Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,000 shares of its common stock at $68 per share. On September 22, Mystic Lake sold 3,500 of the reacquired shares at $76 per share. The remaining 1,500 shares were sold at $64 per share on November 23. a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank. July 9 Sept. 22 Nov. 23 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?
Q: Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are…
A: By using the Accounting equation for each transaction the amount of total assets can be determined…
Q: Prepare the year-end adjusting and the Supplies Expense accc
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash…
A: Dividend - Dividend is the amount from the profit earned by the company to their shareholders. it is…
Q: Problem 18: Predetermined Factory Overhead believes that the company would be better if it will use…
A: Predetermined Overhead Rate :— It is calculated by dividing total budgeted overhead by estimated…
Q: d. Cost of the units started and completed during the period.
A: Equivalent unit refers to the units that are calculated based on the work done by the manufacturer…
Q: One of the significant remaining differences between U.S. GAAP and IFRS is the treatment of…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average method FIFO Method -…
Q: 2. If you could relate materiality, disclosure, and conservatism to types of measure- ments…
A: You may find out how accurately variables are recorded using levels of measurement, also known as…
Q: Can you show me how to figure the charitable contribution amount of $12,540?
A: Charitable contribution refers to the amount of money which is donated including the securities or…
Q: Radio World prints and distributes checks for its employees 12 times each year. Its workweek begins…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: Determine the following: 1. Compute the ending inventory to be reported when the company implements:…
A: First in First out Method First In, First Out, sometimes known as FIFO, is a strategy of managing…
Q: Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are…
A: Activity Based Costing - It is the method of costing wherein cost is allocated in different activity…
Q: cial Accounting & Reporting III ses Part 2, In-class activity #2 ses R Us (LRU) has been approached…
A: A lease is defined as the contract between two parties for use of an asset. The rent which the…
Q: sits and foreign currency deposit act of the philip
A: Bank deposits refer to the concept when a bank account holder submits his or her money into his…
Q: Question Content Area Financial Statements The amounts of the assets and liabilities of Wilderness…
A: The financial statements of the business are prepared using the adjusted trial balance of the…
Q: Rhino, a C corporation, has $470,000 operating income and $290,000 operating expenses during the…
A: Long term capital gain will be offset against short term capital loss. Taxable income = operating…
Q: Ultimo Company operates three production departments as profit centers. The following informatio…
A: Contribution to overhead is the amount that a department generates after deducting all its direct…
Q: On 1 October 2020, ABC Limited sold three machines to a customer for a total amount of R 1 900 000.…
A: As per IFRS 15, Revenue Recognition performance obligation is an promise given to customer to…
Q: Handerson Corporation makes a product with the following standard costs: Standard Quantity or…
A: Lets understand the basics. Material price variance is a variace between the rate at which material…
Q: 1. has After moving, a homeowner's annual insurance premium increased from $480 to $710 per year.…
A: There are two questions asked and we are authorized to solve only one question under a multiple…
Q: Accounting Bosco Corp. uses a process costing system. Beginning inventory for January consisted…
A: Introduction: Using a process costing technique, costs are compounded when numerous comparable goods…
Q: JC Company sells various merchandize ( building materials, stationery, house hold goods, and assortd…
A: Every business wants the public to know their business and for this company makes the statements or…
Q: Required: • Income statement of 2019 • Income statement of 2020
A: Income statement is one of the useful financial statement being prepared in business for reviewing…
Q: Builtrite bonds have the following: 4 1/2% coupon, 12 years until maturity, $1000 par and are…
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…
Q: Simplifying the ABC System: TDABC Golding Bank provided the following data about its resources and…
A: Disclaimer: As per instruction of question we have to solve question 2 Activity-based costing…
Q: Suppose equipment is sold for cash in an amount equal to the cost of the equipment recorded on the…
A: The Assets will increase and the owner 's equity will also increase . When equipment is sold for…
Q: Bally Manufacturing sent Intel Corporation an invoice for machinery with a $14,800 list price. Bally…
A: List Price The list price is the stated price at which a product is made available for purchase…
Q: PAP-4A Westphal Construction sold to Walker Management Company apartments it had con- structed. The…
A: Given Information: Sales price: $2.5 million Construction costs: $1.6 million Cash collected during…
Q: Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with…
A: Child tax credit is offered as part of cost of raising a child and is dependent on the age of the…
Q: The balance sheet for Sherban Company at year-end is below: Sberban Company Balance Sheet December…
A: Statement of cash flow - This statement shows the inflow and outflow of cash during the financial…
Q: Chuck, a single taxpayer, earns $75,600 in taxable income and $10,700 in interest from an investment…
A: Lets understand the basics. As per US tax law, interest from an investment in City of Heflin bonds…
Q: The account used to pay for very small business purchases is called a) Accounts Receivable b) Petty…
A: Petty Cash - The company maintains a petty cash account to pay small expenses. This account is…
Q: (Issuance and Conversion of Bonds) For each of the unrelated transactions described below, present…
A: Account Debit Credit Personal Accounts The Receiver The Giver Real Accounts What…
Q: None of these are correct.
A: Yield to maturity is the current interest rate of the bond which is used for discounted the bond's…
Q: On April 30, 2021, one year before maturity, a Corporation retired $500,000 of 6% bonds payable at…
A: The bondholders will need to get paid at the carrying value of the bonds plus the premium. The…
Q: . $20,200 b. $7,700 c. $5,200 d. $7,300
A: A balance sheet is a tool for measuring the performance and financial position of every organization…
Q: Prepare the production department's equivalent units of production for direct materials under each…
A: Equivalent units are the number of units that could be completed if the all resources available were…
Q: Community benefits serve as justification for a non-profit healthcare organization's tax-exempt…
A: Answer:- Non-profit organization meaning:- A non-profit organization is a group that was…
Q: Company A Company B 14/15/20/9 15/7/21/5 a. Calculate the single equivalent discount rate for each…
A: The discount rate is used for calculating the future value of the investment made today after…
Q: At the beginning of the year, a company estimates total direct materials costs of $1890,000 and…
A: It is given that: Estimated direct material cost - $ 1,890,000 Total overhead cost- $ 2,627,000…
Q: Wilcox Park, Inc. acquired additional assets of $370,000 during 2022. Total revenues were $760,000…
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…
Q: Robertson Company had 40,000 shares of common stock outstanding during 2016 and compensatory share…
A: Earnings per share is the percentage of profits that each share of a company receives.The basic EPS…
Q: Distinguish between income and expenses and provide three (3) examples of each to support your…
A: The income statement shows the transactions of income or expenses in the company, It is to be…
Q: Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Question 1. Once a union is in existence, in accordance with the National Labor Relations Act,…
A: Answer:- Collective bargaining meaning:- The process through which an employer and a group of…
Q: Jen Miller made $1,090 this week. Only social security (fully taxable) and federal income taxes…
A: Income Tax - It is the amount charged by the government over an income earned by the company/person…
Q: Acquisition Cost On January 1, 2017, Zircon Enterprises purchased a piece of equipment with a list…
A: Acquisition cost: The acquisition cost of a given asset, machinery, tool, or equipment is the sum of…
Q: Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct…
A: Solution Job order costing is a type of costing method which is used to determine the cost of…
Q: Problem 3 (Adapted) Shalom corporation’s current balance sheet reports the following shareholder’s…
A: Book value per share is determined by dividing the net value of assets by the number of outstanding…
Q: The Alberto Division of Imperial Ltd. had the following operating results last year: Sales (units)…
A: Relevant Cost :— It is the cost that is relevant for making decision regarding acceptance of special…
Q: What im
A: Expenses incurred day to day running of the business such as rent salaries wages power fuel etc.…
Step by step
Solved in 3 steps
- Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend?Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. The company pays the dividend on December 14. What is the journal entry to record the payment of the dividend?
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, 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 8,000 shares of treasury common stock at 33 per share. G. 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. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. 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. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 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 5,313,000 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 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 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 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),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, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 200,000 shares of common stock at 12, receiving cash. b. Issued 8,000 shares of preferred 2% stock at 115. c. Purchased 175,000 shares of treasury common for 10 per share. d. Sold 110,000 shares of treasury common for 14 per share. e. Sold 30,000 shares of treasury common for 8 per share. f. Declared cash dividends of 1.25 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.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.
- 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.Nutritious Pet Food Companys board of directors declares a cash dividend of $5,000 on June 30. At that time, there are 3,000 shares of $5 par value 5% preferred stock outstanding and 7,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?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?