On December 31, 2023, Rulz Corporation's balance sheet reported the following. Common stock, $1 par $ 1,000,000 4,300,000 Paid-in capital-excess of par 5,310,000 (690,000) Retained earnings Treasury stock (23,000 shares at cost) During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. View transaction list Journal entry worksheet

On December 31, 2023, Rulz Corporation's balance sheet reported the following. Common stock, $1 par $ 1,000,000 4,300,000 Paid-in capital-excess of par 5,310,000 (690,000) Retained earnings Treasury stock (23,000 shares at cost) During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. View transaction list Journal entry worksheet

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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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.
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
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?
Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
Ritz Company had the following shares outstanding and Retalned Earnings at December 31, 2020: Common shares (500,000 outstanding shares) Preferred shares (8 percent; 21,000 outstanding shares) Retained earnings $500,000 210,000 900,000 On December 31, 2020, the board of directors Is considering the distribution of a cash dividend to the common and preferred shareholders. No dividends were declared during 2018 or 2019. Three Independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of 2020 dividends would be $30,000. Case B: The preferred shares are cumulative; the total amount of 2020 dividends would be $30,000. Dividends were not in arrears prior to 2018. Case C: Same as Case B, except the amount is $75,000. Required: 1-a. Compute the amount of dividends, In total, payable to each class of shareholders for each case. Case A Case B Case C Preferred Common Total 1-b. Compute the amount of dMdend per share, payable to each class of shareholders for…
Presented below is information related to Alligator Corporation for 2019. 1. On September 4, Alligator Corporation sold the 1,000 treasury shares that they had purchased on August 10 at $22 per share. The purchase price of the shares was $25 per share. There is no previous balance in the paid-in-capital from treasury stock account (journalize both purchase and resale).2. On September 20, Alligator Corporation declared & issued a 20% stock dividend on the outstanding common stock when the stock is selling for $50 per share. 3. On December 31, a 3-for-1 stock split is declared and issued.4. On December 31, Alligator Corporation declared a $0.90 per share liquidating dividend on the common stock outstanding. Journalize the following transactions from the perspective of Alligator Corporation.
National Supply's shareholders' equity included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 5 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: $ 5,000,000 25,000,000 74,500,000 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2024 Reacquired 160,000 shares at $8 per share. February 17, 2025 Reacquired 160,000 shares at $5.50 per share. November 9, 2026 Sold 95,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $13 million in 2024, $14 million in 2025, and $15 million in 2026. No dividends were paid during…
Kelbrooklimited provided the following information.1.The issue share capital consists of 180000 ordinary shares of $0.50 each2. On 1 jan 2019: general reserve is $ 4,000. Retained earnings is $ 5,5003. The profit for the year ended 31 December 2019 was $ 9,000. $ 2000 of this was transferred to the general reserve .4. An interim dividend of $4,500 was paid during the year. No dividends were proposed at the end of the Required Prepare Statement of changes and Equity Account
On January 3, 2025, SY Company has 200,000, P10 par value ordinary shares outstanding having a market price of P15. The shares were originally issued at P14. The total undistributed accumulated net earnings were P4,000,000. On January 4, 2025, SY company declared a 2 for 1 stock split. Compute the balance of Retained earnings after the Stock Split. Compute the balance of Total Contributed Capital after the Stock Split. Assuming that the 2 for 1 stock split was a reverse split (split down), the Total stockholders Equity after the split is
At December 31, 2020, the balance sheet of Meca International Included the following shareholders' equity accounts: ($ in millions) $ 60 300 410 Shareholders' Equity Common stock, 60 million shares at $1 par excess of par Paid-in capital Retained earnings Required: Assuming that Meca International views Its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions (1.e.. 10,000,000 should be entered as 10).) 1. On February 12, 2021, Meca reacquired 1 million common shares at $13 per share. 2. On June 9, 2022, Meca reacquired 2 million common shares at $10 per share. 3. On May 25, 2023, Meca sold 2 million treasury shares at $15 per share. Determine cost as the weighted-average cost of treasury shares. 4. For the previous transaction, assume Meca determines the cost of treasury shares by the…