Kingbird, Inc. was organized on January 1, 2021. During its first year, the corporation issued 1,500 shares of $50 par value preferredstock and 110,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021,$4,000, 2022, $11,500; and 2023, $27,400.(a)Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative. (Do notleave any answer field blank. Enter O for amounts.)Total dividendAllocation to preferred stockRemainder to common stock$202120222023

DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Answered: Kingbird, Inc. was organized on January…

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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On April 1, 2023, 400,000 common shares were issued at $0.90 per share. On June 1, the board of directors declared a 10% share dividend to shareholders of record on June 15; the distribution date was July 1. The market prices of the shares on June 1, June 15, and July 1 were $2.58, $2.06, and $2.36, respectively. On December 11, the board of directors declared a 2:1 share split to shareholders of record on December 15; the distribution date was December 20. Profit earned during the year was $1,547,500. Required: Prepare the company's equity section on the December 31, 2023, balance sheet.
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).)…
The following transactions occurred for Rothman Corp. during 2024, its first quarter of operations (fiscal year ending Dec. 31): 1. 2. On Oct. 5, Rothman issued 2000 shares of $10 par common stock in an IPO and 400 shares of $40 par preferred stock for a lump sum of $85,000 cash. The values of the common and preferred stock were appraised separately at $30 and $50 per share, respectively. On Oct. 20, Rothman declared an 80% common stock dividend, when the market value per share of the common stock was $32. 3. On Dec. 5, the common stock dividend was issued. 4. On Dec. 20, a 3-for-1 stock split occurred for common stock. 5. On Dec. 30, Rothman purchased 100 shares of its own common stock for $14 per share. Instructions: A. Prepare the general journal entries to record each of the above transactions. B. Determine the number of common shares (1) issued and (2) outstanding at Dec. 31, 2024.
At January 1, 2023, Elan Corporation had 300,000 common shares outstanding (no preferred issued). On March 1, the corporation issued 45,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2 for 1 stock split. On October 1, the corporation purchased on the open market 180,000 of its own shares at $35 each and retired them. Instructions Calculate the weighted average number of common shares outstanding to be used in calculating earnings per share for 2023. Increase (Decrease) Shares Outstanding Stock Split TPOTELTIDAIDAL Portion of Year Outstanding
Dekalb Resorts has been in business since 1987.The stockholders' equity section of Dekalb's balance sheet on January 1, 2019 is as follows: Common Stock (Par value $25.00 per share; 50,000 shares authorized; 28,000 shares issued and outstanding) Additional Paid-in Capital on Common Stock Preferred Stock (Par value $5.00 per share; 5,000 shares authorized; 3,000 shares issued and outstanding) Additional Paid-in Capital on Preferred Stock Retained Earnings Total Stockholders' Equity Stockholders' Equity Section as of January 1, 2019 Date July 15, 2019 700,000 100,000 15,000 7,000 560.000 1,382,000 Required: 1. Prepare the journal entries for the following three transactions: On July 15, 2019, Dekalb issues 600 shares of its preferred stock, receiving $15.00 per share. Accounts debits credits On December 31, 2019, Dekalb declares annual dividends on preferred stock. Dividends are to be paid on the shares of preferred stock outstanding on December 31, 2019. Each share of preferred stock…
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?
Stampede Inc. (SI) is a public company. On January 1, 2020, 65,000 common shares were issued and outstanding. During the year: 15,000 additional common shares were issued on April 1. 20,000 preferred shares were issued on June 1; these shares are non-cumulative and carry an annual dividend entitlement of $2 per share. No dividends were declared. Net income was $2,000,000. What is the basic EPS for SI for its fiscal 2020 year end? Question 23 options: a) $22.75 b) $25.00 c) $25.70 d) $26.23
Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2021–2023. At December 31, 2020, the corporation’s accounts included: ($ in thousands) Common stock, 115 million shares at $1 par $ 115,000 Paid-in capital—excess of par 690,000 Retained earnings 940,000 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. 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 $3.1 million, but were purchased two years previously for $2.7 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.…
At the beginning of 2019, Hardin Company had 280,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 43,000 shares of stock at $21 per share. June 1 Issued a 15% stock dividend. July 1 Issued 9,000 shares of stock at $26 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 84,000 shares as treasury stock at a cost of $29 per share. Nov. 30 Reissued 53,000 treasury shares at a price of $32 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. fill in the blank2. Determine the number of common shares outstanding at December 31, 2019. fill in the blank
Zakaryan Corporation was organized on January 1, 2020. The corporation's governing documents authorized the issue of 100,000 shares of $1 par common stock. During 2020, Zakaryan had the following transactions relating to stockholders' equity: Issued 10,000 shares of common stock at $14 per share. Issued 20,000 shares of common stock at $16 per share. Reported a net income of $200,000. Paid dividends of $100,000. Purchased 3,000 shares of treasury stock at $20 (part of the 20,000 shares issued at $16). What is total shareholders' equity at the end of 2020? O $600,000. O $540,000. O $500,000. O $400,000. 4
On September 15, 2023, the Board of Directors of Sandhill Company declared a $0.45 per share cash dividend, payable on October 31 to shareholders of record as of October 1. On the date of declaration, Sandhill Company had 206,000 common shares issued, of which 18,000 were held in Treasury. On October 15, 2023, the company issued an additional 66,000 common shares for $5.75 each. Prepare all the required journal entries to record these transactions. (List all debit entries before credit entries. 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 o for the amounts. Record journal entries in the order presented in the problem.) Date > > > Account Titles and Explanation Debit Credit
The board of directors of Tru Corporation declared cash dividends of $4.4 million, $9.0 million, and $51.0 million in each of its first 3 years of operation: 2019, 2020, and 2021, respectively. The shareholders' equity of Tru Corporation includes the items shown below. Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 5%, $100 par, 1,000,000 shares outstanding Required:Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is noncumulative and nonparticipating. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).

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