On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par andretained earnings of $1,180,000. The company issued 220,000 shares of common stock at $12 per share on July 1. On December 15,the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021.The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net incomefor 2020 was $515,000.(a1)Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationJuly 1CashDec. 15 くCommon StockPaid-in Capital in Excess of Par-Common StockDebit2640000Credit2200000440000

July 1: Issuance of StockStep 1: Calculate total cash received220,000 shares x $12/share =…

Answered: On January 1, 2020, Kingbird…

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 December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $150 million.Required:Compute Berclair’s earnings per share for the year ended December 31, 2021.
Marlene Co. had 300 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Marlene Co.’s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $60 per share. In recording this transaction, Marlene would: a. Debit retained earnings for $180 million. b. Credit paid-in capital—excess of par for $180 million. c. Credit common stock for $180 million. d. None of these answer choices correct.
On January 1, 2022, NYC Co. had 1,191,000 shares of its $12 par value common stock outstanding. On March 1, NYC Co. sold an additional 2,382,000 shares for $48 per share. The company issued a 15% stock dividend on May 1. On August 1, NYC Co. repurchased 715,000 shares of its stock. On November 1, 1,072,500 shares were sold for $ 50 per share. What is the weighted- average number of shares outstanding for 2022? (NIE ) 4,129,067 3,175,733 3,533,233 3,771,567 Under U.S. GAAP, when can companies record a change in estimate? (RE&CF 1) Only when FASB has issued a new rule that required the change Only to correct an error in previously issued financial statements Companies should not record these changes due to the confusion it causes investors. Only when the company can justify the change as preferable to current treatment
The stockholders' equity of Bonita Industries at July 31, 2021 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 170000 shares $3400000 Paid-in capital in excess of par 156000 Retained earnings 642000 $4198000 On August 1, 2021, the board of directors of Bonita declared a 16% stock dividend on common stock, to be distributed on September 15th. The market price of Bonita's common stock was $68 on August 1, 2021, and $74 on September 15, 2021. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend? a. $1849600. b. $1020000. c. $2012800. d. $1305600.
On January 1, 2022, Skysong, Inc. had $1,190,000 of common stock outstanding that was issued at par and retained earnings of $749,000. The company issued 43,000 shares of common stock at par on July 1 and earned net income of $395,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2022, for the following two independent assumptions. (Credit account titles are automatically indented when 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.) (a) (b) No. Account Titles and Explanation (a) Par value is $10 and market price is $15. Par value is $5 and market price is $8. (b) Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock Debit 277,425 147,960 Credit 184,950 277,425 92,475 332,910
At January 1, 2020, Teal Company’s outstanding shares included the following. 276,000 shares of $50 par value, 6% cumulative preferred stock 940,000 shares of $1 par value common stock Net income for 2020 was $2,512,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020.On April 1, 2020, 408,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 112,000 shares of common stock were purchased for $21 per share and held as treasury stock.Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $
At January 1, 2020, Wildhorse Company's outstanding shares included the following. 300,000 shares of $50 par value, 7% cumulative preferred stock 959,000 shares of $1 par value common stock 4 Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020. On April 1, 2020, 476,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 102,000 shares of commor stock were purchased for $20 per share and held as treasury stock. Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share Asintance Iss
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Rodgers Corporation reported basic earnings per share of $1.25 for the year ended December 31, 2019. Rodgers had 8,000 shares of cumulative, nonconvertible $100 par, 12% preferred stock outstanding during all of 2019. The company began 2019 with 200,000 shares of common stock outstanding and ended the year with 400,000 share of common stock outstanding, due to issuing 200,000 shares on July 1, 2019. Net Income for 2019?
The following information is available for ConocoPhillips on December 31, 2022: Common Stock, $1.75 par, 400,000 shares authorized Additional Paid in Capital - Common Stock Retained Earnings Total Stockholders' Equity During 2023, ConocoPhillips completed these transactions (in chronological order): 1) Declared and issued a 2.0% stock dividend on the outstanding stock. At that time, the stock was quoted at a market price of $20 per share. 2) Issued 2,400 shares of common stock at the price of $18 per share. 3) Net Income for the year was $410,400. Determine the ending balance in the Additional Paid in Capital - Common Stock account on December 31, 2023: Select one: O O $651,000 840,000 756,000 $2,247.000 a. $1,014,780 b. $1,025,000 c. $1,032,000 d. $975,780 e. $879,000 4
On January 1, 2020, Windsor Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,040,000. The company issued 235,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Windsor Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $535,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 19 Dec 15 Debit
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: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. 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. b. 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 $2.8 million, but were purchased two years previously for $2.4 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. c. On July 12, 2022, the corporation declared and distributed a 4 %…

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