Chapter 13, Problem 4IFRE

Included in the December 31, 2018, Jacobi Company balance sheet was the following shareholders equity section: The company engaged in the following stock transactions during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 270,000).

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%.

Attached is the company details and journal that was created. Using this information,  now prepare the: Stockholders equity section of the balance sheet at December 31, 2021. The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. total stockholders’ equity.

The following data were taken from the balance sheet accounts of Blossom Corporation on December 31, 2019. Current assets $554,000 Debt investments (trading) 596,000 Common stock (par value $10). 455,000 Paid-in capital in excess of par 148,000 Retained earnings 800,000 Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when no entry is required, select "No Entry" for the account titles and enter 0 for the amount is entered. Do not indent manually. amounts.) (a) A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $37. (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 $105,000 and a fair value of $133,000.

Philippine Accounting Standard The following transactions were taken from the records of Marimar Company for you to prepare a statement of changes in equity for the year ended December 31, 2019. After preparing the statement of changes in equity, provide a paragraph explaining the importance of providing this information to the varied users of financial statements. On January 1, 2019, Marimar company had 3,000,000 authorized ordinary shares of P5 par, of which 1,000,000 shares were issued and outstanding on that date. Account balances appear for the shareholders’ equity items of Marimar company on January 1, 2019:Ordinary share capital 5,000,000Share Premium 3,750,000Retained Earnings 1,625,000The following transactions transpired during the year:January 6 Iissued at P54 per share, 50,000 shares of P50 par, 9% cumulative, convertible preference share capital. Marimar had 125,000 authorized preference shares. Feb. 3 Reacquired 10,000 ordianry shares for P16 per share. Marimar uses the…

The following data were taken from the balance sheet accounts of Wildhorse Corporation on December 31, 2024. Current assets Debt investments (trading) Common stock (par value $10) Paid-in capital in excess of par Retained earnings a. b. C. $513,000 605,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) 501,000 Date 144,000 910,000 A 6% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $40. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of $104,000 and a fair…

The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Incorporated for the 2024 fiscal year. The following additional information from an analysis of Merry's financial position is available: Current ratio = 1.352272; Acid - test ratio = 0.5769817; Debt to equity ratio = 0.6063000. Required: Compute the missing amounts in the balance sheet. Note: Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar. MERRY INTERNATIONAL INCORPORATED Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets \table[[Cash and cash equivalents,,510]. [Accounts and notes receivable]. [Inventory], [Other,, 460], [Total current assets], [Property and equipment, net,1,322,], [Intangible assets, net]. [Investments, 260,], [Notes and other receivables, net,1,276,].[Other assets, 1, 152,]. [Total long-term assets], [Total assets]. [Liabilities and Shareholders' Equity],…

The comparative statements of shareholders' equity for Company A are shown below. They follow the fiscal years ending December 31, 2019, 2020, and 2021.Using the statements as the guide, compute earnings per share (EPS) as they would have appeared on the income statements for:December 31, 2019December 31, 2020December 31, 2021No potential common shares were outstanding during any of the periods shown above. COMPANY A Statements of Shareholders' Equity For the Years Ended December 31, 2019, 2020, and 2021 ($ in millions)                       Total   Preferred Common Additional   Share-   Stock, $10 Stock, $1 Paid-in Retained holders'   par par Capital Earnings Equity Balance at Jan. 1, 2019               55            495           1,878                    2,428 Sale of preferred shares                         10               470                          480 Sale of common shares, 7/1                 9              81                            90…

Included in the December 31, 2018, Jacobi Comapany balance sheet was the following share holders’ equity section. 1. Prepare journal entries to record the preceding transactions.                       2. Prepare the December 31, 2019, shareholders’ equity section (assume that 2019 net income was $270,000).