Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020?
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021. ...
A: Total assets includes both Current assets and Non current assets. Current assets: Current assets are...
Q: A subsidiary is an entity that: Select one: a. Has the power to control a parent entity. b. Has sign...
A: The subsidiary company in a corporate world, belongs to another company, which are known as parent c...
Q: The following information is available for Cubic Company before closing the accounts. After all clos...
A: All revenues are closed by crediting the income summary account and expenses are closed by debiting ...
Q: The journal entry to record the amount receivable when a call is made by the company is: Select one:...
A: Calls on Share: Calls on shares signify the company's right on somewhat paid offers to pay part or f...
Q: The following information Is available from the adjusted trial balance of the Harris Vacation Rental...
A: The closing entries are prepared to close the temporary accounts of the business. The closing entrie...
Q: For each of the following errors in property, plant and equipment accounts, indicate a specific inte...
A: Answer: The internal control is the control that is set up in business so that there is no any error...
Q: Tripeaks Company used the accrual basis of accounting: December 31 January 1 9,000,000 8,000,000 Inv...
A: Solution: Expenses are cost of operations to generate revenue for the business. Mainly there are two...
Q: How much is the total manufacturing cost for the year?
A: Total manufacturing cost is calculated as total costs incurred in manufacturing the product. Total m...
Q: Which of the data above should be ignored in making the special-order decision? For what reason?
A: Special-order decisions are the business decisions in which management has to accept or reject a spe...
Q: . Log-rolling, setting quotas and cost-cutting are variables under __________________. A. Developing...
A: The answer is stated below:
Q: From pages 5-1 and 5-2 of the VLN, which statement is FALSE as it relates to a trade discount? Group...
A: Trade discount refers to the discount which is a deduction from the list price of the goods that are...
Q: Which is not a feature of final tax? A. Covers certain passive income B. Covers all capital gains C....
A: Solution Capital gain can be defined as any profit that is received through the sale of capital asse...
Q: Factory Overhead Cost Budget Toot Sweet Company budgeted the following costs for anticipated produc...
A: Factory overheads are the indirect costs related with the manufacturing and production of goods. The...
Q: Hélp Save & Ex On January 1, Eastern College received $1,330,000 from its students for the spring se...
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service...
Q: share capital of a company may consis
A: Share capital indicating simply the capital gained by the company by issuing shares. It may issued b...
Q: The stockholders' equity section of Meyer Corporation's balance sheet as of December 31, 2018 is as ...
A: Shareholders' equity section of a company represents the amount related to its shareholders. It incl...
Q: ncrease in raw materials inventory Decrease in goods in process inventory Decrease in finished goods...
A: Cost of goods sold will be the cost of goods manufactured increased by beginning finished goods inve...
Q: bor Cost Budget Rip Court Racket Company manufactures two types of tennis rackets, the Junior and P...
A: Rip Court Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models...
Q: Record adjusting journal entries for each separate case below for year ended December 31. Assume no ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: This is for QuickBooks. I am not so worried about the account name but more of the account type and ...
A: Cheque is the order to the bank by the company whose have to account in the bank and they give chequ...
Q: Preferred stock, 2% cumulative, $7.50 par, 100,000 shares authorized, ? shares issued and outstandin...
A: Shareholder's equity account is shown in statement of financial position. It shows the ownership of ...
Q: t's Gross Profit Margin for the year ended December 3
A: Gross profit margin indicating the percentage ratio of revenue a business earning after deducting th...
Q: hat amount should be reported as unappropriated retained earnings at year-end?
A: Solution Concept Reacquisition of share to be held as treasury does not affect the retained earnings...
Q: Select all that are prepared by management and included in the company's Form 10-K tiled with the
A: Form 10-k is the report which is prepared by management of public company and filed with SEC. It inc...
Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: The year-end adjusted trial balance of the Tydne Tool and Die Corporation included the following acc...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: DRE Corporation had Common Stock - $20 par, 10,000 shares authorized, 4,500 shares issued and outsta...
A: Solution Concept Stock split Stock split means splitting the number of outstanding i...
Q: transitory earnings are present, which of the following correctly depicts the order used on the inco...
A: Transitory earning are temporary earnings that are not earned in the regular course of business. The...
Q: If a revaluation of the subsidiary’s assets is performed on consolidation, the subsidiary’s assets a...
A: The parent company acquires the controlling interest in subsidiary with purchase of more than 50% sh...
Q: Good Manufacturing Company applies manufacturing overhead at the rate of 150% of direct labor hour. ...
A: Manufacturing overhead is the cost that is associated with making the product. Generally, these are ...
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021. ...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: Page 4 of 4 12. Mr. Bean receives a monthly basic salary of P38,000. He also receives P2,0O00 monthl...
A: Total Compensation = 38000 +2000 +2000 +500 = php 42,500 A) Gover...
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur i...
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account...
Q: On October 1, Vista View Company rented warehouse space to a tenant for $3,900 per month and receive...
A: Answer) Calculation of Balance of Unearned Rent account on December 31 Balance of Unearned Rent Acco...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: On April 1, Otisco, Inc. paid Garcia Publishing Company $2,268 for 36-month subscriptions to several...
A: Given, Subscriptions paid in advance on April = $2,268 April to December = 9 months
Q: 3. What accounting principle is being violated in the following: a. The owner mixed up his personal ...
A: a.) Economic or business entity concept is violated - as per business entity concept the transaction...
Q: Fair value is determined as: Select one: a. The current entry price. b. The current exit price. c. A...
A: Fair value is a broad measure of an asset's worth and is not the same as market value, which refers ...
Q: If assets are $348,000 and liabilities are $188,000, then equity equals: Multiple Choice 6 Ints S 02...
A: Answer:- Equity = Assets - Liabilities =$ 348,000 - $188,000 = $ 160,000
Q: Compute the present value of the minimum lease payments
A: Present value of the lease payments means that value of the lease payments which the lessee is payin...
Q: A project has annual cash flows of $3,000 for the next 10 years and then $5,500 each year for the fo...
A: IRR is the rate on which present value of cash inflows and present values of cash outflows are equal...
Q: guy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10...
A: Solution Given Authorized share capital 400000 shares Issued as on January 1 2019 (10 par ...
Q: Matthew Martin, the sole stockholder of Innovation Consulting, started the business by investing $46...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: On July 1 of the current calendar year, Olive Co. paid $7,700 cash for management services to be per...
A: The accounts may not be visible if you use accounting software or outsource your accounting, but the...
Q: b) Refer to the following data: Direct material used ...
A: Period costs are those costs that are not included in the cost of the product and are expensed in th...
Q: ) Given these facts, calculate return on assets: Sales.............................................
A: Given, Net income = $3,050,000 Average total assets = $7,100,000
Q: Quinine Company has a 12/31 year end and buys a bottling machine to use in its manufacturing plant o...
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage , ...
Q: The correct journal entry to record bonds issuance is:
A: As per our protocol and guidelines we provide solution to one question but as you uploaded and asked...
Q: (a) Mr. Talukder retired very recently receiving 70% lump sum of his total retirement payment of 5 M...
A: a). To see whether the decision was right or not, we need to calculate the return he was able to ear...
Q: Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. S...
A: THE MULTI-STEP INCOME STATEMENT PROVIDES DETAILED REPORTING OF YOUR COMPANY'S REVENUES AND EXPENSES ...
Can I ask the solution to this problem? In good accounting form. Thank you.
Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020?
Step by step
Solved in 2 steps
- 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%.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.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.