Whispering Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet: Preferred stock, 12%, $100 par ( 100,000 shares authorized, 22,000 shares issued) Common stock, $1 par (1,000,000 shares authorized, 300,000 shares issued) Additional paid-in capital-common Retained earnings $2,200,000 300,000 900,000 1,280,000
Q: Direct materials Direct labor 9.00 pound @ $11.25 per pound 5.40 hour @ $24.00 per hour 1.80 hour @…
A: Calculation of Material Price variance for quantity purchasesMaterial price variance for quantity…
Q: Benson Watches, Incorporated makes watches. Its assembly department started the accounting period…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: eBook Process or Sell Product Tango is produced for $3.38 per gallon. Product Tango can be sold…
A: DIFFERENTIAL ANALYSISDifferential analysis is a decision-making method that examines the net effects…
Q: (a) Determine the internal rate of return for each project. (Round answers O decimal places, eg.…
A:
Q: Calculate Payroll Breakin Away Company has three employees-a consultant, a computer programmer, and…
A: Gross pay refers to the total income earned by the employee. It includes the regular pay according…
Q: Ray Company provided the following excerpts from its Production Department's flexible budget…
A: The flexible budget is prepared for actual level of production. The flexible budget rates are based…
Q: Assume the following: Net Income $100,000 Depreciation $8,000 Accounts Receivable decreases by…
A: A cash flow statement is a financial statement that provides all cash inflows from operating…
Q: Conversion of Preferred Stock into Common Stock Smith & Sons, Inc., has 20,000 shares of $100 par…
A: The conversion of preferred stock into common stock involves preferred stockholders exchanging their…
Q: Purchase Date Apr. 9 May 1 Total on hand Quantity 80 45 125 Unit Cost $ 1,500 $ 1,600 Total Cost…
A: Under FIFO method materials received first in the stores are issued first and accordingly, Inventory…
Q: Primara Corporation has a standard cost system in which it applies overhead to products based on the…
A: Fixed Overhead Volume Variance measures the difference between the actual production volume and the…
Q: Changes in current operating assets and liabilities-indirect method Huluduey Corporation's…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Beth, who is single, redeems her Series EE . bonds. She receives $12,000, consisting of $8,000…
A: It is the income of a taxpayer on which the revenue authorities will impose tax. Taxable income is…
Q: Which of the following is NOT a reportable segment criteria. Question Answer a. Its assets are 10%…
A: Reportable Segments:According to International Financial Reporting Standards 8, a business must…
Q: Current Attempt in Progress Sweet Acacia Co. uses a standard job cost system with a normal capacity…
A: Fixed OH Spending Variance is the difference between budgeted fixed overhead and the actual fixed…
Q: Tamar owns a condominium nea
A: Note to student :- Dear student, as you asked multiple subquestions as per norms we will answer…
Q: Required information [The following information applies to the questions displayed below.) AMP…
A: Depreciation deduction is a beneficial tool because of that Businesses receive a tax benefit and…
Q: Company manufactures a product with the following standards: Standard Quantity Standard Price or or…
A: Lets understand the basics.Material price variance is a variance between the rate at which material…
Q: A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross…
A: The purposes of adjustments to income in the context of U.S. taxation are as follows:Purpose of an…
Q: Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to…
A: A resource that has economic worth and is owned or controlled by a person, business, or nation with…
Q: Assume a retalling company has two departments-Department A and Department B. The company's most…
A: The phrase "relevant cost" in management accounting refers to avoidable expenses that are only…
Q: A company takes out a five-year, $2.9-million mortgage on October 1. The interest rate on the loan…
A: Accounting for loan repayment in installments involves systematically recording and managing the…
Q: For the upcoming year You budget the following 5280000 pounds of material at a cost of $31680000 12…
A: 1. Standard Direct Material Cost Per PoundStandard Cost Per Pound=Actual Material QuantityStandard…
Q: a. At the beginning of the year, James's basis in his Birch Corporation stock was $53,100 and his…
A: The amount of loss clearing tax basis limitation is $29,800. $29,800 is the business loss…
Q: margin from last ating expenses ating income $220,000 126,000 94,000 55,000 $39,000
A: To calculate the total operating income considering the special order the existing income is added…
Q: A machine costing $213,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: The question is related Depreciation Accounting. The methods asked in the question are 1.…
Q: Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on…
A: Variance analysis is the identification and analysis of the difference between the actual…
Q: Instructions If generally accepted accounting principles were followed, how would the items above…
A: a.The items related to research and development activities should be reported on as below in the…
Q: Linda Sue Carr worked for a large food brokerage firm. In January of this year she was terminated.…
A: The objective of the question is to determine whether Linda Sue Carr must include the $7,500 in…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Cost allocation is the process using which the costs of different departments or the common costs of…
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: Destin Company produces water control valves, made of brass, that it sells primarily to builders for…
A: Direct costs are the expenses that are directly used for the production of goods and services for…
Q: QS 11-6 (Algo) Accounting for cash dividends LO P2 Prepare journal entries to record the following…
A: The board of directors of an corporation is the entity which is responsible for an determining…
Q: Rachel receives employer-provided health insurance. The employer's cost of the health insurance is…
A: Employees receive several bonuses and incentives from their jobs. Employer-provided perks and…
Q: Required information. PA11-1 (Algo) Analyzing Accounting Equation Effects, Recording Journal…
A: The stockholders' equity includes the issued capital and retained earnings of the business. The…
Q: Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs…
A: Asset retirement obligation (ARO) refers legal liability of the entity associated with the…
Q: LO.6 (Hybrid costing) Batwings makes one-size-fits-most capes. Each cape goes through the same…
A: The cost of completed units is considered 100% of completed units for direct materials, direct…
Q: Wright Company's cash account shows a $28,900 debit balance and its bank statement shows $27,200 on…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…
Q: Artemis is a 30% partner in the CAR Partnership. At the beginning of the tax year, Artemis' basis in…
A: The objective of the question is to calculate the basis of Artemis' partnership interest in the CAR…
Q: Lelime Precision Tools makes cutting tools for metalworking operations. It makes two types of tools:…
A: The objective of the question is to determine the product mix of A6 and EX4 that will maximize…
Q: Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: Selling price of bonds would be the present value of the interest annuity & maturity amount at…
Q: el and Sons Inc. uses a standard cost system to apply factory overhead costs to units pro- plant is…
A: The actual overhead cost is debited in factory overhead account . The applied overhead cost is…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: Dividend Per Share (DPS) is computed by dividing the earnings attributable to shareholders by the…
Q: Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials:…
A: Variance analysisVariance analysis is an analysis of a difference between planned and actual…
Q: (a) Calculate the total, budget, and volume variances for overhead. Total overhead variance $…
A: total overhead variance in accounting is the difference between the actual overhead costs incurred…
Q: SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the…
A: Standard costing is one of useful technique being used in cost accounting. Under this, all standard…
Q: Journalize the Corporations Transactions for August 2024 August 1/ Paid $836 cash for office…
A: A journal entry is made to record the financial transaction in the books of accounts.Adjusting…
Q: Calculate free cash flow. (Show a negativ
A: The free cash flow shows the amount of cash generated each year that is free and clear of all…
Q: a. Equipment with a book value of $81,000 and an original cost of $165,000 was sold at a loss of…
A: Cash flows from investing activity means the amount of cash inflows and outflows from the sale and…
Q: Rooney Company is a cosmetics manufacturer. Its assembly department receives raw cosmetics from the…
A: Inventory cost is the amount of cost incurred on the inventory in hand. It is a current asset and it…
Q: Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat…
A: A cost may be a product cost or a period cost. The product cost is an inventoriable cost whereas a…
Intermediate Accounting 105
May I please have the solutions to this exercise?
Thank you
Step by step
Solved in 3 steps with 2 images
- 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.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.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.
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.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 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)
- 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.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.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.
- 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. 6.73Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.