial tool that helps organizations like companies or governments raise funds. It's…
Q: In a recent year a car manufacturer sold 217,044 cars. The company budgeted to sell 226,244 cars…
A: In sales price variances, we compare actual results with flexible budget, if actual sales are more…
Q: Q6: Tally Forth reports the direct materials standard as 3 lbs per unit at $5.5 per lb. which is…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: Using the information below for Laurels Company; determine the cost of goods manufactured during the…
A: Cost of goods manufactured is the amount of money incurred on the making of the goods. It include…
Q: Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, 2014…
A: When revenue is earned and realized, or realizable, it is recognized. Accordingly, revenue should be…
Q: Corporate legal office salaries. Shoe Department cost of sales-Brentwood Store Corporate…
A: Direct costs are those costs that are easily identifiable with the product or a specific cost…
Q: On January 1, 2018, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using LIFO, the…
Q: Nardin Outfitters has a capacity to produce 22,000 of their special arctic tents per year. The…
A: When a customer or consumer desires something that is not regularly stocked or offered as a service,…
Q: Beginning inventory. Net purchases Net markups Net markdowns Net sales. Beginning inventory Net…
A: LIFO is last in first out method means inventory bought last is sold first.Inventory means the…
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: ROI = Net operating income / Average Operating Assets
Q: Indigo Water is considering introducing a water filtration device for its 20-ounce water bottles.…
A: Investment $ 20,00,000Multiply: Required ROI18%Desired Profit $ 3,60,000
Q: Mann Incorporated offers a restricted stock award plan to its vice presidents. On January 1, 2024,…
A: Stock compensation is one of the methods of companies to reward employees with the option to buy…
Q: Which of the following is determined by subtracting all variable costs from the total selling price?…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Notes Payable On November 7, 2016, Mian Company borrows $160,000 cash by signing a 90-day, 8% note…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: 4. What is the materials quantity variance for March? Note: Indicate the effect of each variance by…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: The following tabulations are actual sales of units for six months and a starting forecast in…
A: Simple exponential smoothing is a forecasting method that uses weighted averages of past data to…
Q: For 2020, Culver Inc. computed its annual postretirement expense as $235,300. Culver's contribution…
A: Golden Rule of Journal Entry :—Debit the Receiver, Credit the Giver.Debit what Comes in, Credit what…
Q: The income statement for Electronic Wonders reports net sales of $91,748 million and cost of goods…
A: The direct method of cash flow analysis involves presenting all the cash inflows and outflows of a…
Q: ssume that salaried employees of Mayer, Incorporated, earn 2 weeks of vacation per year. The…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: On May 1, Year 3, Love Corporation declared a $68,700 cash dividend to be paid on May 31 to…
A: Accounting equation indicates that company's total assets are equal to the sum of its liabilities…
Q: When Resisto Systems, Incorporated, was formed, the company was authorized to issue 5.000 shares of…
A: Balance Sheet :— It is the one of the type of financial statement that shows list of final ending…
Q: Pension data for Sterling Properties include the following: Service cost, 2021 Projected benefit…
A: Pension expense is the obligation of the company or cost incurred by the company for the pension…
Q: Required information. [The following information applies to the questions displayed below] Wardell…
A: Depreciation Expense is charged on the fixed assets of the company. This is charged due to wear and…
Q: Kyle, a single taxpayer,
A: Answer:- FICA taxes meaning:- A payroll tax is required to be deducted from employee's paychecks…
Q: Anchor Company purchased a manufacturing machine with a list price of $97,000 and received a 2% cash…
A: Cost of an asset (non-current asset) to be recorded is books is the necessary cost incurred to get…
Q: Required information Use the following information for the Exercises below. (Algo) (The following…
A: Answer:-Accounting equation:- The equation that describes how the firm's or organization's assets…
Q: Multiple Choice $41766 $35,369 $44.798 $39,309
A: Accretion expense is generally recognized with respect to asset retirement obligations (AROs). An…
Q: Horizontal analysis is often referred to as the simplest approach of analyzing information. True…
A: Horozontal analysis also known as trend analysis is used to analyse and compare the data present in…
Q: activity cost pools and activity rates: y Cost Pool ing direct labor rocessing design processing r…
A: Customer margin means the amount of profit made by selling the goods the customer. It is the margin…
Q: Beginning of the year End of the year Assets $ 101,500 153,500 $43,513 62,168 1. Owner made no…
A: Lets understand the basics.As per accounting equation or balance sheet equation, total assets is…
Q: Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process…
A: The cost of goods sold includes the costs of jobs that are sold during the period. The work in…
Q: At January 1, 2024, Hilly Mountain Flagpoles had Accounts Receivable of $27,000, and Allowance for…
A: Accounts receivable :Money that the business will be receiving from its clients who have utilized…
Q: June 14 A debit memo was issued for $6,880.00 to Kawaski USA, for the return of one AU150 ULTRA 150…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: Propiem 12-0 Consider the following information for HandyCraft Stores for 2014 and 2015: Total…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: uclid acquires a 7 year class asset on May 9,2021 for $80,000(only asset acquired during the year).…
A: Depreciation is a non-cash expense.Depreciation is charged on fixed asset over a estimated useful…
Q: Sheffield Company's record of transactions for the month of April was as follows. April 1 (balance…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: Wildhorseuses DM of $47,000 and incurs DL and MOH costs of $55,000 and $27,000, respectively, in a…
A: Joint costs means the costs incurred in producing multiple products simultaneously from the same raw…
Q: osby Company owns a chain of hardware stores throughout the state. The company uses a periodic…
A: Last in, first out (LIFO):- As per LIFO method records the most recently produced items as sold…
Q: Contribution Margin= $13427 Operating Income = $6390 if volume goes up by 17.08%, operating income…
A: The Relationship between the contribution margin and the net operating income is given by operating…
Q: Wildhorse Ltd. is constructing a building. Construction began on February 1 and was completed on…
A: Lets understand the basics.Borrowing cost incurred behind qualifying asset needs to…
Q: On December 16, Carboy, Incorporated, borrows $120,000 cash from Third National Bank at 9 percent…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: The machining division of Sheridan International has a capacity of 2,130 units. Its sales and cost…
A: Sales200 $ 75.00 $ 15,000Less: Variable cost200 $ 24.00 $ 4,800Contribution margin lost200 $…
Q: Penny's direct material cost is $3 per unit. The direct labor rate is $17 per hour and each units…
A: Cost of goods sold is calculated by multiplying product cost per unit by number of units sold.…
Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…
A: The variance is the difference between the standard and actual cost production data.Fixed overhead…
Q: Johnson and Gomez, Inc., is a small firm involved in the production and sale of electronic business…
A: Corporation may face a situation where it has two alternatives and it needs to select one. The…
Q: how did you find the cost of goods sold and the net income
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: Dan Watson started a small merchandising business In Year 1. The business experienced the following…
A: Income statement is the financial statement prepared by the entity for the purpose of determining…
Q: Duffield Lubricants produces oll-based machine lubricants. On December 1, It had no work-in-process…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Step by step
Solved in 5 steps with 5 images
- 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 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.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?
- 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.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?
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.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. 6.73Calculating 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?
- 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.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.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)