Larkspur Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2021, there were 35,500 common and 1.100 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $106. The balance in the Retained Earnings account on January 1, 2021, was $298.500. During 2021, the company had profit of $127,000 and declared a total of $70,500 of dividends, of which $52,000 was paid during the year. Prepare the shareholders' equity section of the balance sheet on December 31, 2021. LARKSPUR LIMITED Balance Sheet (Partial) %24

Larkspur Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2021, there were 35,500 common and 1.100 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $106. The balance in the Retained Earnings account on January 1, 2021, was $298.500. During 2021, the company had profit of $127,000 and declared a total of $70,500 of dividends, of which $52,000 was paid during the year. Prepare the shareholders' equity section of the balance sheet on December 31, 2021. LARKSPUR LIMITED Balance Sheet (Partial) %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021?
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…
Oikawa Corporation has 150,000 Ordinary Shares authorized. As of January 1, 2020, 100,000 shares were issued of which 5,000 shares were in the treasury. During 2020, transactions were as follows: May 1 – Reissued 1,000 Treasury shares Aug 1 – Issued 10,000 Ordinary shares Dec 15- A 2 for 1 share split took effect On December 31, 2020, how many shares were outstanding?
LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common stock. During the year, the company had the following transactions: January 5- Issued 400,000 common shares for cash, at $ 1.00 each. February 7- issued 250,000 common shares for cash, at $ 1.50 each. April 3- Reacquired 10,000 of its common shares, by paying $ 3,00 per shoare. June 17- Sold 5,000 of its treasury stock, at a price of $ 4,00 per share. September 20- Sold all the remaining treasury stock it has, at a price of $ 3.2 per share. October 30- Reacquired 20,000 of its common shares, at $ 2.5 per share. Question: What is the dollar balance in the Additional Paid in Capital from Treasury stock account, at year end? (Note: write your answer as a number only, vwith no $ signs or
The Monty Corporation was incorporated on January 1, 2021, with the following authorized stocks: 20,000 shares of common stock no par value, stated value $40 per share. 8,000 shares of 5% cumulative preferred stock, par value $10 per share. During 2021, Monty issued 10,000 shares of common stock for a total of $600,000 and 4,000 shares of preferred stock at $24 per share. In addition, on December 20, 2021, 1,000 shares of preferred stock were issued at a purchase price of $30. What should Monty report as preferred stocks on its December 31, 2021, balance sheet?
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…
Kress Products' corporate charter authorized the firm to sell 800,000 shares of $10 par common stock. At the beginning of 2019, Kress sold 262,900 shares and reacquired 1,650 of those shares. The reacquired shares were held as treasury stock. During 2019, Kress sold an additional 16,300 shares and purchased 3,100 more treasury shares. Required: Determine the number of issued and outstanding shares at December 31, 2019. Issued shares shares Outstanding shares shares
Windsor Corporation was organized on January 1, 2020. It is authorized to issue 9,700 shares of 8%, $100 par value preferred stock, and 540,200 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. Issued 80,290 shares of common stock for cash at $6 per share. 10 Mar. Issued 5,190 shares of preferred stock for cash at $111 per share. 1 Issued 24,970 shares of common stock for land. The asking price of the land was $91,64O; the fair value of the land was $80,290. Apr. 1 May Issued 80,290 shares of common stock for cash at $9 per share. 1 Aug. Issued 9,700 shares of common stock to attorneys in payment of their bill of $49,100 for services rendered in helping the 1 company organize. Sept. Issued 9,700 shares of common stock for cash at $11 per share. 1 Nov. Issued 1,060 shares of preferred stock for cash at $107 per share. 1
The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the beginning of 2020, 18,000 ordinary shares were issued and outstanding. These shares had been issued at P27 per share. During 2020, the company entered into the following transactions: January 4 - Issued 1,300 ordinary shares at P28 per share. March 19 - Exchanged 12,000 ordinary shares for a machine. The ordinary share was selling at P30 per share. May 9 - Reacquired ordinary shares at P29 per share. July 19 - Accepted subscriptions for 1,000 ordinary shares at P31 per share. The contract called for 10% down payment with the balance due on December 1. September 4 - Sold 500 of treasury shares at P32 per share. December 1 - Collected the balance due on July 19 subscriptions and issued the stock certificate. How much is the total contributed capital for December 31, 2020?
DOUBLE Company issued 1,000,000 shares of ordinary shares. Of these, 150,000 shares were held as treasury shares on December 31, 2020. During 2021, transactions involving DOUBLE ’ ordinary share were as follows: May 1 50,000 shares of treasury share were sold. Aug 1 500,000 shares of previously unissued shares were sold. Nov 1 A 5-for-1 share split took effect. As an auditor of the company, you were requested to present to the board the number of shares of DOUBLE’s ordinary shares that were is outstanding on December 31, 2021.
On January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. During the year, 13,000 treasury shares were reissued. Right after the reissuance of the treasury shares, the company declared a 3-for-1 split. In December 2021, additional 5,000 shares were purchased and placed in treasury. Determine the number of shares issued.
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…