How much is the gross profit from the sale of the inventory on May 1, 2021?

Q: Forevermore Company uses journal entry method in recording share capital transaction. On January 1,…

A: Journal entries are the first accounting treatment without we can't prepare financial statements.

Q: James Company issued shares as consideration for the purchase of inventory on January 1, 2020. The…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Right Shares - It is refer to the issuance of those shares which was offered by the company to their…

Q: Concord Company has the following securities in its investment portfolio on December 31, 2020 (all…

A: Fees on the sale of share are deducted from sale proceeds of investments.

Q: If income tax rate is 30%, how much is the diluted EPS for the year ended December 31 , 2020

A: Formula: Diluted EPS=Net Income-Preferred Dividend PaidWeighted Avarage No of common shares+…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: Comical Company issued rights to stockholders to subscribe to an additional share of its common…

Q: Deborah Corporation had the following Treasury stock transactions during May 2020.  Please record…

A: CALCULATION FOR JOURNAL ENTRIES AMOUNTS :   DATE  WORKING     MAY 5 , 2020 800 SHARES X $20 =…

Q: Parnevik Company has the following securities in its investment portfolio on December 31, 2020 (all…

A: a) Date Accounts title and Explanation Debit ($) Credit ($)   Jan.15 2021 Cash ($66,000 - 2,150)…

Q: On December 31, 2020, Dreamer Company reported as Available-for-sale securities: AT Company, 5,000…

A: Common stock represents ownership in a corporation. They have voting rights in the company's affairs…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Share split in the business is one in which one share of the company is split or broken into…

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: A publicly traded company can raise more money through a right issue of shares, also known as a…

Q: On January 1, 2021, Starlight Company converted $150,000 bonds into 90,000 shares of $1 par value…

A: The bonds are the financial instruments used by the business to raise money from the investors of…

Q: Delta NV has share capital of $l m in shares of $0.25 each. At 31 May 2019 shares had a market value…

A: Right Issue :— It is the new shares issued to existing equity shareholders at lower price.…

Q: On January 1, 2020,  Zen Company acquired trading securities with the following market value on…

A: The trading securities are recorded on the fair value in the balance sheet. But the gain on such…

Q: On March 1, 2019, Mall Co. issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value,…

A: Here in this question, we are required to determine how much proceeds should be allocated to…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Balance in ordinary shares before split=Number of shares×Par value=400,000×P25=P 10,000,000

Q: On November 1, 2020, Drucker Co. acquired the following investments in equity securities measured at…

A: d.   Journal entries are as follows:

Q: Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and…

A: Adjusting entriesThe entries in the journal made to provide accurate balances for the reporting of…

Q: McElroy Company has the following portfolio of investment securities at September 30, 2020, its most…

A: Working note 1: Calculate the unrealized holding gain (loss) on September 30, 2020. Investment…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: Gannon company acquired 20,000 shares of its own common stock at $20 per share on February 5, 2020…

A: The shares  wer acquired  at a cost of  $20per share, hence at the time of sale. Treasury  stockmust…

Q: On March 22, 2023, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21…

A: Treasury stock are shares that were repurchased by a company in a share buyback.Purchase of treasury…

Q: ABC Company had 100,000 of P 15 par value ordinary shares on January 1,2019. During 2019, the…

A: Treasury shares are those shares which are being repurchased by the business from the open market…

Q: On December 31, 2021, EOS Co's shareholders' equity consisted of the following: 8%, cumulative…

A: Book Value Per Share (BVPS) refers to the per-share value of equity on an accrual accounting basis…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: The stock split refers to cancel the old shares issued and issuing new shares against old shares.

Q: 14. Caviar Company was organized on January 1, 2020 with 100,000 authorized shares of P100 par…

A: Treasury shares are shares repurchased or reacquired by the business from its shareholders. These…

Q: A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common…

A: Bonds payable = 366 * $ 1000 = $ 366000 Common Stock = 366 * 28 shares * $ 12 par value = $ 122976

Q: On August 1, 2021, Comical Company issued rights to stockholders to subscribe to additional share of…

A: The company is not required to do accounting on the issuance of stock rights. The transaction is…

Q: The cash dividends declaration on December 15 includes a debit to retained earnings of

A: As per our protocol we provide solution to the one question only and you have asked four multiple…

Q: On April 15, 2023, Rizzo Inc. purchased 34,500 shares of Hernandez, Inc. for $22 per share (passive…

A: The income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: Sunland Company was organized on January 2, 2021, with 508000 authorized shares of $10 par value…

A: Treasury stock is reacquired shares by the company. The required share can be the issued in future.…

Q: Sheridan Company acquired 21400 shares of its common stock at $18 per share on February 5, 2025, and…

A: The treasury stock includes the own shares of the company that are repurchased from the…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: Number of shares outstanding after split = Number of shares outstanding before split x Split ratio…

Q: ABC Company had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…

A: Basic earnings per share is the per share amount that is available for the ordinary shareholders…

Q: T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019…

A: A journal entry is the first step in chronicling financial transactions in the books of business…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.