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May 24, 2024
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Question 23 2/2ptsil Question 24 2/2pts Consider the following situation then evaluate statements 1,2, and 3 as True or False. How does the purchase of treasury stock affect asset and equity accounts? Assume In October 2020 the board of directors of Blanker's Holdings declared an annual that the purchase is made with cash. dividend of $100,000. The dividend was paid in January 2021. Blanker's Holding fiscal year is the same as the calendar year. Statement 1. Blanker's Retained Earnings was * Assets decrease and equity decreases immediately reduced by $100,000 when the dividend was declared in October. Statement 2. In Blanker's October Income Statement a $100,000 dividend expense was recognized. Statement 3. Because the dividends were not paid out until January 2021, Blanker's FY2020 Statement of Cash Flows will not include the October 2020 dividend. Only Statement 1 is True Only Statement 2 is True Question 25 242EE Only Statement 3 is True (True/False). The declaration of a stock dividend does not impact retained earnings. All three Statements are True Correct! All three Statements are False — Statements 1 and 3 are True but Statement 2 is False Statements 2 and 3 are True but Statement 1 is False Question 26 2/2pts Statements 1 and 2 are True, But Statement 3 is False Consider both S - 1. Financial mustibei 3 dif a company owns more than 20% of another company. Statement 2. If a firm ¢ lid: financial the portion of company (or companies) not owned by the firm must be reported separately in the Stockholder's Equity section of the consolidated statements. * Only Statement 2 is True Downloaded by Shubh kh (shubhkhose.sk@gmail.com) Downloaded by Shubh kh (shubhkhose.sk@gmail.com)
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Related Questions
Question 46
During 2021, Stout Inc. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Stout,
converted into common shares of Stout
$ 540,000
Payment in 2021 of cash dividend declared in 2020 to
preferred shareholders
279,000
Payment for the early retirement of long-term bonds payable
(carrying amount $3,930,000)
3,975,000
Proceeds from the sale of treasury stock (on books at cost of $387,000)
450,000
The amount of net cash used in financing activities to appear in Stout's statement of cash flows for 2021 should be
$3,264,000.
$2,985,000.
$3,822,000.
$3,804,000.
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What is the company common stock’s “Book Value” per share?
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View Policies
Current Attempt in Progress
The following information was extracted from the accounts of Sandhill Co. at December 31, 2020:
CR(DR).
Total reported income since incorporation
$4810000
Total cash dividends paid
(2480000)
Unrealized holding loss on available-for-sale securities
(368000)
Total stock dividends distributed
(604000)
Prior period adjustment, recorded January 1, 2020
226000
What should be the balance of retained earnings at December 31, 2020?
O $1876000.
O $ 1584000.
O $ 1952000.
O $ 3042800.
Save for Later
Attempts: 0 of 1 used
Submit Answ
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What is the company common stock’s “Book Value” per share ?
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What is the total dollar value of dividends paid in 2020?
Question 16 options:
No dividends were paid by Avett Inc. in 2020
$889
$1,027
$473
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What is your company’s common and preferred stock par or stated value? 2019
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The net amount to be recognized in 2021 comprehensive income is
The net amount to be recognized in 2022 comprehensive income is
The net unrealized gain/loss at December 31, 2022 in accumulated other comprehensive income in shareholders' equity is
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What is your company’s common and preferred stock par or stated value? 2019
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Compute the following:
5. Assuming that on July 1, 2020, Kangaroo Company purchased its own share atP10.00. How much is the book value per share for the year 2020?6. Assuming that there is a cumulative and participating preference share, how thiswill affect the book value per share computation? Explain briefly.
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Albay Company had the following shareholders' equity on
Problem 23-16 (PHILCPA Adapted)
January 1, 2020:
Preference share capital, P100 par, 10% cumulative
Ordinary share capital, no par, P5 stated value
Share premium
Retained earnings
Treasury ordinary shares
2,000,000
5,150,000
3,500,000
4,000,000
400,000
On January 15, 2020, the entity formally retired all
the 30,000 treasury shares.
The treasury shares were originally issued at P10 per
share.
The entity owned 10,000 shares of Digos Company
purchased for P800,000. The Digos shares were
included in noncurrent equity securities.
On December 31, 2020, the entity declared a dividend
in kind of one share of Digos for every hundred
ordinary shares held by a shareholder.
The fair value of the Digos share is P90 on December
31, 2020. The dividend in kind was distributed on
March 15, 2021 when the fair value of Digos share is
P95.
On December 31, 2020, the entity declared the yearly
cash dividend on preference share, payable on January
15,…
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1. How many shares of its stock did 3M repurchase during fiscal 2019?
2. What journal entry did 3M make to record its stock repurchases in fiscal 2019?
3. What journal entry did 3M make to record stock options granted to employees in fiscal 2019?
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How many shares of common and preferred stock does your company have: Authorized? Issued? Outstanding?
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Question 15 of 17
Marigold Corp. had the following information in its financial statements for the year ended 2020 and 2021:
Common cash dividends for the year
$19700
2021
Net income for the year ended 2021
127000
Market price of stock, 12/31/21
24
Common stockholders' equity, 12/31/20
2150000
Common stockholders' equity, 12/31/21
2740000
Outstanding shares, 12/31/21
147000
Preferred dividends for the year ended
29900
2021
What is the book value per share for Marigold Corp. for the year ended 2021?
O $18.64
O $14.63
O $18.44
O $18.31
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Problem 5: Color Company began business in
January of 2021. During the year, Color purchased
a portfolio of securities listed below. In its
December 31, 2021 balance sheet, Color
appropriately reported a P300,000 debit balance in
its "Unrealized gain/loss" account. The composition
of the securities did not change during the year
2022. Pertinent data are as follows:
Security
BE (FVPL)
BI (FVOCI)
KO (FVOCI)
Cost
P2,000,000
3,600,000
3,900,000
P9,500,000
Market Value, December 31, 2022
P2,750,000
3,250,000
4,000,000
P10,000,000
5.1 How much is the carrying value of
Investment on December 31, 2021?
5.2 How much is the unrealized gain or loss
that should presented in the Equity section of
the Balance Sheet on December 31, 2022?
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Current Attempt in Progress Sunland Company acquired 22000 shares of its own common stock at $21 per share on February 5, 2020, and sold 11000 of these shares at $28 per share on August 9, 2021. The fair value of Sunland's common stock was $25 per share at December 31, 2020, and $26 per share at December 31, 2021. The cost method is used to record treasury stock transactions.
What account(s) should Sunland credit in 2021 to record the sale of 11000 shares?
O Treasury Stock for $231000 and Retained Earnings for $77000.
O Treasury Stock for $275000 and Retained Earnings for $33000.
O Treasury Stock for $308000.
O Treasury Stock for $231000 and Paid-in Capital from Treasury Stock for $77000.
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Treasury Stock Transactions
Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of the
reacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.
a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank.
Feb. 11 Treasury Stock
Cash
Apr. 30 Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Aug. 22 Cash
Paid-In Capital from Sale of Treasury Stock
Treasury Stock
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Find earnings per share 2019
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Related Questions
- Question 46 During 2021, Stout Inc. had the following activities related to its financial operations: Carrying value of convertible preferred stock in Stout, converted into common shares of Stout $ 540,000 Payment in 2021 of cash dividend declared in 2020 to preferred shareholders 279,000 Payment for the early retirement of long-term bonds payable (carrying amount $3,930,000) 3,975,000 Proceeds from the sale of treasury stock (on books at cost of $387,000) 450,000 The amount of net cash used in financing activities to appear in Stout's statement of cash flows for 2021 should be $3,264,000. $2,985,000. $3,822,000. $3,804,000.arrow_forwardWhat is the company common stock’s “Book Value” per share?arrow_forwardView Policies Current Attempt in Progress The following information was extracted from the accounts of Sandhill Co. at December 31, 2020: CR(DR). Total reported income since incorporation $4810000 Total cash dividends paid (2480000) Unrealized holding loss on available-for-sale securities (368000) Total stock dividends distributed (604000) Prior period adjustment, recorded January 1, 2020 226000 What should be the balance of retained earnings at December 31, 2020? O $1876000. O $ 1584000. O $ 1952000. O $ 3042800. Save for Later Attempts: 0 of 1 used Submit Answarrow_forward
- What is the company common stock’s “Book Value” per share ?arrow_forwardWhat is the total dollar value of dividends paid in 2020? Question 16 options: No dividends were paid by Avett Inc. in 2020 $889 $1,027 $473arrow_forwardWhat is your company’s common and preferred stock par or stated value? 2019arrow_forward
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ISBN:9781337788281
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Publisher:Cengage Learning

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