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…

Answered: E 2-12 Journal entries (investment in…

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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Assume the following data relative to ABC Corporation for 2016 is available: Net Income $1,400,000 Transactions in common shares: Jan 1, 2016 Beginning number: 500,000 March 1, 2016 Purchased treasury shares 60,000 June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60,000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price(market price and option price adjusted for stock split) 4. What is Diluted EPS per share?
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:
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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
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.
15 Masters Inc. Partial Balance Sheet December 31, 2020 Shareholders' Equity Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued $100,000 Common shares, unlimited number of shares authorized, 100,000 shares issued 350,000 Total contributed capital 450,000 Retained earnings 170,000 Total shareholders' equity $620,000 Assume that the preferred shares are not cumulative and that no dividends have been declared in 2017, 2018, and 2019. Prepare the journal entry…
View Policies Current Attempt in Progress The shareholders' equity accounts of Sandhill Inc. at December 31, 2023, are as follows: Preferred shares, $3 noncumulative, unlimited number authorized, 5,000 issued Common shares, unlimited number authorized, 140,000 issued Retained earnings Accumulated other comprehensive loss Sandhill has a 35% income tax rate. During the following fiscal year ended December 31, 2024, the company had the following transactions and events: Feb. July Dec. 1 Repurchased 10,000 common shares for $40,000. Announced a 2-for-1 preferred stock split. The market price of the preferred shares at the date of announcement was $150. 12 1 $500,000 700,000 550,000 (48,000) Dec. 18 Dec. 31 Declared the annual cash dividend ($1.50 post-split) to the preferred shareholders of record on January 10, 2025, payable on January 31, 2025, Declared a 10% stock dividend to common shareholders of record at December 20, distributable on January 12. 2025. The fair value of the common…
Mady Entertainment Inc. showed the following equity account balances on the December 31, 2022, balance sheet Common shares, unlimited authorized shares, 640, 000 shares issued and outstanding Retained earnings $5, 760, 000 2, 130, 000 During 2023, the following selected transactions occurred: Apr. 1 Repurchased and retired 168,000 common shares at $10.00 per share; this is the first retirement recorded by Mady. June 1 Declared a 2:1 share split to shareholders of record on June 12, distributable June 30. Dec. 1 Declared a 10% share dividend to shareholders of record on December 10, distributable December 20. The market prices of the shares on December 1, December 10, and December 20 were $ 7.00, $6.76, and $6.90, respectively. 20 Distributed the share dividend declared December 1. 31 Closed the credit balancs of $756, 000 in the Income Sumary account. Required: a. Journalize the transactions above (assuming the retirements were the first ever recorded by Mady Entertainment Inc). The…

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