QOLUTION &TUMARSHamilton Travel Corporation's (HTC) shareholders' equity section at December 31, 2021appears below:Shareholders' equityCommon shares, 1,000,000 shares authorized,80,000 shares issuedRetained earningsTotal shareholders' equityOn June 30, 2022, the board of directors of HTC declared a 10% stock dividend, payable on July31, 2022, to shareholders of record on July 15, 2022. The fair market value of HTC's shares onJune 30, 2022, was $12 per share.On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December15, 2022. HTC's shares were selling for $16 on December 1, 2022, before the share split wasdeclared. Profit for 2022 was $225,000 and there were no cash dividends declared.$720,000180,000$900.000Instructions(a) Prepare the journal entries on the appropriate dates to record the stock dividend and thestock split. Indicate the date of the entry and if no entry is required, write "no entry".(b) Fill in the amount that would appear in the shareholders' equity section for HTC at December31, 2022, for the following items:1. Common shares2. Retained earnings3. Total shareholders' equity4. Number of common shares issued.$$

A journal is a detailed account that records all the financial transactions of a business, to be…

Answered: Hamilton Travel Corporation's (HTC)…

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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The following shareholders' equity accounts and the related activity during the year are in the ledger of Kenton Corporation at December 31, 2020. Common shares (unlimited authorized): Balance, Jan. 1 (259,000 shares) $1,725,000 Balance, Dec. 31 (260,000 shares) 1,739,000 Shares issued (1,000 shares) 14,000 Preferred shares (21,000 authorized, $8, cumulative): Balance, Jan. 1 (14,000 shares) 739,000 Balance, Dec. 31 (17,000 shares) 882,000. Shares issued (3,000 shares) 143,000 Additional contributed capital: Balance, Jan. 1 Balance, Dec. 31 35,000 35,000 Accumulated other comprehensive income (loss): Balance, Jan. 1. Balance, Dec. 31 Other comprehensive income Retained earnings: Balance, Jan. 1 Balance, Dec. 31 Loss Cash dividends (32,300) 16,400 48,700 ? 1,121,000. (119,000) (147,000) 1) Prepare a statement of changes in equity for the year ended December 31, 2020. (If an amount reduces the account balance then enter with negative sign, e.g. -15,000 or in parenthesis, e.g. (15,000).)…
Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Transactions during 2019 and other information relating to the shareholders' cquity accounts were as follows:1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31, 2018,Dakota had 100,000 authorized shares of $100 par, 10%, cumulative preferred stock; and 3,000,000 autho-rized shares of no-par common stock with a stated value of $5 per share.2. On January 9, 2019, Dakota formally retired all 30,000 shares of its treasury common stock and had them revert to an unissued basis. The treasury stock had been acquired on January 20, 2018. The shares were originally issued at $10 per share,3. Dakota owned 10,000 shares of Bush Inc, common stock purchased in 2016 for $750,000. The Bush stock was included in Dakota's short-term marketable securities portfolio at the end of 2018 at a value of $650,000.On February 13, 2019, Dakota declared a dividend in kind…
The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its initial year of operations and existence: 6. a. On January 7, the articles of incorporation were filed with the Securities and Exchange Commission (SEC). The SEC authorized the issuance of 10,000 shares of P50 par value preference share capital and 200,000 shares of P10 par ordinary share capital. On January 28, forty thousand ordinary shares were issued at P15 per share. On February 14, one hundred twenty thousand ordinary shares were issued in exchange for land and building that have an appraised value of P700,000 and P1,100,000, respectively. On this date, the shares trade at P15 per share on the over the counter market. On February 24, the company issued to the lawyers 2,000 ordinary shares for legal services in connection with the incorporation. The fair value of the shares on this date is P16. On September 12, the company received subscriptions for 10,000 preference shares at P53…
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c. On July 12, 2022, the corporation declared and distributed a 4 %…
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 8 million shares;issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital—excess of par 12,000,000 Retained earnings 14,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $30 on April 1, 2021, and $40 on June 1, 2021. Required:Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend. Complete the below table to calculate the stock dividend. Stock Dividend Number of outstanding shares Stock dividend percentage (%) % Number of shares to be issued Choose from list below*** Value of stock dividend $0 *** Options are: x Par…
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The shareholders' equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 8 million shares; Issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital-excess of par 12,000,000 Retained earnings 19,000,000 ON April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $34 on April 1, 2021, and $44 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend. Sock Dividend Complete the below table to…
On December 31, 2019, the stockholders' equity section of Arndt, Inc., was as follows: Ordinary shares, par value P10; authorized 30,000 shares; issued and outstanding 9,000 shares P 90,000 Shares Premium 116,000 Retained earnings 154,000 Total stockholders' equity P360,000 On March 31, 2020, Arndt declared a 10% share dividend, and accordingly 900 additional shares were issued, when the fair value of the shares was P18 per share. For the three months ended March 31, 2020, Arndt sustained a net loss of P32,000. The balance of…
The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2018, is as follows: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior’s legal capital at December 31, 2019.
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