Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 5, Problem 5.18BE
Computation of Contributed Capital. Using the information from BE5-17 what is the amount of Taxi Cabs contributed capital at the end of the year?
BE5-17 Computation of
| Retained Comings | $1,250,000 |
| Common Stock, $1 Par (200,000 Shares) | $ 200,000 |
| Additional Paid-in-Capital in Excess of Par-Common | $ 775,000 |
| Accumulated other Comprehensive Income | $ 345,000 |
| It reported the following information for the current year | |
| Net Income | $140,000 |
| Unrecognized Pension Costs | $ (67,000) |
| Dividends Declared | $ 10,000 |
| Issued 50.000 Shares of Common Stock for $125,000 | $125,000 |
| Unrealized Losses on Available-for-Sale Investments | $(22,000) |
| Foreign Currency Translation Adjustments—Gain | $ 13,000 |
What is the balance in the retained earnings account at the end of the year?
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At the end of the prior annual reporting period, Barnard Corporation's balance sheet showed the following:
BARNARD CORPORATION
Balance Sheet
At December 31, Prior Year
Stockholders' equity
Contributed capital
Common stock (par $10; 5,100 shares)
Paid-in capital
Total contributed capital
Retained earnings
Total stockholders' equity
$ 51,000
13,000
64,000
49,000
$ 113,000
During the current year, the following selected transactions (summarized) were completed:
a. Sold and issued 2,000 shares of common stock at $27 cash per share (at year-end).
b. Determined net income, $53,000.
c. Declared and paid a cash dividend of $2 per share on the beginning shares outstanding.
Required:
Prepare a statement of stockholders' equity for the year ended December 31, current year.
BARNARD CORPORATION
Statement of Stockholders' Equity
Common Stock
Shares
Amount
Paid-in
Capital
Retained
Earnings
Total
Stockholders'
Equity
Balances as of December 31, prior year
Balances as of December 31, current year
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
Line Item Description
CurrentYear
PreviousYear
Accounts payable
$184,000
$162,000
Current maturities of serial bonds payable
240,000
240,000
Serial bonds payable, 10%
1,190,000
1,430,000
Common stock, $1 par value
60,000
60,000
Paid-in capital in excess of par
590,000
600,000
Retained earnings
2,040,000
1,630,000
The income before income tax expense was $400,400 and $350,400 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place.
Line Item Description
Ratio
Current year
fill in the blank 1
Previous year
fill in the blank 2
b. Determine the times interest earned ratio for both years. Round your answers to one decimal place.
Line Item Description
Ratio
Current year
fill in the blank 3
Previous year…
REQUIREMENT : Compute for the Net Sales
At the beginning of the current year, Glasgow Company started business and issued share capital, 60,000 shares with P100 par, for the following considerations: Cash - P500,000; Building with useful life of 15 years - P4,500,000; and Land - P1,500,000.
An analysis of the bank statements showed total deposits, including the original cash investment, of P3,500,000.
The balance in the bank statement on December 31 was P250,000 but there were checks amounting to P50,000 dated in December but not paid by the bank until January of next year.
Cash on hand on December 31 was P125,000 including customers' deposit of P75,000.
During the year, the entity borrowed P500,000 from the bank and repaid P125,000 and P25,000 interest. The proceeds of the loan were credited to the bank account of the entity.
Disbursements paid in cash during the year were as follows: Utilities - P100,000; Salaries - P100,000; Supplies - P175,000; Taxes - P25,000; and Dividends -…
Chapter 5 Solutions
Intermediate Accounting
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