In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2: Reacquired 61,000 shares at $11.10. 17: Sold 11, 000 shares at $13.55. 17: Sold 16, 000 shares at $7.55. March May Southwestern had issued 100,000 shares of its $1 par common stock for $10 several months ago. Required: Prepare the journal entries to record the above transactions, using the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Q: On April 10, 2019, Amelia Inc. purchased 450 shares of its own common stock in the market for $22…
A: Accounting equation is based on the concept of double entry system where it assumes that each…
Q: 3. On January 1, 2021, Sealed Air had 100,000 shares of common stock outstanding. The following…
A: Solution (3) : Net Income = $291,750 Calculation of Weighted Average of Number of Equity Shares:…
Q: Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2020,…
A: Treasury shares means the share which has been buy back by the company . It will be shown as…
Q: Required: 1. National Supply reacquired shares of Its common stock in two separate transactions and…
A: Shares refer to the unit issued by the company to raise funds from the market by making an agreement…
Q: Swifty Corporation has outstanding 20,000 shares of $5 par value common stock. On August 1, 2025,…
A: Treasury Stock is an own share purchased by the organization from the open market. They can either…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: When the shares issued in the market are bought back by the company they are referred to as Treasury…
Q: A (Click the icon to view the transactions.) Required. Prepare journal entries for the transactions.…
A: A share is one of the units in which the company's capital is divided into units. shares are the…
Q: Wildhorse Corporation issued 106,000 shares of $20 par value, cumulative, 9% preferred stock on…
A: A dividend is a distribution of profits by a company to its shareholders, usually in the form of…
Q: Prepare the journal entries for all these transactions. Each transaction is independent from the…
A: When stock are issued at price which is more than the par value, the excess amount is transferred to…
Q: Cedar Corporation is authorized to issue 20,000 shares of 6%, $10 par, cumulative preferred stock.…
A: The journal entries are prepared to keep the record of day to day transactions of the business…
Q: On January 1, 2020, Vaughn Manufacturing issued 15,000 shares of $4 par value common stock for…
A: The journal entries are the first step of accounting to record the transactions on the regular…
Q: Blue Spruce Limited reported profit of $436,010 for its November 30, 2021, year end. Cash dividends…
A: Profit available to common share holders= Net profit- Preference dividend = 436010-69500 = 366510
Q: Sarasota Company has the following stockholders’ equity accounts at December 31, 2020. Common…
A: The question is based on the concept of Financial Accounting.
Q: Jameson Company earned net income of $75,000 during the year ended December 31, 2018. On December…
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: Prepare the necessary journal entries for the following transactions: On April 5, 2021, Graham…
A: Treasury stocks are repurchased shares of the company. The company can reissue these repurchased…
Q: At December 31, 2020, the balance sheet of J.R. International included the following shareholders'…
A: Date Account Titles and Explanation Debit Credit Jan'15 Treasury Stock (12,000 shares X $ 17 per…
Q: mal entry for each of the following transactions for a transaction/event, select "No journal es…
A: Treasury Stock When the shares issued in the market are bought back by the company they are referred…
Q: On the first day of 2021, Paccar had 100,000 shares of common stock outstanding. The following…
A: Earnings per share are the amount of earnings of the entity during the current period that is…
Q: Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2020, Sprinkle…
A: Definition: Treasury stock: The shares which were reacquired or bought back by the company, but…
Q: 10. In 2021, Xylem Inc. completed the treasury stock transactions listed below. February 2:…
A: When the stocks are repurchased by the issuing company from the shareholders, the repurchased stocks…
Q: On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for…
A: The question is related to repurchase of treasury stock under cost method. In the given question the…
Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February…
A: Treasury stock refers to the stock reacquired by the company and company pays cash to acquired these…
Q: Blue Devil Inc. completed the following transactions of stock issuance, treasury stock and stock…
A:
Q: Bonita Inc. has outstanding 10,400 shares of $10 par value common stock. On July 1, 2020,…
A: The Numerical has covered the concept of Treasury Stock. When a company purchased their own shares…
Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below.…
A: Introduction: The cost method is one of the most conservative methods of accounting for investments…
Q: Butler, Inc. had the following treasury stock transactions in 2024: July 8 Purchased 1,000 shares of…
A: The treasury stock is a stock in which the company buys back its own shares. The treasury stock is…
Q: Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2025, Sprinkle…
A: Treasury stock: Treasury shares refer to the shares that are bought back by the company from the…
Q: Marigold Inc. has outstanding 10,600 shares of $10 par value common stock. On July 1, 2020, Marigold…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Ivanhoe Inc. has outstanding 11,500 shares of $10 par value common stock. On July 1, 2020, Ivanhoe…
A: Cost Method of Treasury Stock - Under Cost method of recording treasury stock, shares purchased by…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry is the reporting of the transactions in the books of accounts.
Q: Washinton Company has the following stockerholders' equity accounts at December 31, 2020. Common…
A: Journal entries are to made to record the transactions for issue of shares, buy back of shares, etc.…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Introduction: A journal entry is an act of maintaining or producing records of any transaction,…
Q: Splish Inc. has outstanding 11,800 shares of $10 par value common stock. On July 1, 2020, Splish…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Washington Company has the following stockholders’ equity accounts at December 31, 2020. Common…
A:
Q: During 2020, Road Pavement Corp. engaged in the following selected transactions: Jan 01:…
A: Financial transactions are initially recorded in the form of journal entry.
Q: ABC Co. issued share capital of 20,000 shares, P5 par, at P10 per share. The accumulated profits on…
A: Treasury Stock refers to the company’s own outstanding stock bought back from stockholders. These…
Q: 2024, Western Transport Company entered into the treasury stock transactions described below. In…
A: A journal entry is a financial record kept by a company or individual to record a specific financial…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.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.
- 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?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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.
- 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.)Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- 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%.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.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.