10. State what would happen to the equity of Kicking Horse Oil Ltd. aftereach of the following independent transactions:dsi)S(a) The founders of the company made an initial investment ofi bobals $100,000, receiving 100,000 common shares in exchange.(b) The company borrowed $250,000 from a bank.(c) The company listed its shares on the Calgary Stock Exchange andbonn sold 1,000 common shares to the general public for $1,000,000.(d)The company sold 100,000 10% cumulative preference shares toS1 the general public for $100,000.215 ter 5 The Balance Sheet (2): Liabilities and Equity(e) The company invested $1,250,000 in oil exploration rights.(f) The company paid $2,000 interest on the bank loan.The oil exploration rights were revalued at $5,000,000.(2 (h)In year 1, the company reported a loss of $50,000.(i) In year 2, the company reported a net income of $200,000.At the end of year 2, the company paid a dividend of $10,000 to thenommo won onenda aizo orh or (g)(j)Sisgal ieni at bnot preference shareholders and $25,000 to the common shareholders.

Owner equity means the amount that belong to the owner of the business. Any profit will increase…

Answered: 10. State what would happen to the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Identify which of the following transaction is a primary market transaction or a secondary market transaction. Explain your answer. Michael bought 2,000 units of KSD shares at RM2.35 per share when KSD shares made an initial public offering of 20,000,000 shares in the market. Razif bought 1,000 units of LOL shares at RM 1.30 per share in the stock market.
12) JAE Corp.'s transactions for the year ended December 31, 20X8 included the following: Purchased real estate for $1,250,000 cash. Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Received a $250,000 cash dividend from an equity investment. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. JAE Corp's net cash used in INVESTING activities for 20X8 was: a) $250,000. b) $500,000. c) $750,000. d) $1,500,000.
Determining paid-in capital for a corporation Aruba Corporation recently organized. The company issued common stock to an investor in exchange for a patent with a market value of $57,000. In addition, Aruba received cash for 6,000 shares of its $10 par preferred stock at par value and 6,500 shares of its no-par common stock at $20 per share. Without making journal entries, determine the total paid-in capital created by these transactions.
48. Help me selecting the right answer. Thank you
3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.
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
s
Sibongile is considering investing in a newly listed company on the JSE, known as Abital Ltd. She comes to you for advice about whether to invest in their bonds or shares, and has collected the following information from the recently published financial statements: Number of outstanding shares 10 000 000 Earnings 25 000 000 Payout ratio 35% Cost of equity 11% Current market price of one share R10 Number of Bonds outstanding 4 000 000 Abital Ltd recently acquired a patent that expires in 3 years. Their earnings are therefore expected to grow at 20% during these 3 years, after which it will decline to a constant 5%. What is the intrinsic value of Abital ltd?
need solution
Al Khuwair Co. purchased a truck for RO 5,000 by issuing 200 shares of RO 10 par value shares for RO 25 per share. Prepare the journal entry for this transaction
9. Mr. JFINEX owns 100 shares of stock in Finance Corporation with a market value of 30,000. The Company declares a stock dividend of 20%. How many shares does JFINEX own after? A) 120 shares with a market value of 24,000 B) 100 shares with a market value of 24,000 C) 120 shares with a market value of 30,000 D) 80 shares with a market value of 30,000
I am having trouble figuring out if I did my calculations correctly for part A and I'm not sure what to do for part B

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS