In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2024 to discontinue accountingfor reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status ofunissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2023, UMC's balancesheet reported the following shareholders' equity:Common stock, $1 parPaid-in capital-excess of parRetained earningsTreasury stock (5.3 million shares at cost)Total shareholders' equityRequired:Identify the type of accounting change this decision represents and prepare the journal entry to effect the reclassification of treasuryshares as retired shares.Complete this question by entering your answers in the tabs below.Type ofaccountingchangeGeneralJournal($ in millions)$ 2651,0601,086(90)$ 2,321Prepare the journal entry to effect the reclassification of treasury shares as retired shares.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roundintermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).Show less AView transaction listTunt ontry worksheet

Journal entries are the first process in the accounting cycle. All the transactions which occur…

Answered: In keeping with a modernization of…

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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Please show the solution in good accounting form. 8. How much is the total shareholders' equity at year-end?
On June 1, 2018, Coronado Company and Whispering Company merged to form Metlock Inc. A total of 877,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 652,000 shares of stock for cash. All 1,529,000 shares were outstanding on December 31, 2020. Metlock Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1.000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Metlock Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,444,000. (The tax rate is 20%.) Determine the following for 2020. (a) The number of shares to be used for calculating: (Round answers to 0 decimal places, eg. $2,500.) (1) Basic earnings per share 1366000 shares (2) Diluted earnings per share 1379200…
On June 1, 2018, Bramble Company and Sunland Company merged to form Coronado Inc. A total of 761,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis.On April 1, 2020, the company issued an additional 652,000 shares of stock for cash. All 1,413,000 shares were outstanding on December 31, 2020.Coronado Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date.Coronado Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,390,000. (The tax rate is 20%.)Determine the following for 2020.(a) The number of shares to be used for calculating: (1) Basic earnings per share (2) Diluted earnings per share (b) The earnings figures to be used for calculating:…
Copley Corporation is preparing their financial statements for the year ending February 28, 2022. Copley Corporation has two categories of stock: Preferred and Common. The preferred stock is structured such that the holders of the preferred stock may convert one share of preferred stocks into one share of common stock if the market price of the common stock is greater than $1,000. As of February 28, 2022, the market price of the common stock had never reached $1,000. In the preparation of the 2/28/22 Income Statement Copley’s staff accountant was calculating the Basic and Diluted EPS. While calculating the diluted EPS the staff accountant is unsure of whether to include the potential impact of the convertible preferred stock since the trigger conversion price had not been met as of 2/28/22. Accounting Issue: In the calculation for Diluted EPS should Copley Corporation include the impact of the convertible preferred stock since the trigger conversion price of $1,000 had not…
How much is the Ordinary Share Capital at year end? please kindly answer
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.0 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,300 common shares at $4.4 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $32,000. 31 Issued 76,000 common shares in exchange for land, building, and equipment, which have fair market values of $356,000, $476,000, and $44,000, respectively. Mar. 4 Purchased equipment at a cost of $8,120 cash. This was thought to be a special bargain price. It was felt that at least $10,400 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $92,000. The Income Summary account was closed. 2021…
The following account balances are available from the ledger of Yutao Shui Corporation on December 31, 2019: Common Shares (22,000 shares authorized and outstanding) $ 1,144,000 Retained Earnings (Deficit) (190,000) On January 2, 2020, the corporation put into effect a shareholder-approved reorganization by agreeing to pass the common shares over to the creditors in full payment of the $240,000 Notes Payable, writing up Buildings by $128,300, and eliminating the deficit. Assume that Yutao Shui follows ASPE. Prepare the required journal entries for the financial reorganization of Yutao Shui Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation (To record the elimination of the deficit against share capital) (To record write-up of buildings to fair value and record the negotiated change in control) Debit…
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.0 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,300 common shares at $4.4 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $32,000. 31 Issued 76,000 common shares in exchange for land, building, and equipment, which have fair market values of $356,000, $476,000, and $44,000, respectively. Mar. 4 Purchased equipment at a cost of $8,120 cash. This was thought to be a special bargain price. It was felt that at least $10,400 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $92,000. The Income Summary account was closed. 2021…
C5.1
Flint's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issuance of an unlimited number of common shares and 70,000 preferred shares with a $2 dividend. At the beginning of the December 31, 2020 year, the opening account balances indicated that 30,000 common shares had been issued for $5 per share, and no preferred shares had been issued. Opening retained earnings were $311,000. The transactions during the year were as follows: Jan. 15 Issued 12,000 common shares at $6 per share. Feb. 12 Issued 2,300 preferred shares at $56 per share. Sept. 2 Issued 5,000 common shares in exchange for land valued at $30,000. Oct. 31 Declared and paid a dividend on preferred shares of $2 per share. Nov. 1 Declared and paid a dividend on common shares of $1.20 per share. Nov. 15 Purchased and retired 500 preferred shares at $58 per share. Dec. 31 After preliminary closing entries, the Income Summary account had a credit…
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2020. Gull incurred the following expenses during its first year of operations (November 1, 2020–December 31, 2020): Expenses of temporary directors and organizational meetings $21,000 Fee paid to state of incorporation 3,000 Expenses for printing and sale of stock certificates 11,000 Legal services for drafting the corporate charter and bylaws (not paid until January 2021) ⁢ 19,000 Assuming that Gull Corporation elects under § 248 to expense and amortize organizational expenditures, what amount may be deducted in 2020? Assume the same facts as above, except that the amount paid for the legal services was $28,000 (instead of $19,000). What amount may be deducted as organizational expenditures in 2020?
Please show the solution in good accounting form. 5. How much is the TOTAL treasury share capital? 6. How much is the Retained earnings, END? 7. How much is the Retained earnings, end - UNAPPROPRIATED?

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