3. Al-Busthan corporation has a year end of 31 December. The company has in issue 400,000 Ordinary shares and 15,000, 6% cumulative redeemable preference shares of OMR 10 each. On 1 July 2020, the directors declared an interim dividend of OMR20,000. On 31 December 2020, the directors proposed a final dividend of OMR 25,000. On 1 Feb 2021, at the annual general meeting they proposed final dividend for 2020 which was approved. All the dividends whether equity or preference were paid on 1 Mar 2021. Note that there are no dividend in arrears with regards to preferred stock.
Q: Use these factors to answer the following questions. i PV$1 FV$1 PVA FVA 3 8% 0.79383 1.25971 2.5771…
A: In case of multiple questions, we are allowed to answer only the first question. If you want other…
Q: SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the…
A: Labor spending variance = Standard Labor cost - Actual Labor cost Labor rate variance = (standard…
Q: erest Receivable Bond Carrying Or Interest Discount Amount of Cash Received Revenue Amortization…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: The assembly department has the following production and cost data for the current month. Beginning…
A: Solution Equivalent units represents how much work has been done on a certain numbet of physical…
Q: Paid $43 for an oil change. Paid $405 to install special shelving units, which increase the…
A: Journal entry: A journal entry is the act of recording or keeping track of any financial or…
Q: At the end of the first year of operations, Majestic Company had accounts receivable of P6,000,000,…
A: The allowance for doubtful accounts represents the uncollectible amount of sales made to customers…
Q: 1. In each of the following cases, is the value received by the taxpayer included or excluded from…
A: 1) Excluded by A: Since A is not required for lodging facilities, the value received by A shall be…
Q: The beginning balance of the cash and cash equivalents will be deducted from the increase or…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Happy Company sold a machine in exchange for a P750,000, 5-year, 14% note; interest is payable…
A: The interest revenue is the interest earned by the company during the period.
Q: Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
A: Introduction:- A flexible budget is a series of budgets prepared for various levels of activities.…
Q: Closing entries are made: to make all nominal account balances equal to zero to close all nominal…
A: Closing Entries are the journal entries made at the end of an accounting period. These entries are…
Q: Clara had a business net income of P300,000. She also earned P5,000 commission from selling cellular…
A:
Q: Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget…
A: cash budget: The cash budget refers to the projection of cash movement of a business over a specific…
Q: temzed deductions are an add back for AMT purposes O True False
A: Itemized deductions refer to the sum value of money paid for state and local income or sales taxes,…
Q: ther with a remittance puld Northup recogniz®
A: In consignment sales the consignor provides goods to the consignee to sell. The unsold goods are…
Q: otal assets of the Company are $81000 and its owner's equity is $61000. What is the amount of it
A: Liabilities = Assets - Owner's equity
Q: the predetermined overhead rate with machine usage as the basis
A: Factory overhead allocation: the factory overhead of a company can only be calculated at the end of…
Q: ABC Company, a computer repair shop provided the following information at the end of its first month…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: Arppel Company uses a periodic inventory system and closes its accounts annually on 31 December.…
A: Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory Gross Profit = Net Sales -…
Q: (Liquidity analysis) When firms enter into loan agreements with their bank, it is very common for…
A: Assets are resources that are controlled which results from prior transactions that are expected to…
Q: 1d. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…
A: As per MACRS depreciation table, the depreciation for the second year considering asset belongs to…
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10 %…
A: The Accounting cycle is completed, being starting from identification of financial transactions to…
Q: On October 01, 2019, Benny and Joey pooled their resources in a partnership with the firm taking…
A: Assets = Liabilities + Capital Adjustments made in Joey's assets: Balance - inventory - Allowance…
Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…
A: Transfer price is a price at which a transaction of two related divisions of the same corporation…
Q: rmining federal income withholding found?
A: Wage bracket method is straight forward approach. The wage bracket method of calculating withholding…
Q: 2. Lordinel Trading is owned by Mr. Gamad. As of January 1, 2019, Mr. Gamad's capital balance is…
A: Capital means the amount invested by the owner of the business. It increases with addition…
Q: Use the following to answer questions 14 – 18 - You have been working at a local distributor for the…
A: given Your bi-weekly salary is $1,500. Your average income tax rate is 12% plus FICA taxes at 7.65%.…
Q: The total liabilities of ABC Company for the period ending December 31, 202 amounted to P300,000.…
A: The liabilities are the amount due to be paid to the outsiders including creditors, suppliers, etc.
Q: The transactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash flow from operating activities is calculated using Direct method in this question. Under direct…
Q: stock plus land with a 5,848. Auto Corp's la 160 prior to the exch s had a basis of $2,19:
A: The answer has been mentioned below.
Q: Prepare the cash budget with the projected income statement of ABC Company from March to June
A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…
Q: Profit margin, investment turnover, and return on investment The condensed income statement for the…
A: The total amount paid by your organization as a cost directly related to the sale of products is…
Q: Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term…
A: Balance sheet: Balance sheet is an accounting report that furnishes an overall financial status of a…
Q: $100,800. The book value of the bonds in S's books at the beginning of 2022 was $98,400. What is the…
A: When a company issues a bond, it imposes a long-term loan for which interest payments are made from…
Q: Definition of the following in Accounting 1. Cost of Patent Inclusions 2. Impairment of Trademark…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: January 25 Received $1150 cash for laundry services provided in January 2022. JOUonal eny xy
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Additional cash investment by the owner during the year P100,000 Cash collections from account…
A: The cash flow statement is prepared to record the cash flow from different activities such as…
Q: Question Account titles found in the adjusted trial balance may be classified into real accounts…
A: Trial balance means the statement where all the account has been listed and balances is shown in…
Q: A company records its various business transactions in the book of original entries using various…
A: Various transactions are evidenced by various documents. Like, sales are evidenced by sales…
Q: Which of the following statements is incorrect? A bank providing a loan to the entity is not a…
A: D) An entity needs to disclose if it has a common director with another entity because there might…
Q: Shannon's income tax rate was 25% in 2021 and previous years. During the course of the audit, the…
A: Fair value adjustment Investment balance as reported(Assumed) 250000 Error adjustment 40000…
Q: Consider the following situations and determine (1) which type of liability should be recognized…
A: Liability: Liability is an obligation of a company towards the lending party. They can be short term…
Q: An adjusting entry O involves parties external to the entity O is recorded anytime of the accounting…
A: Adjustment entry means the entry made at the end of specified period to adjust some balance . For…
Q: ne that in the first step of t Corp. will exchange $6,071 stock plus land with a fair 6,714 for all…
A: The answer has been mentioned below.
Q: Impact on Impact on profit 1 Account Debit Credit current ratio margin Payroll expense 72,000 3…
A: Current ratio is calculated by dividing the current assets with current liabilities. Current ratio =…
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…
A: 1. Standard quantity of kilograms allowed = No. of helmets x Standard quantity required to make 1…
Q: equire
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: a) What finance charge will Jack pay? b) What is the APR to the nearest half percent?
A: In this question, we have to compute the finance charge and APR by subtracting the cash price from a…
Q: Explain the fuel benefit and the income tax and national insurance contributions consequences of an…
A: Where the employer pays for any fuel used privately by the employee, there is an additional scale…
Q: Prepare a budget report based on flexible budget data to help Joe -хpenses.)
A: In this question, we have to calculate the budget report for the swift company clothing department.…
Step by step
Solved in 2 steps
- 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%.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.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. 6.73
- 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.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000ABC SAOG has in issue 2,000,000 ordinary shares of OMR 0.500 fully paid. On 31st Dec 2018 management board has decided to pay a dividend of 100 baisa on each ordinary share which was readily approved by the shareholders. The date of payment was 10th March 2019. During the year the company earned a profit after tax of OMR 200,000. The company paid the amount of dividends for the ordinary shareholders for the year 2019. What will be the Net Retained earnings after the payment of dividend to shareholders assuming that the company had opening Retained earnings on 1st January 2018 of OMR 800,000? a. OMR 1,000,000 b. OMR 600,000 c. OMR 800,000 d. OMR 300,000 The amount of ordinary dividend to be distributed to the shareholder is a. OMR 200,000 b. OMR 1,000,000 c. OMR 700,000 d. OMR 400,000
- The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.5. Which of the following is the correct entry to be made on March 31, 2021. * O Debit Dividends Payable P250,000 and Credit Cash P250,000 O Debit Dividends Payable P500,000 and Credit Retained Earnings P500,000 Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 No entry should be made because the books have already been updated on December 31, 2020Blossom Corporation was organized on January 1, 2019. During its first year, the company issued 2,300 shares of HK$50 par value preference shares and 130,000 shares of HK$10 par value ordinary shares. At December 31, the company declared the following cash dividends: 2019, HK$5,300; 2020, HK$13,100; and 2021, HK$30,000 (HK$ in thousands). Show the allocation of dividends to each class of shares, assuming the preference share dividend is 6% and non-cumulative. Allocation to preferred shares Remainder to ordinary shares HK$ List of Accounts HK$ eTextbook and Media 2019 5,300 HK$ HK$ 2020 HK$ HK$ 2021Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Sintok Niaga Bhd had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.
- 4. During 2020, Maldives Corporation started their company on January 1st and reported the following selected transactions: Jan 1 Issued 20,000 common shares at $15.00 per share. Apr 15 Issued 2,000 common shares at $12.80 per share. May 30 Repurchased 1,000 common shares for a price of $13 Nov 30 Declared a 10% common stock dividend for the shareholders on record on Dec 15 and to be distributed on Dec 20. The market price of the common shares on this date was $12 per share. (a) Prepare all journal entries required for the above transactions for Maldives Corporation. No explanations are required. (b) What are the number of common shares outstanding at Dec 31, 2020?All of the following occurred in 2019. A Plc has 3,500,000 shares in issue on 1st January. On 1st April, a further 300,000 shares were issued in the market. Later in the year, on 1st November, the company bought back 100,000 shares. On the 10th December, a 3 for 1 stock split came into effect. The net income for the year was €17,000,000 and the company paid €1,600,000 in preferred dividends. In the notes disclosures relating to granting of options and warrants: 1,050,000 Stock options, exercise price €30 900,000 Warrants, exercise paid €33 (the option and warrant exercise prices have been adjusted to reflect the stock split). Over the year, the company’s average share price was 40€. Calculate the basic and diluted EPS and show all your workings. If the company hadn’t issued stock options and warrants but had given equity upside through the preferred shares being convertible into 100,000 ordinary shares. What would the diluted EPS be now?Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Maxwell had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.