M8-19. Analyzing and Identifying Financial Statement Effects of Stock IssuancesDuring the current year, Austin Company, (a) issues 8,000 shares of $50 par value preferred stock at$84 cash per · share and (b) issues 19,000 shares of $1 par value common stock at $10 cash per share. In-dicate the financial statement effects of these two issuances using the financial statement effects template.

The entity raises equity by issuing common shares. The equity shareholders have voting rights and…

Answered: Analyzing and Identifying Financial…

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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Ecker Company reports $1,400,000 of net income and declares $196,000 of cash dividends on its preferred stock for the year. At year- end, the company had 350,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders? Net income To preferred stockholders Net income available to common stockholders 2. What is the company's basic earnings per share (EPS)? Basic Earnings per Share Choose Numerator: Choose Denominator: Basic Earnings per Share Basic earnings per share
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
Can you fix the dividends per share for both classes of stock.
Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $73,500 $123,750 Preferred stock dividends 6,300 6,750 Average common stockholders’ equity 2,700,000 3,150,000 Dividend per common share 2.70 2.52 Earnings per share 3.99 4.61 Market price per common share, year-end 41.00 47.30 Calculate the return on common stockholders’ equity for Los Altos, Inc. for both years.Round to two decimals. Year 1 Year 2 Return on Common Stockholders' Equity Answer Answer Did the return improve from Year 1 to Year 2? Answer
Identifying and Analyzing Financial Statement Effects of Stock TransactionsMelo Company reports the following transactions relating to its stock accounts in the current year. Use the financial statement effects template to indicate the effects from each of these transactions.(a) Mar. 2 Issued 7,000 shares of $1 par value common stock at $30 cash per share.(b) Apr. 14 Issued 10,500 shares of $100 par value, 8% preferred stock at $250 cash per share.(c) June. 30 Purchased 2,100 shares of its own common stock at $22 cash per share.(d) Sep. 25 Sold 1,050 shares of its treasury stock at $26 cash per share.Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.Note: Indicate a decrease in an account category by including a negative sign with the amount.
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
Looking for the Less: Cash dividends declared to find the Retained earnings.. Attached the journal entries as well.
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $706,500 Paid-In Capital from Sale of Treasury Stock 29,000 Paid-In Capital in Excess of Par-Common Stock 18,840 Retained Earnings 1,109,000 Treasury Stock 14,630 Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 770 shares have been reacquired. Goodale Properties Inc. Stockholders' Equity June 30, 20хх Paid-In Capital: Total Paid-In Capital $4 Total Total Stockholders' Equity
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $30 par value (no change during the year) $5,400,000 Preferred $5 stock, $100 par (no change during the year) 2,000,000 The net income was $604,000 and the declared dividends on the common stock were $45,000 for the current year. The market price of the common stock is $22.40 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share $fill in the blank 1 b. Price-Earnings Ratio fill in the blank 2 c. Dividends per Share $fill in the blank 3 d. Dividend Yield fill in the blank 4 %

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