Bay Meadows Corporation designs and produces a line of golf equipment and golf apparel. Bay Meadows has 100,000 shares of common stock outstanding as of the beginning of 2024. Bay Meadows has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 Issues 59,000 additional shares of $1 par value common stock for $56 per share. Purchases 5,400 shares of treasury stock for $59 per share. Declares a cash dividend of $1.70 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,700 shares of treasury stock purchased on May 10 for $64 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: The stockholders' equity represents the issued capital and retained earnings of the business.…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: The stockholders equity section gives the details of the share of the owners or investors.
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A:
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Common stock appears to be a security that represents ownership in a company. Common investors elect…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: The stockholders' equity represents the issued capital and retained earnings of the business.…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Total outstanding shares on June 1 = Beginning balance + Shares issued - Treasury stock = 100,000 +…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Common stock appears to be a security that represents ownership in a company. Common investors elect…
Q: Diamond Corporation was organized on January 3, 2021. The firm was authorized to issue 100,000…
A: Paid-in capital is the total amount of cash that a company has received in exchange of shares. It…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Total dividend declared = Dividend per share x No. of common stock outstanding = $1.95 per share x…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Paid in capital excess of par = 61000 shares ×($58 -$1) =61000 ×57 =$3477000
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Journal entries are a primary record of every business transactions.Treasury stock is also known as…
Q: On August 15, 2021, EasyMoney, Inc.s Board of Directors meets and declares that EasyMoney will pay a…
A: Retained earnings refers to the account that accumulates the earnings of the company that are not…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: The stockholders' equity represents the issued capital and retained earnings of the business. The…
Q: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of…
A: The stockholders' equity has normal credit balance. The dividend is declared to the shareholders…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: No. of shares outstanding on June 1 = Beginning no. of shares outstanding + Additional shares issued…
Q: Presented below is information related to Alligator Corporation for 2019. 1. On March 1, Alligator…
A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three questions are…
Q: following transactions affect stockholders' equity during 2021, National League's first year of…
A: Preferred stock at par value = Preferred dividend/5% = $ 400000/5% = $ 8,000,000 Calculation of…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: 1. Common Stock - Common Stock is the shares issued by the company to raise capital for the purpose…
Q: Roberto Designers was organized on January 1, 2024. The firm was authorized to issue 160,000 shares…
A: Lets understand the basicsStockholders' equity refers to the amount which belongs to the owners of…
Q: On January 1, 2020, Triad Corporation had 60,000 shares of $1 par value common stock issued and…
A: Meaning of Journal Entry Journal entries are the building blocks of an…
Q: Maple Forest Corporation designs and produces a line of golf equipment and golf apparel. Maple…
A: Treasury stocks are the shares of a corporation that are held by the government and are not…
Q: A company designs and produces a line of golf equipment and golf apparel. The company has 100,000…
A: The stockholders' equity represents the issued capital and retained earnings of the business.…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Dividend is paid on Outstanding number of shares and Outstanding number of shares does not include…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Cash paid =5600 shares ×$61 =$341600
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Solution: Power drive Corporation Statement of Stockholder's Equity For the year ended…
Q: During the first year Zidux corp issued 80,000 shares of $4 par value common stock at a price of $50…
A: Paid in capital common stock has the element of preferred and common stock and can be known as…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Common stock appears to be a security that represents ownership in a company. Common investors elect…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Stockholder's Equity includes the amount contributed by shareholders in the form of common stock,…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Calculation of dividend on stock Particulars Shares Common Stock balance on Jan 1 1000000…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A:
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: As given, dividends are not paid on treasury stock and will be paid on outstanding shares.…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Treasury stock are shares which are bought back from the current shareholders from the open market.…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also known as Changes in…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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. 3,370,000Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.
- Taking Flight Corporation designs and produces a line of golf equipment and golf apparel. Taking Flight has 100,000 shares of common stock outstanding as of the beginning of 2024. Taking Flight has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 July 1 Issues 58,000 additional shares of $1 par value common stock for $55 per share. Purchases 5,300 shares of treasury stock for $58 per share. Declares a cash dividend of $1.65 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. October 21 Resells 2,650 shares of treasury stock purchased on May 10 for $63 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheetPower Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024 March 1 May 10 June 1 Issues 57,000 additional shares of $1 par value common stock for $54 per share. Purchases 5,200 shares of treasury stock for $57 per share. Declares a cash dividend of $1.60 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,600 shares of treasury stock purchased on May 10 for $62 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,700,000, and Retained Earnings, $2,200,000. Net income for the year ended December 31, 2024, is $620,000. Required: Prepare the…Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2024. Power Drive has the following transactions affecting stockholders' equity in 2024. March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share. Purchases 4,800 shares of treasury stock for $53 per share. Declares a cash dividend of $1.40 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.). May 10 June 1 July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,400 shares of treasury stock purchased on May 10 for $58 per share. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000; Additional Paid-in Capital, $4,300,000; and Retained Earnings, $1,800,000. Net income for the year ended December 31, 2024, is $580,000. Required: Prepare the…