1: Cyrell Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2019, the retained earnings amounted to P3,000,000. In March 2019, the entity reacquired 50,000 treasury shares at P20 per share. In June 2019, the entity sold 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the current year was P600,000. What total amount should be reported as retained earnings at year-end? What amount should be reported as unappropriated retained earnings at year-end?
Q: Which of the following is not an income for income tax purposes?
A: Assuming the question related to tax in Phillipines --- ...
Q: What are the principal reasons for using a special payroll bank account
A: A payroll account is a separate bank account for your business that is exclusively used to pay emplo...
Q: Problem 10-15 (IFRS) basy Company provided the following statement of financial year: 130,000 500,00...
A: Solution Disclosures means facts and information known to public . All facts which are needed to kno...
Q: In January 2014, ABC Corporation, a new corporation, issued 10,000 shares of common stock with a par...
A: Share Repurchase or Share Buyback means when company buy backs it's share from the investors. The c...
Q: Gilmore Electronics had the following data for a recent year:Cash sales ...
A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit th...
Q: Show your solution pls On March 1, 2016, Rose Corporation issued at 103 plus accrued interest, one h...
A: Bonds are issued by governments and businesses when they need to generate revenue. When you buy a bo...
Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year, eac...
A: A self-liquidating loan seems to be a sort of short-term loan wherein the borrowed money has been us...
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC ...
A: A dividend refers to the amount that the shareholders receive from the company in which they have in...
Q: b. Prepare a variable costing income statement for the three products. Enter a net loss as a negativ...
A: A variable costing income statement is one of which all variable exp are deducted from revenue to ar...
Q: A mortgage loan should be fully repaid in 48 monthly installment of Rp5 million. If the loas is Rp20...
A: The formula of loan amortization: Loan amortization = Total installment - outstanding balances * ( r...
Q: advantages and disadvantages of the scattergram method as compared to the high-low method?
A: Solution High-low method takes high level activity and low level activity and measure the total cost...
Q: The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of ...
A: Journal is the book of original entry in which all the transactions relating to business are recorde...
Q: Company išsued 10,000U shares of alue of $5 and a fair value of $25 per share of preferred stock wit...
A: Stockholders are the Persons of entities whom the company issues its ownership rights in the form of...
Q: 5.Pedro earned and incurred the following income and expenses: Compensation (exclusive of mandatory ...
A: Graduated tax rates in Philippines is applied to the business taxable income , the individuals who h...
Q: Statement 1: Profit is any amount over and above that required to maintain the capital at the beginn...
A: Profit: Amount of net income gained after deducting all dollar expenses from total revenue is referr...
Q: The patent, which originally cost P 17,000, is being amortized to Administrative Expense over a 17-y...
A: The entries passed in the books of accounts in order to fix the errors or incorrect entries which ha...
Q: d to deduct a share of head office costs in its operating statement before arriving at ‘net profit’,...
A: Budgeted operating statement Businesses can use an operational budget to help them plan and achiev...
Q: PA7-2 (Algo) Analyzing Make-or-Buy Decision [LO 7-2, 7-4] Mohave Corp. is considering outsourcing pr...
A: The incremental analysis is performed when two alternatives are available with the organisation.
Q: Given the following: Current Assets $ 18,000 Accounts Receivable $ 3,000 Current Liabilitie...
A: Current ratio = Total current assets / Total current liabilities Acid test quick ratio = Quick Asset...
Q: The declaration and issuance of a dividend in shares (stock dividend) greater than 25% of the shares...
A: In place of cash payments, a stock dividend seems to be a distribution of corporation shares to stoc...
Q: A labor saving device system save $2.000 per year for five (5) years. It can be installed at a cost ...
A: The rate of return on planned investment = IRR of the project
Q: Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue an...
A: Solution:- Given, AirQual Test Corporation provide on-site ait quality testing services. The company...
Q: of the partne claims exce er two partm
A: Given: Mactal capital balance=P 350,000 Macadang capital balance =P 250,000 Pangan capital balance =...
Q: Vergo Company acquired a motor vehicle for P1,000,000 for the use of one of its on-call employees. C...
A: Fringe Benefit Taxes To Calculate the Fringe benefit taxes in Philippines it depends upon the nature...
Q: Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined benef...
A: Pension expense is the cost to employer to maintain the employee's pension plan. The employee's pens...
Q: not traded th
A: Capital Gain Tax = 15% Capital Gain on Real Property situated in Philippines = 6% higher of the Sell...
Q: Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows: ...
A: Journal Entries Date Account Titles and Explanation Debit Credit A Depreciation Expenses $...
Q: Income statement Instructions Labels and Amount Descriptions Income Statement Instructions Imaging S...
A: Net Income = Total Revenue - Total expenses Income statement is used to calculated the net income / ...
Q: Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, M...
A: Information from Form W-2, Wages and Tax Statement. Rick Davis Amount ($) wages, tips and other...
Q: If 200 depositors withdraw at t=1, what is the amount of loan the bank needs to sell (in $ of origin...
A: Loan is the amount of money which a lender gives or provides to the borrower who has the surplus fun...
Q: A man bought a machine for P638855 six years ago. It has a salvage value of P46012 four years from n...
A: In the given question, machine was purchased 6 years ago and it still has a life of 4 years after wh...
Q: Calculate the Total Cost of Production. If the actual GBE amounted to 52.000€, calculate the amou...
A: Cost of production refers to the cost that is incurred for the production of a good. It includes all...
Q: The Following fringe benefits shall not be subject to basic tax or fringe benefit, except: a) Fring...
A: Fringe Benefit Tax Fringe Benefit Taxes which are taken from the employee of the business entity to ...
Q: Which of the following is excluded from gross income? a. Winnings of Manny Pacquiao from his boxing...
A: Gross Income In Philippines taxes the items which are included in the gross income of the individual...
Q: The maternity leave pay under RA 11210, otherwise known as the 105-Day Expanded Maternity Leave Law,...
A: Solution Maternity leave means leave given to a women when she is pregnant and have a baby.
Q: Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following co...
A: It is the tax deduction on dividends received by a corporation from other corporations in which the ...
Q: Case 1 Steve Ramos owns apartment buildings in Baguio City, and Tagaytay City. Each property has a m...
A: Window-dressing fraud is the deliberate manipulation of financial statements to mislead a company's ...
Q: During 2016, Royal Corporation issued at 105, two hundred of its 8%, P 1,000 bonds in ten years. One...
A: Bonds: Bonds are one of the tradeable security in the stock market that provides fixed rate of inter...
Q: Description Year 1 Year 2 Year 3 Total Distribution $12,000 $18,000 $90,000 Preferred Stock ...
A: The major distinction between preferred and common stock is that preferred stock does not provide sh...
Q: 2. Prepare the Payroll sheet and (Monthly) Remittance Form for Morning Group Ltd for the month of De...
A: Payroll Process It is important for the business entity to maintain the payroll process of the emplo...
Q: At 1 July 2018, Twister Ltd acquired a piece of equipment for a cost of $100,000 which is part of th...
A: Fixed Assets: Fixed assets are acquired by an entity in order to get economic privileges for longer ...
Q: Consider the problem facing two businesses in the cafe market, Starbucks and Waves. Each company has...
A: The answer is stated below:
Q: e year: 30,000 withholding tax, hilHealth and P40,000
A: Gross income refers to the total sum value of money gained by an entoty which is su
Q: Mr. Ron acquired machinery for use in his business. After a strong typhoon, the machinery suffered p...
A: Restoration cost shall be capitalized. And also depreciation shall be deductible on such cost. Resto...
Q: Blossom Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a los...
A: The question is based on the concept of Cost Accounting.
Q: The following information is available for the two production departments (machining and assembly) ...
A: Overhead refers to ongoing business expenditures that are not directly tied to the development of a ...
Q: A Discuss the retirement benefits offered by government for employees in detail. Explain in which ca...
A: The majority of the retirement benefits are made up of workers' leave encashment (employees can accr...
Q: Requirements 1. Perform the preliminary calculation to determine the excess of fair value over book ...
A: Particulars Amount Investment cost @ 45% as of 1st July 2021 240,000 Less: Book value acquired ...
Q: On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following...
A: Stock dividend is the amount of dividend which is distributed in the form of shares or stock. It inc...
Q: Prepare all journal entries Dec Mahmood invested $25,000 cash in his business. Paid office rent for ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
1: Cyrell Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2019, the
What total amount should be reported as retained earnings at year-end?
What amount should be reported as unappropriated retained earnings at year-end?
Step by step
Solved in 3 steps
- 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.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.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)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%.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
- Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?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.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.
- 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. 6.73Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.