Common stock Preferred stock e. Paid the cash dividends declared in (d). Description Debit Credit f. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. Description Debit Credit g. Purchased 8,000 shares of treasury common stock at $33 per share. Description Debit Credit

Common stock Preferred stock e. Paid the cash dividends declared in (d). Description Debit Credit f. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. Description Debit Credit g. Purchased 8,000 shares of treasury common stock at $33 per share. Description Debit Credit

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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Effect of Financing on Earnings Per Share BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $850,000 Preferred 2% stock, $20 par 850,000 Common stock, $25 par 850,000 Income tax is estimated at 60% of income. Round your answers to the nearest cent. a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $331,500. per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $416,500. per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $501,500. per share Feedback Check My Work Recall that earnings per share is calculated by dividing Net Income minus Preferred Dividends by Number of Common Shares Outstanding.
XYZ Company issued at par 300 shares of $2 par common stock in exchange for land with a market value of $20,000. DATE Debit Credit X/X
Journalizing issuance of stock for assets other than cash Cedar Corporation issued 36,000 shares of $1 par value common stock in exchange for a building with a market value of $160,000. Record the stock issuance.
"Page 1 6 Record the necessary journal entry for the issuance of common stock. General Journal DR CR 7 Record the repurchase of common stock. General Journal DR CR 8 Record $50,000 in cash dividends declared. General Journal DR CR 9 Record the $50,000 cash dividends that have now been paid. General Journal DR CR 10 Assume and record a property dividend of inventory valued at $75,000 declared and paid. General Journal DR CR 11 Assume a common stock dividend declared of 19% of shares outstanding. Market at $12 per share. General Journal DR CR 12 Assume a common stock dividend declared of 35% of shares outstanding. General Journal DR CR
Equity method journal entries (price equals book value) Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor purchases 14,400 common shares of an investee at $16 per share; the shares represent 25% ownership in the investee and the investor concludes that it can exert significant influence over the investee. b. The investee reports net income of $172,800. c. The investor receives a cash dividend of $1.50 per common share from the investee. d. The investor sells all 14,400 common shares of the investee for $260,280. General Journal Ref. Description Debit Credit a. b. C. d. Equity investment
Assessing Financial Statement Effects of Marketable Equity Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased 14,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 14,000 common shares of Heller for $220,920 cash. 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. tion N/A N/A N/A N/A Cash Asset (224,000) 17,500 + 220,920 * N/A ◆ * N/A 0 N/A * N/A Noncash Assets 224,000 = = 21,000 * N/A 0✓ = ♦ = N/A * N/A (171,500) * = * N/A Balance Sheet Liabilities 0 0✔ 0 0 4 + > N/A N/A N/A N/A Contrib. Capital 0 0✔ 0…
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eBook Oct. 31. Declared semiannual dividends of $1.60 per share on the preferred stock and $0.13 per share on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Oct. 31 Cash Dividends Cash Dividends Payable Oct. 31 Stock Dividends Stock Dividends Distributable 0 0 30,780 X 0 0 15,600 X Paid-In Capital in Excess of Par-Common Stock 0 Feedback Check My Work On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity? Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 31 Cash Dividends Payable Cash Dec. 31 Stock Dividends Distributable Common Stock Feedback Check My Work What are the stockholders receiving? Feedback 75,600 X 0 0 ✓ 30,780 X 0 0 ✓
e. Paid the cash dividends declared in (d). Description Debit Credit Cash Dividends Payable v 70,000 Cash v 300,150 X f. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. Description Debit Credit Available-for-Sale Investments-Solstice Corp. Bonds 264,000 x Cash 264,000 x