CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the retained earnings amounted to P3,000,000. In March 2022, the entity reacquired 50,000 treasury shares at P20 per share. In June 2022, the entity sol 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the current year was P600,000. 1. What is the total amount of retained earnings at year - end? [Select ] 2. What amount should be reported as unappropriated retained earnings at year end? [ Select ] >

CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the retained earnings amounted to P3,000,000. In March 2022, the entity reacquired 50,000 treasury shares at P20 per share. In June 2022, the entity sol 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the current year was P600,000. 1. What is the total amount of retained earnings at year - end? [Select ] 2. What amount should be reported as unappropriated retained earnings at year end? [ Select ] >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

See similar textbooks

Related questions

Q: a) Journalize the transactions for the month of April. (Assume that the company follows perpetual…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Mainland Resources Inc. began operations on June 5, 2023. 2023 June 5 Gave 4,000 common shares to…

A: The objective of the question is to record the equity transactions of Mainland Resources Inc. in the…

Q: Ebberle Company reported the following in the shareholders' equity section of its statement of…

A: Earnings per share = (Net income - Preferred dividend) / no. Of ordinary shares outstanding No. Of…

Q: a. Prepare journal entries b. Assuming that the profit for the year amounted to P450,000, prepare…

A: The statement of equity records the variation in the balance of equity of the company.

Q: The following transactions occurred for Villegas Company. 1. Villegas Company was formed on July 1,…

A: Solution:-Prepare the stockholders' equity section of Villegas Company's balance sheet as of June…

Q: Cash Contributed Surplus Cash Common Shares Common Shares Contributed Surplus Retained Earnings Cash…

A: Journal entries for shares : Common shares are issued to business owners and other investors as…

Q: record all the above journal transactions

A: Issue of shares is one of important source of finance being used in business. There can be common…

Q: Blossom Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital:…

A: Journal EntriesJournal entries are used to record the transactions in the books of accountants.…

Q: During its first year of operations, Cupola Fan Corporation issued 34,000 of $1 par Class B shares…

A: According to the given question, we are required to prepare the journal entries. Journal entries:…

Q: Cullumber Rental Corporation had the following balances in its shareholders' equity accounts at…

A: Journal entries refer to recording and classyfing business transactions into books of accounts…

Q: On June 1, 2024, Blue Company distributed to its common stockholders 140,000 outstanding common…

A: Calculate the gain per share:Market price per share - Book value per share = Gain per share$2.90 -…

Q: During its first year of operations, Cupola Fan Corporation issued 40,000 of $1 par Class B shares…

A: Journal entries No. Date account titles and explanation Debit…

Q: An entity was incorporated on January 1, 2020 with proceeds from the issuance of P5,000,000 in…

A: Accounting Equation: The accounting equation provides the foundation of the accounting system. It is…

Q: Alexa Company is preparing its December 31, 2022 statement of financial position. The following…

Q: Denver Co. owns 29,000 shares of common stock of Aspen Co. as an investment. The balance of this…

A: To account for Denver Co.'s investment in Aspen Co. stock during 2023, we need to consider the…

Q: ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a…

A: Share premium on ordinary shares issued = No. of shares issued x (Issue price per share - par value…

Q: Sunland Company was organized on January 2, 2021, with 508000 authorized shares of $10 par value…

A: Treasury stock is reacquired shares by the company. The required share can be the issued in future.…

Q: Titanic Corporation's net income for the year ended December 31, 2019, is $380,000. On June 30,…

A: Ending balance of retained earnings can be computed by adding the net income and deducting the…

Q: Marigold Inc. has outstanding 10,600 shares of $10 par value common stock. On July 1, 2020, Marigold…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Splish Corporation is authorized to issue 47,000 shares of $5 par value common stock. During 2025,…

A: Journal Entries are the records of the transactions entered into by the organization during the…

Question

CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the retained
earnings amounted to P3,000,000.
In March 2022, the entity reacquired 50,000 treasury shares at P20 per share. In June 2022, the entity sold
10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record
treasury shares.
Net income for the current year was P600,000.
1. What is the total amount of retained earnings at year - end? [ Select ]
2. What amount should be reported as unappropriated retained earnings at year - end?
[ Select ]

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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. 3,370,000
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
Best Windows Ltd started operations on January 1, 2022. On this day, Best Windows issued common shares for 50,000. On April 30, Best Windows repurchased 10,000 of its common shares. On December 20, the company issued common shares for 70,000. Calculate the balance of common shares at the end of 2022.
Sarasota Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 58,000 common shares for $2.50 per share. Jan. 20 Issued 3,000 common shares to settle legal expenses. The value of the legal expenses was $9,940. Feb. 10 Issued 15,000 preferred shares for $35.00 per share. Aug. 12 Repurchased 17,400 common shares for $2.40 per share. Oct. 1 Issued 4,100 common shares for $2.25 per share. Dec. 15 Repurchased 21,000 common shares for $2.72 per share. Record the above 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.) Date Jan, 5 Jan 20 # Account…
Ayayai Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 49,000 common shares for $2.50 per share. Jan. 20 Issued 2.700 common shares to settle legal expenses. The value of the legal expenses was $8,818. Feb. 10 Issued 11,000 preferred shares for $50.00 per share. Aug 12 Repurchased 14,700 common shares for $2.40 per share. Oct. 1 Issued 5,300 common shares for $2.25 per share. Dec. 15 Repurchased 22,000 common shares for $2.70 per share. Record the above 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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, eg. 5.75 and final answers to 0 decimal places, eg 5,275)
Marigold Inc. has outstanding 10,600 shares of $10 par value common stock. On July 1, 2020, Marigold reacquired 105 shares at $87 per share. On September 1, Marigold reissued 62 shares at $91 per share. On November 1, Marigold reissued 43 shares at $84 per share. Prepare Marigold's journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. 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 11/1/20
Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
The following data was available for Smithson Corporation on December 31, 2022: Common shares (30,000 authorized; 10,000 issued). $280,000 (CR) Contributed surplus-reacquisition of shares, $10,000 (CR) The only change in 2023 was that Smithson paid $20,000 to reacquire 800 of its own shares. For the reacquisition, what amount would be recorded for Contributed Surplus-Reacquisition of Shares? O CR $20,000 O DR $2,400 O CR $2,400 O DR $20,000 Save for Later Submit Answer
On January 1, 2020, Addy Company had 110,000 shares issued and 100,000 shares outstanding. The entity had the following transactions in 2020: March 1 - Issued 15,000 shares. June 1 - Resold 2,500 shares of treasury. September 1 Completed a 2-for-1 share split. What is the number of shares outstanding on December 31, 2020?
Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par Ordinary share capital at P 15 per share. For the period 2017 to 2019, the corporation reported profit of P900,000 and paid cash dividends of P 460,000. On Jan. 1, 2019, the corporation purchased 12,000 of its own share capital at P 12 per share. On Sept. 20, 2019, the company sold 8,000 Treasury shares at P 18 per share. On Oct. 2, 2019, the corporation received 2,000 shares as donation from a major shareholder and were subsequently sold at P 15 per share on Nov. 15, 2019. Compute Total Shareholders’ Equity on December 31, 2019
For the year ended December 31, 2021, Norstar Industries reported net income of $975,000. At January 1, 2021, the company had 1,110,000 common shares outstanding. The following changes in the number of shares occurred during 2021: Apr. 30 Sold 95,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 108,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.) Numerator / Denominator $ 975,000/ Earnings per Share =