AIM Inc. showed the following equity account balances on the December 31, 2019, balance sheet:Common shares, unlimited authorized shares, 1,090,200 sharesissued and outstandingRetained earnings$7,740,4202,332,300During 2020, the following selected transactions occurred:Feb.10 Repurchased and retired 170,900 common shares at $10.00 per share; this is the first retirement recorded by AIM.May 15 Declared a 2:1 share split to shareholders of record on June 1, distributable June 15.Dec. 1 Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of theshares on December 1, December 10, and December 20 were $5.00 $7.40, and $6.40, respectively.20 Distributed the share dividend declared December 1.31 Closed the credit balance of $960,986 in the Income Summary account.Required:a. Journalize the transactions above (assuming the retirements were the first ever recorded by AIM Inc.). The company does not use ashare dividends account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Answer is complete but not entirely correct.NoDateGeneral Journal1February 10, 2020 Common sharesRetained earningsCashDebitCredit✔71,8132,142,0211,709,0002May 15, 2020No journal entry required3December 01, 202 Retained earnings919,300Common share dividends distributable919,3004December 20, 202 Common share dividends distributableCommon shares5December 31, 202 Income summaryRetained earnings919,300919,300960,986960,986DateFebruary 10, 2020Answer is complete but not entirely correct.Note DisclosureAmountNote disclosure not requiredMay 15, 2020December 01, 2020December 20, 2020December 31, 2020Note disclosure requiredNote disclosure not requiredNote disclosure not requiredNote disclosure not required124,312xb. Prepare the equity section on the December 31, 2020, balance sheet.Answer is complete but not entirely correct.AIM INC.Equity Section of Balance SheetDecember 31, 2020Contributed capital:Common shares, unlimited shares authorized, 2,022,460 shares issued and outstanding$6,950,720xRetained earnings2,373,986 x$9,324,706Total equity

Retained Earnings- Any company's net profit left over after dividend payments to shareholders is…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Transactions during 2019 and other information relating to the shareholders' cquity accounts were as follows:1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31, 2018,Dakota had 100,000 authorized shares of $100 par, 10%, cumulative preferred stock; and 3,000,000 autho-rized shares of no-par common stock with a stated value of $5 per share.2. On January 9, 2019, Dakota formally retired all 30,000 shares of its treasury common stock and had them revert to an unissued basis. The treasury stock had been acquired on January 20, 2018. The shares were originally issued at $10 per share,3. Dakota owned 10,000 shares of Bush Inc, common stock purchased in 2016 for $750,000. The Bush stock was included in Dakota's short-term marketable securities portfolio at the end of 2018 at a value of $650,000.On February 13, 2019, Dakota declared a dividend in kind…
The Murphy Corporation is authorized to issue 500,000 shares of $1 par value common stock, During 2019, the company has the following stock transactions. Jan. 15 Issued 200,000 shares of stock at $6 per share. Sept. 5 Purchased 30,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2020. Instructions Journalize the transactions for the Murphy Corporation on journal paper. OMIT explanations
Sunland Rental Corporation had the following balances in its shareholders' equity accounts at January 1, 2021: Accumulated other comprehensive income (loss) Contributed surplus-reacquisition of common shares Retained earnings Common shares (25,000 shares) Feb. 2 Sunland had the following transactions and events during 2021: Apr. 17 Oct. 29 $ (26,000) Dec. 31 559,000 1,600,000 625.000 Repurchased 1.200 shares for $57,600. Declared and paid cash dividends of $71,000. Issued 1,900 shares for $106,000 cash. Reported comprehensive income of $415,000, which included other comprehensive income of $31.000.
The Gangnam Company began operations in January 2019 and reported the following results for each of its three years of operations. 2019 – P520,000 loss; 2020 – P80,000 loss; 2021 – P1,600,000 profit At December 31, 2020, Gangnam Company’s capital accounts were as follows: 8% Cumulative Preference Share Capital, P100 par, 50,000 shares authorized, issued and outstanding- P5,000,000; Ordinary Share Capital, P10 par, 1,000,000 shares authorized, 750,000 shares issued and outstanding- P7,500,000 Gangnam Company has never paid a cash or bonus issue and there has been no change in its capital accounts since it began operations in 2019. The corporation law permits dividends only from retained earnings.What is the book value of the ordinary share at December 31, 2020 assuming that the preference share has a liquidating value of P106 per share?
Rawhides Corporation showed the following account balances on December 31, 2022 balance sheet: Common shares, unlimited authorized shares, 660,000 shares issued and outstanding $3,980,000 Retained earnings $2,130,000 Per their incorporation documents, they are authorized to issue 100,000, $5 preferred shares. During 2023, the following selected transactions occurred: March 1 May 1 June 1 July 1 July 31 November 1 November 20 December 31 Repurchased and retired 100,500 common shares at $7.20 per share; this is the first retirement recorded by Rawhides Declared 2:1 shares split to shareholders of record on May 12, distributable May 30 The board of directors issued 15,000 preferred shares for $27 per share The board declared total cash dividends of $82,000 to shareholders of record on July 22 payable on July 31 Paid the cash dividend Declared a 10% share dividend to shareholders of record on November 10, distributable November 20. The market prices of the shares on November 1, November 10…
ABC Company was incorporated on January 1,2021. The following are the ordinary share transactions during the year: Jan. 1 number of shares authorized 85,000 Feb. 2 number of shares issued. 65,000 June 1 number of shares reacquired but not retired 5,000 Dec 1 2 for 1 share split What is the number of ABC Corp.’s ordinary share outstanding at December 31, 2020? To input answers, kindly follow the sample format below(no peso sign, with comma, no space): 100,000
The balance sheet of Chunn Industries included the following shareholders’ equity section at December 31, 2018 ($ in millions): Common stock ($1 par value, authorized 100M shares, issued and outstanding 90M shares) $ 90 Paid-in capital—excess of par 540 Retained earnings 280 Total shareholders’ equity $910 On January 5, 2019, Chunn purchased and retired 1 million shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital—excess of par and retained earnings accounts are:
Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Overland Corporation took part in the following selected transactions. Prepare journal entry(entries) for following independent event. a. Purchased 6,000 shares of treasury stock at $70 per share. The treksury shares purchased were issued in 2018 at $46 per share. Assuming Overland uses the retirement method to prepare entry and before this transaction the company had $100,000 credit balance of Paid-in capital- shares repurchase and $800,000 retained earnings b. The board votes a 4-for-1 stock split. At the date, the market value is $80 c. The board votes a 150% stock dividend. At the date, the market value is $80, assuming the company treats the distribution as "large" stock dividends effected in the form of a stock dividend and before this transaction the company has 54,000 shares of common stock
Gary Company reported the following amounts in the equity section of its Dec. 31, 2020, statement of financial position. Share capital - Preference. 8%, P100 par (10,000 shares authorized, 2,000 shares issued) P200,000 Share capital-ordinary, P5 par (100,000 shares authorized, 20,000 shares issued) 100,000 Share premium 125,000 Retained earnings 450,000 Total 875,000 During 2021, Gary took part in the following transactions concerning equity. Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on Dec. 31, 2020. Purchase 2,700 shares of its own outstanding ordinary shares for P40 per share. Gary uses the cost method. Reissued 700 treasury…
Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts: 2020 Jan. 10 Paid $11,000 of annual dividends to preferred shareholders. 2021 Jan. 10 Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders. Mar. 1 The preferred shares were converted into common shares. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020Jan . 10 (To record preferred…
During its first year of operations, Cupola Fan Corporation issued 48,000 of $1 par Class B shares for $475,000 on June 30, 2021. Share issue costs were $3,300. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $48,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2.70 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) please dont give answer in the image format

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