Blue Company had the following Shareholders' Equity accounts as of May 1, 2020:Share capital:Preferred shares, 50,000 issued and outstandingClass A common shares, 250,000 issued and outstandingClass B common shares, 460,000 issued and outstandingRetained earningsTotal shareholders' equity$617,5001,362,5002,438,0003,290,000$7,708,000On June 10, Blue reacquired and cancelled 2,000 Class A common shares at a cost of $4.65 per share. On August 26, 2020, Blue issued4,000 Class A common shares for $8.60 each. On September 30, the company reacquired and cancelled another 2,000 Class Acommon shares at $8.60 per share.Prepare the journal entries required to record these transactions. (Round per share value to 4 decimal places, e.g. 1.2512 and final answerto O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entryis required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) DateSept. 30Account Titles and ExplanationDebitCredit

Formula : Par value of common shares = Amount outstanding / Number of shares

Answered: Blue Company had the following…

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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The following Information pertains to JAE Corporation at January 1, Year 1. Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings JAE Corporation completed the following transactions during Year 1: 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for $26 per share. Required Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Complete this question by entering your answers in the tabs below. Req D $20,000 15,000 82,000 Prepare the stockholders' equity section of the balance sheet reflecting these transactions. (Amounts be indicated with minus sign.) Stockholders' equity Common stock Total paid-in capital Retained earnings Total stockholders' equity
Pagle Corporation holds 80 percent of Standard Company's common shares. The companies report the following balance sheet data for December 31, 20X1: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Standard Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Taxes Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Total Liabilities and Owners' Equity Pagle Corporation $ 53,000 85,000 126,000 700,000 (295,000) 160,000 $ 829,000 Basic earnings per share Diluted earnings per share $ 120,000 79,000 200,000 100,000 330,000 $ 829,000 Required: Compute basic and diluted EPS for the consolidated entity for 20X1. Note: Round your answers to 2 decimal places. Standard Company $ 43,000 65,000 76,000 330,000 (130,000) $ 384,000 $ 84,000 100,000 An 8 percent annual dividend is paid on the Pagle preferred stock and a 12 percent dividend is paid on the Standard…
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Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poppy Corporation Basic earnings per share Diluted earnings per share $ 94,000 $ 35,000 83,000 57,000 117,000 100,000 92,000 (77,000) $ 487,000 690,000 (225,000) 135,000 $ 894,000 Seed Company $ 62,000 $ 119,000 250,000 200,000 300,000 100,000 225,000 125,000 $ 894,000 $ 487,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible. Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is…
The outstanding share capital of Flounder Corporation consists of 2,000 shares of $100 par value, 9% preference, and 5,200 shares of $50 par value ordinary. Assuming that the company has retained earnings of $82,500, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions. (a) The preference shares are non-cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ $ Preference (b) The preference shares are cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ Preference $ Preference $ Ordinary (c) The preference shares are cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Ordinary Ordinary
Required information [The following information applies to the questions displayed below.] Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Balance Sheet Items Assets Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Current Liabilities Capital Stock Capital in Excess of Par Value Retained Earnings Total Liabilities & Equities Pumpworks Book Value $ 94,000 112,000 112,000 419,000 (147,000) $ 590,000 $ 69,000 333,000 25,000 163,000 $ 590,000 Fair Value $ 94,000 155,000 154,000 pict 303,000 ure $706,000 $ 69,000 Seaworthy Rope Company Book Value $ 17,000 27,000 7,000 208,000 (62,000) $197,000 $ 22,000 76,500 10,000 88,500 $197,000 Fair Value $ 17,000 39,000 12,000 pict 133,000 ure $201,000 $ 22,000
Jackie Inc. made the following capital transactions on a domestic share not listed in the exchangeJanuary 15 - purchased 25,000 shares at P16 eachJanuary 31 - purchased 10,000 shares at P20 eachMarch 1 - sold 20,000 of January 15 shares at P15 eachApril 25 - sold 8,000 of January 31 shares at P25 each On the return to be filed for the April 25 sale, what amount should be reflected in Item 11?
Un Deux Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and 300,000 shares of P30 par value ordinary shares. During the year, the company declared and paid a total cash dividend of P900,000. The corporation did not declare and pay any dividends last year. Required: For each of the following independent cases, compute the total dividends to be received by each class of share. 1. The preference share is non-cumulative and non-participating 2. The preference share is cumulative and non-participating 3. The preference share is non-cumulative and participating 4. The preference share is cumulative and participating
On September 1, Reedy Company has 500,000 shares of $30 par value ($330 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following account balances relating to its common stock: Common stock 15,000,000 Paid-in capital in excess of par value 9,000,000 On September 2, Reedy splits its stock 3-for-2 and reduces the par value to $20 per share. How many shares of common stock are issued and outstanding immediately after the stock split? a. 500,000 shares b. 333,333 shares C. 750,000 shares d. 15,000,000 shares
Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poison Corporation $ 19,000 38,000 120,000 280,000 (131,000) 124,600 $ 450,600 Consolidated earnings per share $ 83,600 42,000 100,000 120,000 105,000 $ 450,600 Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. Snake Company $ 27,000 48,000 72,000 210,000 (64,000) $ 293,000 $ 62,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake…
Al Anwar Company has 10,000 shares authorized, OMR2 par value, 4,000 shares issued and outstanding ordinary shares and 5% cumulative, non-participating. 7,000 shares authorized, OMR100 par value, 1000 shares issued and outstanding preference shares. Assume that AL Anwar did not declare dividends for the previous 2 years. The company declared a total of OMR10,000 cash dividend in the current year. How much dividend would be paid to ordinary shareholders?
The following cases are independent. Case A Jethrow Ltd. had 1,700,000 common shares outstanding on 1 January 20x2. • On 27 February 207,000 shares were issued for $57 each.. • 307,000 shares were issued on 1 August. A 2-for-1 stock split was distributed on 30 August. Case B On 1 January 20X7, Doomsday Corp. had 207,000 nonvoting Series A shares and 607,000 Series 8 voting shares outstanding. Series A shares have a $3 per share cumulative dividend paid quarterly and are convertible into two Series B shares at any time after 31 December 20x9. On 1 October 20x7, 30,700 Series A shares were converted to B shares. ⚫ On 1 December 20x7, 79,000 Series 8 shares were retired for cash. Required: For each case, calculate the number of weighted-average ordinary shares to use in the calculation of basic EPS. Assume a 31 December year-end. (Do not round Intermediate calculations. Round your answers to the nearest whole number.) Number of shares Case A Case B 2,738,417 615,767

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