Larkspur Limited had the following statement of financial position for the current year, 2023:Current assetsInvestmentsProperty, plant, and equipmentIntangible assetsOther assets1.2.3.4.5.6.LARKSPUR LIMITEDStatement of Financial PositionDecember 31, 20237.8.$109,06070,520173,840The following additional information is available and provides information regarding errors in classification which need to becorrected:26,24031,160$410,820Current liabilitiesLong-term liabilitiesShareholders' equity$79,540139,400191,880$410,820Current Assets include the following: bank account with an overdraft balance of $12,300; inventory with a FIFO cost of$71,340 and a net realizable value of $69,700; accounts receivable of $54,120 less allowance for expected credit losses of$2,460.Investments include the following: a mortgage receivable from parent company $49,200, due in 2028; FV-NI investmentsheld for trading with a cost of $8,200 and a fair value of $9,840; FV-OCI investments with a cost of $12,300 and a fair value of$11,480.Property, Plant and Equipment include the following: land $19,680; buildings $356,700 less accumulated depreciation of$237,800; vehicles $64,780 less accumulated depreciation of $40,180; land held for future use $10,660.Intangible assets include the following:patents net of accumulated amortization of $26,240.Other assets include the following: customer deposits of $5,740, unearned revenue of $2,460, goodwill $36,080 andaccumulated other comprehensive income (loss) of $ (3,280).Current Liabilities include the following: pension obligation of $44,280, interest payable of $3,280; salaries and wagespayable of $6,560; accounts payable $25,420.Long-term Liabilities include the following: demand bank loan of $61,500; mortgage payable $77,900 of which $5,740 is duein the next year.Shareholders' Equity has 820 preferred shares (24,600 authorized) which were issued at an average price of $75 per share,and an unlimited number of authorized common shares with 45,100 shares issued at an average price of $1 per share,retained earnings of $85,280.Prepare a statement of financial position in good form. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in orderof Land, Buildings, and Vehicles.)

Statement of Financial Position, also known as the Balance sheet, gives the understanding to its…

Answered: 8. Shareholders' Equity has 820…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $11 par value, 11,900 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,000 shares of common stock for cash at $22 per share.. b. Sold 2,200 shares of common stock for cash at $27 per share. c. At year-end, the company reported net income of $6,100. No dividends were declared. 2. Prepare the stockholders' equity section of the balance sheet the end of the year. Note: Amounts to be deducted should be indicated by a minus sign. Stockholders' equity Contributed capital: TARRANT CORPORATION Balance Sheet (Partial) At December 31, This year Total contributed capital Total stockholders' equity
A corporation issues 5,000 shares of $1 par value stock for some equipment with a clearly determined value of $10,000. Prepare the journal entry to reflect this transaction.
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common stock, $20 stated value (500,000 shares authorized, 363,000 shares issued) $7,260,000 Paid-In Capital in Excess of Stated Value—Common Stock 834,900 Retained Earnings 32,541,000 Treasury Stock (25,900 shares, at a cost of $19 per share) 492,100 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.09 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $30,339. Apr. 10 Issued 80,000 shares of common stock for $23 per share. Jun. 6 Sold all of the treasury stock for $25 per share. Jul. 5 Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Aug. 15 Issued the certificates for the dividend declared on…
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Assume that the stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown below. During the year, the company reported net income of $241,125,000 and declared and paid dividends of $11,909,000. Stockholders' Equity: Common stock, Class A-116,610,308 and 116,535,495 shares issued; ? and ? shares outstanding Common stock, Class B (convertible)-4,170,929 shares issued and outstanding Additional paid-in capital Retained earnings Less treasury stock, at cost, Class A- 47,176,748 and 45,340,148 shares $ Current Year 1,166,000 42,000 769,055,000 2,607,727,000 (1,891,581,000) $ Last Year 1,165,000 42,000 796,987,000 ? (941,560,000) Required: 1. What is the par value of Magnum's Class A common stock? 2. How many shares of Class A Common Stock were outstanding at the end of last year and the end of the current year? 3. What amount was reported in the Retained Earnings account at the end of last year? 4. How is the dollar amount in the treasury stock…
A corporation issued 180 shares of its $5 par value common stock in payment of a $2,600 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice A $2,600 debit to Common Stock. A $2,600 credit to Cash. A $900 debit to Organization Expenses. A $1,700 credit to Paid - in Capital in Excess of Par Value, Common Stock. A $ 2,600 credit to Common Stock.
The charter of a corporation provides for the issuance of 138,000 shares of common stock. Assume that 54,000 shares were originally issued and 13,100 were subsequently reacquired. What is the number of shares outstanding?
A) Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates.
Oriole Inc. had the following transactions pertaining to investments in common stock. Jan. 1 Purchased 4,400 shares of Escalante Corporation common stock (4%) for $267,520 cash. July 1 Received a cash dividend of $5 per share. Dec. 1 Sold 880 shares of Escalante Corporation common stock for $56,320 cash. Dec. 31 Received a cash dividend of $5 per share. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common stock, $20 stated value (500,000 shares authorized, 383,000 shares issued) $7,660,000 Paid-In Capital in Excess of Stated Value—Common Stock 957,500 Retained Earnings 35,012,000 Treasury Stock (25,700 shares, at a cost of $18 per share) 462,600 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $21,438. Apr. 10 Issued 77,000 shares of common stock for $23 per share. Jun. 6 Sold all of the treasury stock for $27 per share. Jul. 5 Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Aug. 15 Issued the certificates for the dividend declared on…
Record the appropriate journal entry to reflect the following: The investments that Veggies-R-Us. Inc. currently has in their investment account (current asset) represents investments that were purchased recently. Based upon stock market auotes obtained for December 31, 20XX, the market value of these investments = $112,000. (It is management's intent to actively manage these shares for profit.) You have been provided with the partial Trail Balance for this company below: Veggies-R-Us. Trial Balance (Partial) December 31, 20XX Cash $26,750 (Debit) Accounts Receivable $47,630 (Debit) Allowance for doubtful accounts $250 (Debit) Prepaid rent $1,680 (Debit) Supplies $8,700 (Debit) Investments $113,520 (Debit) Furniture $15,350 (Debit)
The charter of a corporation provides for the issuance of 114,000 shares of common stock. Assume that 51,000 shares were originally issued and 6,800 were subsequently reacquired. What is the number of shares outstanding?

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