Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 13, Problem 3BP
1.
To determine
Describe the transactions for the given
2.
To determine
Complete the given table in the given format.
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Profitability ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015:
December 31 December 31 December 31
20Y7
20Y6
20Y5
$225,000
$204,000
80,000
80,000
32,000
32,000
Total assets
Notes payable (8% interest)
Common stock
Preferred 5% stock, $100 par
(no change during year)
Retained earnings
16,000
77,430
16,000
60,430
Check My Work
$182,000
80,000
32,000
The 2017 net income was $17,800, and the 20Y6 net income was $13,230. No dividends on common stock were declared between 2015 and 2017. Preferred dividends
were declared and paid in full in 2016 and 2017.
16,000
48,000
a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When
required, round your answers to one decimal place.
2017
8.3 X %
15.22 ✔%
5.6 X %
20Y6
6.9 X %
12.94%
-8.66 X %
Return on total assets
Return on stockholders equity
Return on common…
Statement of stockholders' equity
Financial information related to Webber Company for the month ended June 30, 20Y7, is as follows:
Common Stock, June 1, 20Y7
Stock issued in June
Net income for June
Dividends during June
Retained earnings, June 1, 20Y7
Balances, June 1, 20Y7
Issuance of common stock
Net income
Dividends
$59,000
Balances, June 30, 20Y7
41,000
Prepare a statement of stockholders' equity for the month ended June 30, 20Y7. If an amount box does not require an entry, leave it blank or enter "0".
Webber Company
Statement of Stockholders' Equity
For the Month Ended June 30, 20Y7
101,490
11,160
774,400
Common Stock Retained Earnings
59,000 ✓
774,400 ✓
41,000✔
Total
DO
101,490
11,160
Ratio the liabilities to stockholders equity and times interest earned. following data were taken from the financial statement of Hunter Inc.for December 31st of two recent years:
Current year
accounts payable
$434,000.
Current maturity.
290,000
Serial bonds payable, 10%
1,190,000
Common stock,$1 par value
70,000
Paid- in capital in excess of par
700,000
Retained earnings
2,420,000
Previous year
$127,000
290,000
1,480,000
90,000
700,000
1,920,000
The income before income tax expense was $518,000 and $453,000 for the camera in previous years respectively.
A. Determine the ratio of liabilities to stockholders Equity at the end of each year. Round to one decimal place.
Current year
Previous year
B. Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
Previous year
C. The ratio of liabilities to stockholders Equity has _______and the number of times bond interest charges were earned has_______ from…
Chapter 13 Solutions
Principles of Financial Accounting.
Ch. 13 - A corporation issues 6,000 shares of 5 par value...Ch. 13 - A company reports net income of 75,000. Its...Ch. 13 - A company has 5,000 shares of 100 par preferred...Ch. 13 - A company paid cash dividends of 0.81 per share....Ch. 13 - Prob. 5MCQCh. 13 - What are organization expenses? Provide examples.Ch. 13 - How are organization expenses reported?Ch. 13 - Prob. 3DQCh. 13 - What is the difference between authorized shares...Ch. 13 - Prob. 5DQ
Ch. 13 - List the general rights of common stockholders.Ch. 13 - What is the difference between the market value...Ch. 13 - Identify and explain the importance of the three...Ch. 13 - Prob. 9DQCh. 13 - How does declaring a stock dividend affect the...Ch. 13 - What is the difference between a stock dividend...Ch. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - How is book value per share computed for a...Ch. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Issuance of common stock Prepare the journal entry...Ch. 13 - Issuance of par and stated value common stock...Ch. 13 - Issuance of no-par common stock Prepare the...Ch. 13 - Prob. 5QSCh. 13 - Accounting for cash dividends Prepare journal...Ch. 13 - Prob. 7QSCh. 13 - Accounting for small stock dividend The...Ch. 13 - Prob. 9QSCh. 13 - Accounting for dividends For each of the following...Ch. 13 - Preferred stock issuance and dividends 1. Prepare...Ch. 13 - Dividend allocation between classes of...Ch. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Purchase and sale of treasury stock On May 3,...Ch. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - For each situation, identify whether it is treated...Ch. 13 - Prob. 19QSCh. 13 - Basic earnings per share Murray Company reports...Ch. 13 - Epic Company earned net income of 900,000 this...Ch. 13 - Price-earnings ratio Compute Topp Companys...Ch. 13 - Prob. 23QSCh. 13 - Book value per common share The stockholders...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Accounting for par, stated, and no-par stock...Ch. 13 - Recording stock issuances Prepare journal entries...Ch. 13 - Stock issuance for noncash assets Sudoku Company...Ch. 13 - On June 30, Sharper Corporations stockholders...Ch. 13 - Prob. 7ECh. 13 - The stockholders equity section of TVX Company on...Ch. 13 - Prob. 9ECh. 13 - Yorks outstanding stock consists of 80,000 shares...Ch. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - In Draco Corporations first year of business, the...Ch. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Price-earnings ratio computation and...Ch. 13 - Prob. 19ECh. 13 - The equity section of Cyril Corporations balance...Ch. 13 - Prob. 21ECh. 13 - Stockholders equity transactions and analysis...Ch. 13 - Prob. 2APCh. 13 - Prob. 3APCh. 13 - The equity sections for Atticus Group at the...Ch. 13 - Prob. 5APCh. 13 - Stockholders equity transactions and analysis...Ch. 13 - Balthus Corp. reports the following components of...Ch. 13 - Prob. 3BPCh. 13 - Prob. 4BPCh. 13 - Prob. 5BPCh. 13 - Santana Rey created Business Solutions on October...Ch. 13 - Prob. 1AACh. 13 - Use the following comparative figures for Apple...Ch. 13 - Prob. 3AACh. 13 - Prob. 1BTNCh. 13 - Access the March 1, 2017, fi ling of the 2016...Ch. 13 - Prob. 5BTN
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- Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 20Y3, are as follows: The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of 0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for 34,320. Mar. 15. Sold all of the treasury stock for 6.75 per share. Apr. 13. Issued 200,000 shares of common stock for 8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is 7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for 6 per share. Dec. 30. Declared a 0.08-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y3. 4. Prepare the Stockholders Equity section of the December 31, 20Y3, balance sheet Using Method 1 of Exhibit 8.arrow_forwardStatement of stockholders equity; net loss Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30, 20Y5, are as follows: Prepare a statement of stockholders equity for the year.arrow_forwardThe income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.arrow_forward
- Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $697,000 $182,000 Current maturities of serial bonds payable 430,000 430,000 Serial bonds payable, 10% 1,750,000 2,180,000 Common stock, $1 par value 90,000 100,000 Paid-in capital in excess of par 900,000 910,000 Retained earnings 3,120,000 2,480,000 The income before income tax was $610,400 and $534,100 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year Previous year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year c. The ratio of liabilities to stockholders' equity has and the times interest earned…arrow_forwardRatio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $570,000 $280,000 Current maturities of serial bonds payable 500,000 500,000 Serial bonds payable, 10% 2,250,000 2,750,000 Common stock, $1 par value 90,000 100,000 Paid-in capital in excess of par 910,000 920,000 Retained earnings 3,150,000 2,510,000 The income before income tax expense was $797,500 and $697,800 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year Prior year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Prior year c. The ratio of liabilities to stockholders' equity have improved and the…arrow_forwardRatio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $570,000 $280,000 Current maturities of serial bonds payable 500,000 500,000 Serial bonds payable, 10% 2,250,000 2,750,000 Common stock, $1 par value 90,000 100,000 Paid-in capital in excess of par 910,000 920,000 Retained earnings 3,150,000 2,510,000 The income before income tax expense was $797,500 and $697,800 for the current and prior years, respectively. b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Prior yeararrow_forward
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