BP14-9B Sarnia Hardware Ltd. reported the following shareholders' equity on December 31,2019:Contributed capitalPreferred shares, $0.50 cumulative, convertible to common on a 2-for-1basis, 50,000 shares authorized, 20,000 shares issued and outstanding $ 55,000Common shares, unlimited number of shares authorized, 50,000 sharesissued and outstandingTotal contributed capitalRetained earningsTotal shareholders' equity62,500117,500110,000$227,500 The following information is available for the year ended December 31, 2020:..................... $212,50095,00065,0004,0002,500Sales for the year.Cost of goods sold.Operating expenses....Income from discontinued operations..Loss on sale of discontinued operations...Required1. Record the following transactions in the general journal. Explanations are notrequired.Mar. 7Apr. 1Jun. 6Aug. 5Sep. 15Dec. 31Declared a cash dividend of $12,500, payable on April 1 to theshareholders of record on March 15. Indicate the amount payable toeach class of shareholder.Paid the cash dividend declared on March 7.Declared a 5 percent stock dividend on the common shares,distributable on August 5 to the shareholders of record on July 4.The market value of the shares was $1.50 per share.Distributed the common shares dividend declared on June 6.Received notification from the Canada Revenue Agency that SarniaHardware Ltd. had made an error in filing its 2019 taxes. Thereassessment showed that the company had reported and overpaid$4,000 in taxes.Close the Income Summary account, assuming the income tax onall types of income is 40 percent.2. Prepare a combined multi-step statement of income and retained earnings forthe year ended December 31, 2020. Use a three-column format to break out theinformation for discontinued operations. Include earnings per share information.

Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…

Answered: P14-9B Sarnia Hardware Ltd. reported…

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 balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019. Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2019 Contributed capital: Preferred shares, $2.3 cumulative, unlimited shares authorized; 22,000 shares issued and outstanding Common shares, unlimited shares authorized; 77,000 shares issued and outstanding Total contributed capital Retained earnings Total equity 394,000 737,000 $1,131,000 380,000 $1,511,000 2020 Jan. 1 Sold 32,000 common shares at $10.84 per share. 5 $ In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts: The directors declared a total cash dividend of $233,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2018. and 2019. All of the preferred shares had been issued during 2018. Feb. 28 Paid the dividends declared on January 5. July 1 Sold…
What is the total balance of RETAINED EARNINGS account as of December 31, 2020
The equity section of JUJI Corporation as of December 31, 2018, was as follows: Share capital—ordinary, par value P20; authorized 20,000 shares; issued and outstanding 10,000 shares P200,000 Share premium—ordinary 300,000 Retained Earnings 750,000 1,250,000 On March 1, 2019, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2019, the fair value of the share was P60 per share. For the two months ended February 28, 2019, JUJI sustained a net loss of P100,000. What amount should JUJI report as retained earnings as of March 1, 2019?
The balance sheet for Tactex Controls Inc., provincially incorporated in 2021, reported the following components of equity on December 31, 2022. Tactex Controls Inc. Equity Section of the Balance Sheet December 31, 2022 Contributed capital: Preferred shares, $1.5 cumulative, unlimited shares authorized; 14,000 shares issued and outstanding $ 386,000 Common shares, unlimited shares authorized; 69,000 shares issued and outstanding 729,000 Total contributed capital $ 1,115,000 Retained earnings 372,000 Total equity $1,487,000 In 2023 and 2024, the company had the following transactions affecting shareholders and the equity accounts: 2023 Jan. 1 Sold 24,000 common shares at $10.04 per share. 5 The directors declared a total cash dividend of $225,000 payable on Feb. 28 to the Feb. 5 shareholders of record. Dividends had not been declared for the years 2021 and 2022. All of the preferred shares had been issued during 2021. Feb. 28 Paid the dividends declared on January 5. July 1 Sold…
On October 1, 2021, ATN Corporation, a newly formed company had the following shares issued and outstanding: Preference shares, P50 par, 6,000 shares originally issued at P100; Ordinary share P20 par,20,000 shares originally issued at P60. ATN shareholders' equity should report preference share capital, ordinary share capital and paid-in capital in excess of par, respectively at: a.) P600,000, P1,200,000 0 b.) P300,000, P1,200,000 P300,000 c.) P300,000, P400,000 P1,100,000 d.) P600,000, P400,000 P800,000 SHOW COMPLETE SOLUTION
3. Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share and the remaining were retired. The net income for the year is P455,700. The retirement of treasury shares has resulted in a share premium of how much?
The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary Share Capital, 100,000 shares, P 10 par- P1,000,000 Ordinary Share Premium- P500,000 Retained Earnings- P800,000 During October, 2020, the corporation had the following transactions: > Oct. 5- Reacquired 40,000 shares of its own Ordinary Shares for P 520,000. > Oct. 15- Sold 20,000 Treasury Shares at P 15 per share > Oct. 25- Sold another 10,000 Treasury shares for P 70,000. What is the balance of the Retained Earnings after the above transactions?
Kline Manufacturing has the following labor costs: Factory-Gross wages $500,000 Factory-Net wages 420,000 Employer Payroll Taxes Payable The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for 50,000
Denia Corporation Balance Sheet (partial) At December 31, 2020 Paid-in Capital Common Stock, $9 par value, 3,000,000 shares authorized, $10,530,000 shares issued, and shares outstanding Additional Paid-in Capital in Excess of Par $4,680,000 Total Paid-in Capital $15,210,000 Retained Earnings $11,380,000 Total Shareholders’ Equity $26,590,000 Instructions: Complete the following statements and show your calculations! a) The number of shares of common stock issued and outstanding was b) The average sales price of the common stock when issued was $
See image. Choices: a. P780,000 b. P720,000 c. P1,440,000 d. P560,000

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