Greentea Corporation earned net income of $125,000 during the year ended December 31, 2021. On December 15, Greentea declared the annual cash dividend on its 10% preferred stock (15,000 shares with total par value of $150,000) and a $0.75 per share cash dividend on its common stock (30.000 shares with total par value of $300,000). Greentea then paid the dividends on January 4, 2022. Read the requirements. a. Journalize for Greentea Corporation the declaration for the cash dividends on December 15, 2021. (Record debits first, then credits. Exclude explanations from any journal entries. Use only a single account to record the dividends.) Dec Date 2021 15 Journal Entry Accounts Debit Credit Requirements Journalize the following for Greentea: a. Declaring the cash dividends on December 15, 2021 b. Paying the cash dividends on January 4, 2022 Did retained earnings increase or decrease during 2021? By how much? Print Done - X

Greentea Corporation earned net income of $125,000 during the year ended December 31, 2021. On December 15, Greentea declared the annual cash dividend on its 10% preferred stock (15,000 shares with total par value of $150,000) and a $0.75 per share cash dividend on its common stock (30.000 shares with total par value of $300,000). Greentea then paid the dividends on January 4, 2022. Read the requirements. a. Journalize for Greentea Corporation the declaration for the cash dividends on December 15, 2021. (Record debits first, then credits. Exclude explanations from any journal entries. Use only a single account to record the dividends.) Dec Date 2021 15 Journal Entry Accounts Debit Credit Requirements Journalize the following for Greentea: a. Declaring the cash dividends on December 15, 2021 b. Paying the cash dividends on January 4, 2022 Did retained earnings increase or decrease during 2021? By how much? Print Done - X

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

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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.
Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?
Roseau 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.
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
Gleneagles Corporation earned net income of $70,000 during the year ended December 31, 2020. On December 15, Gleneagles had declared the annual cash dividend on its $0.50 preferred shares (10,000 shares issued for $100,000) and a $0.60 per share cash dividend on its common shares (25,000 shares for $50,000). Gleneagles then paid the dividends on January 4, 2021. Journalize the following for Gleneagles Corporation: a. Declaring the cash dividends on December 15, 2020 b. Paying the cash dividends on January 4, 2021 Did Retained Earnings increase or decrease during 2020? By how much?
Madison Company earned net income of $75,000 during the year ended December 31, 2018. On December 20, Madison declared the annual cash dividend on its 8% preferred stock (par value, $150,000) and a $0.50 per share cash dividend on its common stock (45,000 shares). Madison then paid the dividends on January 10, 2019. Prepare the journal entries to record the declaration and the distribution of the dividends.
2) Jameson Company earned net income of $75,000 during the year ended December 31, 2018. On December 20, Jameson declared the annual cash dividend on its 8% noncumulative preferred stock (par value, $150,000) and a $0.50 per share cash dividend on its common stock (45,000 shares). Jameson then paid the dividends on January 10, 2019. Prepare the journal entries to record the declaration and the distribution of the dividends.
Mocha Company earned net income of $110,000 during the year ended December 31, 2018. On December 15, Mocha declared the annual cash dividend on its 3% preferred stock (par value, $125,000) and a $1.00 per share cash dividend on its common stock (62,000 shares). Mocha then paid the dividends on January 4, 2019. Read the requirements. Requirement 1. Journalize for Mocha the entry declaring the cash dividends on December 15, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation 2018 Dec. 15 Debit 2019 Jan. 4. Requirement 2. Journalize for Mocha the entry paying the cash dividends on January 4, 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Credit Debit Credit
Titanic Corporation's net income for the year ended December 31, 2019, is $380,000. On June 30, 2019, a $0.75 per-share cash dividend was declared for all common stockholders. Common stock in the amount of 38,000 shares was outstanding at the time. The market price of Titanic's stock at year end (12/31/19) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2018. Required: Calculate the ending balance (12/31/19) of retained earnings.
Frenchroast Company earned net income of $93,000 during the year ended December 31, 2020. On December 15, Frenchroast declared the annual cash dividend on its 4% preferred stock (par value, $128,000) and a $0.55 per share cash dividend on its common stock (67,000) shares. Note: When entering percent values, write the value as a percent without the percent (96) symbol. Frenchroast then paid the dividends on January 4, 2021. Calculate Dividends: Preferred Dividends - Dividend percent X par value Common Dividends - Share price X # of shares Total Dividend Preferred Dividends- Common Dividends Total Dividend Date December 15 January 4 Description X Debit Credit
Flyaway Travel Company reported net income for 2021 in the amount of $90,000. During 2021, Flyaway declared and paid $2,125 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $10,000 cash dividends on its common stock. Flyaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2021. What is 2021 basic earnings per share?
Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 105,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,000; 2022, $13,900; and 2023, $27,000.