2021 statement of financial position of
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4-15. ABC Company retired 50,000 ordinary shares, P5 par value, which it held in the treasury at an average cost of P26 per share on December 31, 2021. The balance in ABC's shareholders' equity accounts before recording the retirement of the treasury shares are:
Ordinary share capital 1,080,000
Share premium 1,500,000
Treasury shares (at cost) 1,300,000
ABC should reported ordinary shares outstanding in its December 31, 2021
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- 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.Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.D1.
- On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common Stock, 100,000 issued $2 Par $200,000 Paid in capital in excess of par 800,000 Paid in capital share repurchase 5,500 Retained earnings 528,000 Treasury stock (2,000 shares at cost) (24,000) During 2021, Rebel Corporation had the following transactions dealing with its common shares: Jan. 15 Purchased 2,000 shares for immediate retirements at $12 per share. Feb. 10 Purchased 5,000 shares as treasury shares at $13 per share. April 1 Reissued 3,000 treasury shares at $11 per share. June 25 Retired 1,000 treasury shares when market value of each share was $12.50. July 1 Declared a cash dividend of 50 cents per share, payable…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 $0T1.
- On December 31, 2023, Rulz Corporation's balance sheet reported the following. $ 1,000,000 4,300,000 5,310,000 (690,000) Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (23,000 shares at cost) During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. View transaction list Journal entry worksheet < 1 Record the entry to reclassify treasury shares as retired shares.WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 240 1,680 1 1,100 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 Feb ary 5, 2021, TNL Systems purchased 6 million shares at $10 per share. On July 9, 2021, the corporation sold 2 million shares at $12 per share. On November 14, 2023, the corporation sold 2 million shares at $7 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…
- 1.How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)? 2.How much is the TOTAL share premium?A company retired 50,000 shares of P5 par value common stock it held in treasury at an average cost of P26 per share on December 31, 2022. The balances of stockholder's equity accounts before recording the retirement of the treasury stock are Common stock 1,080,000 Additional paid-in capital 1,500,000 Retained earnings 1,800,000 Treasury stock, at cost 1,300,000 The company should report common stock outstanding in the December 31,2022 balance sheet ofOn January 1, 2020, Volume Company had the following account balance carried over from the previous year. It had 42,000 outstanding shares with a par value of P10. During the year, it repurchased 2,000 shares as treasury for P20 each. The beginning balance of treasury shares were reissued at P16 each. Half of the newly purchased treasury shares were retired. Share Capital 450,000 Share Premium- Ordinary 90,000 Share Premium- Treasury 3,000 Retained Earnings 128,000 Total Shareholders' Equity 626,000 Questions: 1. What is the ending balance of the Share Capital? 2. What is the ending balance of the Share Premium - Ordinary? 3. What is the ending balance of the Share Premium - Treasury?
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