The stockholders' equity section of the January 1, 2031 balance sheet for XYZ Company is given below: Common stock, $14 par value Paid-in capital - common stock Treasury stock (14,000 shares @ $16 cost) Paid-in capital - treasury stock Retained earnings $525,000 $150,000 $224,000 $ 13,000 $107,000 XYZ Company entered into the following transactions during 2031: a. Re-issued 2,000 of the treasury shares for $11 per share. b. Re-issued 3,000 of the treasury shares for $13 per share. c. Issued 5,000 shares of previously un-issued common stock for $21 per share. d. Re-issued 6,000 of the treasury shares for $19 per share. Calculate the balance in the retained earnings account after all four transactions above are recorded.
Q: On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for…
A: The inventory can be valued using various methods. The various methods for inventory valuation are…
Q: A machine with a cost of $180,000 has an estimated residual value of $20,000 and an estimated life…
A: Machine Hour Method: Under this method, depreciation is calculated on the basis of hours that the…
Q: Hillville Incorporated sells basketballs. Each basketball requires direct materials of $17.00,…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: The following labor standards have been established for a particular product: Standard labor hours…
A: Direct labor variance Total is the sum of direct labor rate variance and direct labor efficiency…
Q: Problem 11-22 Return on Investment and Residual Income [LO3, LO4] Financial data for Bridger Inc.…
A: Company's Margin - The company's Profit margin is a profitability ratio or a financial performance…
Q: Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with…
A: Partnership accounting differs from corporate accounting and individual accounting. The income…
Q: Required: 1. This part of the question is not part of your Connect assignment. 2. Complete the…
A: Standards are set in advance, from the standard the actual performance is measured. In case if the…
Q: The Garware Paints Ltd presents to you the following income statement in a condensed form for the…
A: Break even point is the level of sales at which the total cost of the firm is equal to the total…
Q: Raider Corporation uses the weighted-average method in its process costing system. The Molding…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Selected data from the comparative statements of financial position of Granger Ltd. are shown below:…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…
Q: A company's balance sheet showed the following amounts for liabilities and stockholders' equity…
A: Calculation of Debt to Equity Ratio:The Debt-Equity Ratio indicates how much debt a company is using…
Q: Hargrave Kitchen & Bath has 6 million shares outstanding at a price of $33.25 per share. The company…
A: Right Shares shares issued to existing shareholders in proportion to their current holdings at a…
Q: Retro reported the following transactions for the month of December. The company uses a perpetual…
A: FIFO stands for First-In, First-Out. It is a method used for cost flow assumption purposes in the…
Q: Tannenbaur Corporation purchased a truck on March 25, 2023 for $90,000. The truck is estimated to…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. Under units of…
Q: Assume Sheffield Company has the following reported amounts: Sales revenue $750,000, Sales returns…
A: Sales Revenue$750,000Less: Sales returns and allowances$20,000Net Sales ($750,000 -…
Q: Jason has made the following donations and contributions during the current taxation year: •…
A: It is the amount made to a non-profit organization in the form of gift of cash or property to help…
Q: Splish Corporation made credit sales of $30,600 which are subject to 7% sales tax. The corporation…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Problem 14-58 (LO 14-5) Roberto has a basis of $6,000 in a partnership at the beginning of the year.…
A: Partnership refers to the type of company that has two or more than two owners. Under the…
Q: Lewi Corp. enters into a contract with a customer to build an apartment building for $1,015,200. The…
A: Teams as well as individuals may get performance incentives. Individual performance incentives are…
Q: On January 1, 2023, Holiday Corporation completed the following transactions (you can assume a 6%…
A: As per accounting concept, all costs directly associated with purchase of assets or making them…
Q: An employee earns a gross
A: Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a…
Q: Pharoah Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD. One…
A: A possible financial obligation or debt that a business anticipates having in the future but for…
Q: Carpark Services began operations in 20X1 and maintains investments in available-for-sale debt…
A: A journal entry is being used to record a business arrangement in a corporation's accounting…
Q: Fluegge Incorporated has provided the following data concerning one of the products in its standard…
A: Variance arises when the actual costs differ from the standard costs. The results are favorable…
Q: iSounds Inc. manufactures electronic stereo equipment. The manufacturing process includes printed…
A: Calculate the value - added time , non -value added time and the value - added ratio as shown…
Q: Sherri Springs is a producer of flavored water. Below is the data for its production in April.…
A: The sum of the variable and fixed costs is known as the production costs. Manufacturers and other…
Q: Required information Use the following Information for the Exercises below. (Algo) [The following…
A: Federal Income Taxes:-The Internal Revenue Service imposes a tax known as the federal income tax on…
Q: Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to…
A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
Q: Cedar Company has forecast purchases to be $338,000 in June, $377,000 in July, $319,000 in August,…
A: A cash budget is a written plan that projects a company's cash flows for specific timeframes, like…
Q: Franklin Manufacturing Corporation was started with the issuance of common stock for $80,000. It…
A: The job order costing system is the costing method that determines the total cost associated with…
Q: PT Partnership begins with 2 partners. Parrot contributes assets with a FMV of $50,000 and an…
A: In a partnership, the initial contributions made by partners are generally not taxable events for…
Q: Entity B purchased land to build a pharmacy. It incurred the following costs: Purchase price of land…
A: The cost of land improvements includes fencing, paving, parking areas and lighting.
Q: [The following information applies to the questions displayed below.] Vanishing Games…
A: Income statement is one of useful financial statement being prepared in business. It shows all…
Q: Compute the profitability index for the following proposal, assuming the desired minimum rate of…
A: The objective of the question is to calculate the profitability index for a project proposal. The…
Q: QS 22-27A (Algo) Merchandising: Schedule of cash payments LO P4 Torres Company budgets merchandise…
A: The 50% of purchases will be paid in the next month. Thus 50% from December purchases will be paid…
Q: Stores is offering employe severance package of $104,000 cash paid today; $104,000 to be paid in one…
A: Many areas of accounting or finance, such as investment analysis, personal finance, and corporate…
Q: General Ledger Problem 5.1 (based on Chapter example). LO 5-1, 5-2, 5-3, 5-4, 5-5 This is a…
A: Adjusting entries is important for organizations to follow the accrual principle. These entries help…
Q: Cauce Corporation is preparing its year-end balance sheet. The company records show the following…
A: Current assets are those assets which are convertible into cash within one year from balance sheet…
Q: The following summarized manufacturing data relate to Steffan Corporation's April operations, during…
A: According to the question given, we need to compute the variance and variance analysis.Material…
Q: Denton Company manufactures and sells a single product. Cost data for the product are given:…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Based on the following table, what is the approximate Internal Rate of Return (IRR) for a project…
A: The objective of this question is to calculate the Internal Rate of Return (IRR) for a project based…
Q: AA 7-2 Comparative Analysis LO A1 Key figures for Apple and Google follow. $ millions Accounts…
A: Days payable outstanding is the number of days required by company to pay its supplier for goods…
Q: Concord Corporation reported net income of $2.2 million in 2022. Depreciation for the year was…
A: The Cash Flow Statement is the statement that shows the cash inflow and outflow of the company. This…
Q: Here's an example of how breakpoint discounts on sales commissions for mutual fund investors work:…
A: Breakpoint discounts are volume discounts offered on the sales charges of mutual funds,…
Q: Open a ledger account for Cash in balance column format. Post general journal entries that impact…
A: The ledger account is prepared in t-format. It is also called a t-account or subsidiary ledger. It…
Q: Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama.…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and…
A: Fixed overhead-spending variance= Actual fixed overhead-Budgeted fixed overhead. Fixed…
Q: Uhtred Manufacturing had the following transactions in October: Purchased raw materials on account,…
A: The journal entries are prepared to record the transactions on a regular basis. The direct costs are…
Q: City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $25,100. In…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. It is the Process of…
Q: *Skysong Corporation purchased 360 shares of Sherman Inc. common stock for $10,800 (Skysong does not…
A: Fair value through Other Comprehensive Income (FVOCI) is an accounting method used to classify…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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?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.
- The stockholders' equity section of the January 1, 2031 balance sheet for XYZ Company is given below: Common stock, $14 par value ................. $525,000 Paid-in capital – common stock .............. $150,000 Treasury stock (14,000 shares @ $16 cost) ... $224,000 Paid-in capital – treasury stock ............ $ 13,000 Retained earnings ........................... $107,000 XYZ Company entered into the following transactions during 2031: a. Re-issued 2,000 of the treasury shares for $11 per share. b. Re-issued 3,000 of the treasury shares for $13 per share. c. Issued 5,000 shares of previously un-issued common stock for $21 per share. d. Re-issued 6,000 of the treasury shares for $19 per share. Calculate the balance in the retained earnings account after all four transactions above are recorded.The stockholders' equity section of the January 1, 2031 balance sheet for XYZ Company is given below: Common stock, $14 par value ... Paid-in capital - common stock Treasury stock (22,000 shares @ $16 cost) Retained earnings $525,000 $150,000 $352,000 $129,000 XYZ Company entered into the following transactions during 2031: a. Re-issued 2,200 of the treasury shares for $13 per share. b. Re-issued 4,100 of the treasury shares for $21 per share. c. Re-issued 3,700 of the treasury shares for $14 per share. d. Re-issued 3,500 of the treasury shares for $11 per share. Calculate the balance in the treasury stock account after all four transactions above are recorded.On January 1, 2022, Skysong, Inc. had the following stockholders' equity accounts. Common Stock ($12 par value, 78,800 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings During the year, the following transactions occurred. Jan. 15 Feb. 15 Apr. 15 May 15 July 1 . Dec. 1 Dec. 31 $945,600 195,000 521,000 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 5% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $16 per share. Issued the shares for the stock dividend. Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is $6.) Declared a $0.80 per share cash dividend to stockholders of record on December 15, payable January 10, 2023. Determined that net income for the year was $250,000.
- On January 1, 2022, Whispering Winds Corp. had the following stockholders' equity balances. Common Stock (583,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings 1. During 2022, the following transactions and events occurred. 2. 3. 4. 5. $1,749,000 6. 477,000 174,900 577,000 Issued 58,300 shares of $3 par value common stock as a result of 10% stock dividend declared on December 15, 2021. Issued 30,500 shares of common stock for cash at $5 per share. Purchased 28,000 shares of common stock for the treasury at $6 per share. Declared and paid a cash dividend of $112,000. Sold 7,000 shares of treasury stock for cash at $6 per share. Earned net income of $342,000. Prepare a stockholders' equity statement for the year. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).)On January 1, 2021, Covid, Inc. had the following account balances in its shareholders' equityaccounts.Common stock, $10 par, 25,000 shares issued $ 250,000Paid-in capital—excess of par, common 500,000Paid-in capital—excess of par, preferred 100,0005% Preferred stock, $100 par, 10,000 sharesoutstanding1,000,000Retained earnings 2,000,000Treasury stock, at cost, 500 shares 25,000During 2021, Covid Inc. had several transactions relating to common stock.April 10: A 2-for-1 stock split was declared and distributed on outstandingcommon stock and effected in the form of a stock dividend. Themarket value of the stock was $50 on this date.July 18: Declared and distributed a 3% stock dividend on outstandingcommon stock. The market value is $40 per share.December 1: Declared a 50 cents per share cash dividend on the outstandingcommon shares.December 20: Paid the cash dividend.Below, and/or on the following page, without preparing journal entries, prepare the shareholders'equity section of…The following information relates to SE11-8 through SE11-10: Evans & Sons, Inc., disclosed the following information in a recent annual report: Net income Preferred stock dividends. Average common stockholders' equity. Dividend per common share.. Earnings per share. . . . . Market price per common share, year-end. 2018 $ 35,000 3,000 1,000,000 1.90 2.85 19.00 2019 $ 48,000 3,000 1,500,000 2.00 3.20 21.00 SE11-8. Return on Common Stockholders' Equity Calculate the return on common stockholders' equity for Evans & Sons for 2018 and 2019. Did the return improve from 2018 to 2019? SE11-9. Dividend Yield Calculate the dividend yield for Evans & Sons for 2018 and 2019. Did the dividend yield improve from 2018 to 2019? SE11-10. Dividend Payout Ratio Calculate the dividend payout for Evans & Sons for 2018 and 2019. Did the dividend payout increase from 2018 to 2019? SE11-11. Change in Stockholders' Equity Nikron Corporation issued 20,000 shares of $0.50 par value common stock during the year…
- The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019. Current assets $540,000 Debt investments (trading) 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 Instructions Prepare the required journal entries for the following unrelated items. a. A 5% stock dividend is declared and distributed at a time when the market price per share is $39. b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Marigold Corporation at December 31, 2022. Common Stock ($5 stated value) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock (8%, $100 par) Retained Earnings Treasury Stock (11,000 common shares) $1,715,000 282,000 947,000 550,000 1,050,000 132,000 Prepare the stockholders' equity section of the balance sheet at December 31, 2022. (Enter the account name only and do not provide the descriptive information provided in the question.) MARIGOLD CORPORATION Partial Balance SheetThe following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019. Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000 Share Premium - Ordinary $ 75,000 Retained Earnings $ 420,000 Prepare the required Journal Entries for the following unrelated items! 1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share. 2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split. 3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.