The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31,2023:Shareholders' EquityCommon stock, 240 million shares at $1 parPaid-in capital-excess of parPaid-in capital-share repurchaseRetained earningsRequired:1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Preparethe entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed astreasury stock.a. On February 5, 2024, TNL Systems purchased 6 million shares at $10 per share.b. On July 9, 2024, the corporation sold 2 million shares at $12 per share.c. On November 14, 2026, the corporation sold 2 million shares at $7 per share.2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches.Assume all net income earned in 2024-2026 was distributed to shareholders as cash dividends.($ in millions)$2401,68011,100Complete this question by entering your answers in the tabs below.Reg 1 Retired Req 1 TreasuryStockReq 21Prepare the entries for both the purchase and subsequent resale for the above transactions of the shares assuming the shares areretired.View transaction listNote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).Journal entry worksheet

Preparation of the entries assuming the shares are (a) retired and (b) viewed as treasury stock are…

Answered: 1. During 2024, TNL Systems reacquired…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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For the year ended December 31, 2024, Norstar Industries reported net income of $980,000. At January 1, 2024, the company had 1,130,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 May 24 June 1 Sold 100,000 shares in a public offering Declared and distributed a 5% stock dividend Issued 114,000 shares as part of the consideration for the purchase of assets from a subsidiary Required: Compute Norstar's earnings per share for the year ended December 31, 2024. Show computations. Numerator Denominator Earnings per Share
es On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.6 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5), View transaction list Journal entry worksheet 1 2 3 Record the entry for…
(Give the exaplanation of formula and concept.do not provide plagarised content otherwise i dislike) Isle Royale Inc. bought 22,500 shares of the voting common stock of Lake Clark Company in January 2023. In December, Lake Clark Company announced $202,900 net income for 2023 and declared and paid a cash dividend of $8.00 per share on all 202,000 shares of its outstanding common stock. Calculate Isle Royale Inc.'s dividend revenue from Lake Clark Company in December 2023.○ $180,000○ $22,600○ $0○ $1,616,000
Submit Assume that, on January 1, 2021, Everest Corporation paid $1,656,000 for its investment in 82,800 shares of Beam Company Further, assume that Beam has 230,000 total shares of stock issued. The book value and fair value of Beam's identifiable net assets were both $460,000 at January 1, 2021. The following information pertains to Beam during 2021: Net income Dividends declared and paid Market price of common stock on 12/31/2021 $230,000 $ 69,000 22/share 17 What amount would Everest report in its year-end 2021 balance sheet for its investment in Beam? Multiple Choice $1,955,000. $1,817,000. $1,713,960. None of these answer choices are correct. raw MacBook Air
On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha of this treasury stock for $21,000. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. View transaction list Journal entry worksheet < 1 2 Record the purchase of 8,500 shares of its own stock for $93,500 cash. Note: Enter debits before credits. Date May 03 Record entry General Journal Clear entry Debit Credit View general journal
On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,250. On December 31, 2023, Akron, Incorporated, acquires an additional 25 percent of Zip Company's outstanding common stock for $95,000. During the next two years, the following information is available for Zip Company: Year 2022 2023 2024 Income $ 82,000 94,000 Dividends Common Stock Fair Declared Value (12/31) $ 325,000 190,000 477,000 $ 7,400 14,800 At December 31, 2023, Zip reports a net book value of $294,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2023. a1. Equity income a2. Investment in Zip account b1. Reported income b2. Investment in Zip account Required: a. Assume Akron applies the equity method to its Investment in Zip account: 1. What amount of equity income should Akron report for…
On January 1, 2022, Mojito Corporation purchased 20% (20,000 shares) of the outstanding stock of Dulcinea Corporation for $153,000. During 2022, Dulcinea Corporation paid total dividends of $45,000 and earned $80,000 in net income. At the end of 2022, Dulcinea Corporation’s stock had a fair market value of $155,000. Required: Prepare the journal entries that Mojito would make during 2022 assuming that they do NOT have significant influence over Dulcinea as a result of their stock ownership (i.e. fair value method). Prepare the journal entries that Mojito would make during 2022 assuming that they do have significant influence over Dulcinea as a result of their stock ownership (i.e. equity method).
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income Dividends declared and paid Market price of common stock on 12/31/2021 Multiple Choice $2,081,200. What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee? $1,949,200. $220,000 66,000 $1,847,560. $ $ 26/share
On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On September 30, 2020, Star Corp. acquired 500 shares of its common stock at $15 per share. What amount is debited to Common Stock (a) under the treasury stock method and (b) under a direct stock retirement? Select one: a. Treasury Stock Method Direct Retirement $1,000 $1,000 b. Treasury Stock Method Direct Retirement $0 $1,000 c. Treasury Stock Method Direct Retirement $0 $9,000 d. Treasury Stock Method Direct Retirement $1,000 $0
On March 31, 2024, Chow Brothers, Incorporated, bought 7% of KT Manufacturing’s capital stock for $51.2 million. KT’s net income for the year ended December 31, 2024, was $80.4 million. The fair value of the shares held by Chow was $35.8 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: Prepare all appropriate journal entries related to the investment during 2024. Assume that Chow sold the stock on January 20, 2025, for $30.4 million. Prepare the journal entries to record the sale.
FMC Corp has 100 million shares of $1 par common stock authorized. The transactions below caused changes in FMC's outstanding shares. January 4, 2021: Repurchased and retired 1.90 million shares at $8.90 per share. June 25, 2021: Repurchased and retired 2.90 million shares at $2.90 per share. Prior to the transactions, FMC's shareholders' equity included the following: Common stock, 80.90 million shares at $1 par $ 80,900,000 Paid-in capital—excess of par 234,610,000 Retained earnings 129,000,000 Required:Prepare the journal entries to record the repurchase and retirement of the shares. (Do not round your per share amounts. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

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