E 2-12 Journal entries (investment in previously unissued stock)The stockholders' equity of Sun Corporation at December 31, 2016, was $380,000, consisting of the following (in thousands):Capital stock, $10 par (24,000 shares outstanding)Additional paid-in capitalRetained earningsTotal stockholders' equity$240RequiredPrepare all journal entries necessary for Pam Corporation to account for its investment in Sun for 2017.6080$380On January 1, 2017, Sun Corporation, which was in a tight working capital position, sold 12,000 shares of previously unissued stock to Pam Corporation for $250,000. All of Sun's identifiable assetsand liabilities were recorded at fair values on this date except for a building with a 10-year remaining useful life that was undervalued by $60,000. During 2017, Sun Corporation reported net incomeof $120,000 and paid dividends of $90,000.

Investment typically refers to the allocation of money, time, or resources into an asset or endeavor…

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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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Required: 1. How many common shares are outstanding on each cash dividend date? January 5 April 5 July 5 October 5 Outstanding common shares
Problem#4 The stockholders equity section of Carey Co.'s balance sheet at December 31, 2014, was as follows: Common stock--$10 par (authorized 1,000,000 shares, issued and outstanding 600,000 shares) $6,000,000 Paid-in capital in excess of par $1,500,000 Retained earnings $3,250,000 Total $10,750,000 Instructions: Prepare journal entries (1, 2 and 4) and show proper disclosure (3) (stockholders equity section of b/s) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (show computations) 1. On January 4, 2015 having idle cash, Carey Co repurchased 25,000 shares of its out-standing stock for $500,000 2. On March 4, Carey sold 5,000 of these reqcquired shares at $24 per share. 3. Show the proper disclosures in the stockholders…
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Exercise 11-13: Whitacre Company’s stockholders’ equity section of the balance sheet on December 31, 2015, was as follows: Common stock, $10 par value, 60,000 shares issued and outstanding $600,000 Additional pain-in capital 480,000 Retained earnings 1,240,000 Total stockholders’ equity $2,320,000 On May 1, 2016, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. The on November 1, it declared and issued a 2-for-1 stock split. How many shares of stock are outstanding at year-end? What is the par value per share of these shares? Develop the stockholders’ equity category of Whitacre’s balance sheet as of December 31, 2016.
Ex8: A company was organized in January 2016 and has 15,000 shares of $12 par value, 20%, nonparticipating preferred stock outstanding and 50,000 shares of $7 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. 2016 2017 $20,000 $30,000 $60,000 2018 Required: Complete the amount of total dividends allocated to each class of stock during 2016-2018. Cumulative: Year Preferred Common 2016 2017 2018. Non-Cumulative: Year Preferred Common 2016 2017 2018 To calculate the total dividends distributed to each class of stockholder under each assumption, we need to consider whether the preferred stock is cumulative or non-cumulative. Here are the calculations for both scenarios: 1. Cumulative Preferred Stock: Year 2016:
Homework Corporation Stockholders' Equity December 31, 2021 Common Stock, no par, 25,000 shares outstanding Retained Earnings Other Comprehensive Income 500,000 300,000 (30,000) Total Stockholders' Equity 770,000 The following transactions relating to stockholders' equity occurred during 2022: Enter the transactions in the general journal 1. Recorded a net income of $100,000 with a $15,000 loss allocated to other comprehensive income (no journal entry required)
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Exercise 14-03 a-b (Video) On January 1, 2020, Oriole Corporation had $1,160,000 of common stock outstanding that was issued at par. It also had retained earnings of $747,500. The company issued 37,500 shares of common stock at par on July 1 and earned net income Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is re Entry" for the account titles and enter 0 for the amounts.) b. No. Account Titles and Explanation a. Par value is $10, and market price is $18. Par value is $5, and market price is $22. b. Debit LINK TO TEXT Credit Click if you would like to Show Work for this question: Open Show Work VIDEO: SIMILAR EXERCISE
Problem 6 (Adapted)Anna company presented the following account balances in the shareholders’ equity section for the year ended December 31, 2018: Preference share capital, 12% P50 par, P3,000,000, Ordinary share capital, P100 par, P6,000,000 and deficit, (P1,350,000). No dividends have been paid on the preference share since 2016. Determine the book value per share under the following conditions:a. Preference share is preferred as to assetsb. Preference share is preferred as to dividend
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QUESTION 20 The shareholders' equity section of Jason Company as of December 31, 2017, was as follows: Common stock $180,000 Additional paid-in capital (Common stock) 110,000 Retained earnings 160,000 Total shareholders' equity $450,000 . On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15? A credit to Retained Earnings for $90,000 A debit to Cash for $90,000 A debit to Treasury Stock for $90,000 A debit to Common Stock for $90,000 None of these choices is correct.

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