Listed below are a few events and transactions of Kodax Company.Year 1January 2 Purchased 72,000 shares of Grecco Company common stock for $566,000 cash. Grecco has 216,000 shares ofcommon stock outstanding, and its activities will be significantly influenced by Kodax.September 1 Grecco declared and paid a cash dividend of $1.10 per share.December 31 Grecco announced that net income for the year is $513,900.Year 2June 1 Grecco declared and paid a cash dividend of $3.90 per share.December 31 Grecco announced that net income for the year is $745,400.December 31 Kodax sold 12,000 shares of Grecco for $125,000 cash.Prepare journal entries to record the above transactions and events of Kodax Company.Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount.View transaction listJournal entry worksheet123456Purchased 72,000 shares of Grecco Company common stock for $566,000cash. Grecco has 216,000 shares of common stock outstanding, and itsactivities will be significantly influenced by Kodax.Note: Enter debits before credits.DateJanuary 2, Year 1General JournalDebitCreditView general journalRecord entryClear entry

Working Note 1: Number of shares × Dividend per share= 72000 × 1.10 = $ 79200 Working Note 2 :…

Answered: Listed below are a few events and…

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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The following are selected account balances of Rule Corporation at the end of the current year: Debit Credit Operating Expenses $3,200 Sales Revenue $17,780 Cost of Goods Sold 8,500 Interest Expense 790 Gain on Sale of Land 590 Rule is subject to a 30% income tax rate, and shareholders own 1,200 shares of its capital stock. Required: Prepare the income statement for Rule. RULE CORPORATION Income Statement For the Year Ended December 31, Current Year Other items: Earnings per share
Denna Company's working capital accounts at the beginning of the year follow: Cash $ 50,000 Marketable securities $ 30,000 Accounts receivable, net Inventory Prepaid expenses Accounts payable $ 10,000 $ 150,000 $ 30,000 $ 20,000 During the year, Denna Company completed the following transactions: Notes due within one year Accrued liabilities x. Paid a cash dividend previously declared, $12,000. a. Issued additional shares of common stock for cash, $100,000. b. Sold inventory costing $50,000 for $80,000, on account. c. Wrote off uncollectible accounts in the amount of $10,000, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, $15,000. e. Paid accounts payable, $50,000. f. Borrowed cash on a short-term note with the bank, $35,000. g. Sold inventory costing $15,000 for $10,000 cash. h. Purchased inventory on account, $60,000. i. Paid off all short-term notes due, $30,000. j. Purchased equipment for cash, $15,000. k. Sold marketable securities costing…
Landisville Company started the year with $60000 in its Common Stock account and a credit balance in Retained Earnings of $50000. During the year, the company earned net income of $50000 and declared and paid $20000 of dividends. In addition, the company sold additional common stock amounting to $28000. As a result, the amount of its retained earnings at the end of the year would be O $160,000. O $ 78,000. $132,000. $ 80,000.
Financial Leaming Systems has 3.1 million shares of common stock outstanding and 117,066 shares of preferred stock. (The preferred pays annual cash dividends of $4.65 a share, and the common pays annual cash dividends of 26 cents a share) Last year, the company generated net profit (after taxes) of $7.627.939. The company's balance sheet shows total assets of $80 million, total liabilitios of $30 million, and $5 million in preferred stock. The firm's common stock is currently trading in the market at $46.72 a share. a. Given the preceding information, find the EPS, P/E ratio, and book value per share b. What will happen to the price of the stock if EPS rises to $3.38 and the P/E ratio stays where it is? What will happen if EPS drops to $1.39 and the P/E doesn't change? c. What will happen to the price of the stock if EPS rises to $3.38 and the P/E jumps to 28.8 times eamings? d. What will happen if both EPS and the P/E ratio drop-to $1.39 and 12.1 times earnings, respectively? e.…
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $5 stock, $50 par $182,000 Common stock, $12 par $163,800.00 Income before income tax was $342,000, and income taxes were $50,800 for the current year. Cash dividends paid on common stock during the current year totaled $43,680. The common stock was selling for $160 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio fill in the blank 1 times b. Earnings per share on common stock $fill in the blank 2 c. Price-earnings ratio fill in the blank 3 d. Dividends per share of common stock $fill in the blank 4 e. Dividend yield
During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling $0.25 per share. By what amount does contributed capital increase as a result of these events? $22,500 $750 $21,750 $22,125
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company. Issued 800,000 shares of $5-par-value common stock for $400,000 in cash. Borrowed $200,000 from Oglesby National Bank and signed a 8% note due in three years. Incurred and paid $160,000 in salaries for the year. Purchased $301,000 of merchandise inventory on account during the year. Sold inventory costing $205,000 for a total of $250,000, all on credit. Paid rent of $44,000 on the sales facilities during the first 11 months of the year. Purchased $60,000 of store equipment, paying $18,000 in cash and agreeing to pay the difference within 90 days. Paid the entire $42,000 owed for store equipment and $227,000 of the amount due to suppliers for credit purchases previously recorded. Incurred and paid utilities expense of $15,000 during the year. Collected $221,000 in cash from customers during the year for credit sales previously recorded. At year-end, accrued $16,000 of…
The balance sheet for Seuss Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (20-year term) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000, and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year. Required: Determine each of the following: Round to one decimal place except earnings per share and dividends per share, which should be rounded to two decimal places. a. Times interest earned times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield %
Ecker Company reports $1,400,000 of net income and declares $196,000 of cash dividends on its preferred stock for the year. At year- end, the company had 350,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders? Net income To preferred stockholders Net income available to common stockholders 2. What is the company's basic earnings per share (EPS)? Basic Earnings per Share Choose Numerator: Choose Denominator: Basic Earnings per Share Basic earnings per share
Kelley Company reports $1,875,000 of net income and declares $262,500 of cash dividends on its preferred stock for the year. At year-end, the company had 390,000 weighted-average shares of common stock. 1. What is the company's basic earnings per share (EPS)? 2. In the prior year, Kelley had a basic earnings per share (EPS) of $3.93. Did Kelly improve its earnings per share (EPS) in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the company's basic earnings per share (EPS)? Basic earnings per share Choose Numerator: I Choose Denominator: Net income available to common stockholders Weighted-average outstanding shares = Basic earnings per share
Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 27,000 $ 43,800 Accounts receivable $ 48,000 $ 41,300 Inventory $ 45,100 $ 48,000 Current assets $ 120,100 $ 133,100 Total assets $ 312,000 $ 263,800 Current liabilities $ 49,500 $ 34,500 Total liabilities $ 82,000 $ 73,800 Common stock, $1 par value $ 105,000 $ 105,000 Total stockholders’ equity $ 230,000 $ 190,000 Total liabilities and stockholders’ equity $ 312,000 $ 263,800 This Year Sales (all on account) $ 580,000 Cost of goods sold $ 336,400 Gross margin $ 243,600 Net operating income $ 49,500 Interest expense $ 3,000 Net income $ 32,550 6. What is the book value per share at the end of this year?
Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Balance Beginning Balance Cash $ 27,000 $ 43,800 Accounts receivable $ 48,000 $ 41,300 Inventory $ 45,100 $ 48,000 Current assets $ 120,100 $ 133,100 Total assets $ 312,000 $ 263,800 Current liabilities $ 49,500 $ 34,500 Total liabilities $ 82,000 $ 73,800 Common stock, $1 par value $ 105,000 $ 105,000 Total stockholders’ equity $ 230,000 $ 190,000 Total liabilities and stockholders’ equity $ 312,000 $ 263,800 This Year Sales (all on account) $ 580,000 Cost of goods sold $ 336,400 Gross margin $ 243,600 Net operating income $ 49,500 Interest expense $ 3,000 Net income $ 32,550 3. What are the dividend payout ratio and the dividend yield ratio?

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