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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15. The following data were taken from the accounts of Miami Heat Corporation as at December 31, 2019: Total net income since incorporation P 840,000 Proceeds from sale of donated shares 90,000 Scrip dividends declared payable on Jan. 5, 2020 65,000 Ordinary share capital dividend distributable 60,000 Excess of proceeds over cost from sale of treasury shares What should be the balance of the Retained Earnings as of December 31, 2019? ______________
Shaina company reported the following shareholders’ equity on December 31, 2019:Preference share capital, 10% cumulative and non participating, P100 par, 10,000 shares P1,000,000Ordinary share capital, P100 par, 20,000 shares 2,000,000Subscribed ordinary share capital, 10,000 shares 1,000,000Subscriptions receivable 250,000Share Premium 500,000Retained Earnings 1,200,000Treasury ordinary shares, 5,000 at cost 400,000 The preference dividends are in arrears for 2017, 2018 and 2019. a. What is the book value per ordinary share? b. What is the book value per preference share?
Selected information regarding the accounts of Infinity Minerals Corp. follows: Common shares, unlimited authorized, 51,000 shares issued and outstanding, December 31, 2022 Common dividends declared and paid during 2023 Cumulative effect of change in accounting estimate (net of $7,200 tax) Profit for the year ended December 31, 2023 Preferred dividends declared and paid during 2023 Preferred shares, $4.90 non-cumulative, 15,100 shares orized, issued, and outstanding, December 31, 2022 Retained earnings, December 31, 2022 (as originally reported) Balance, January 1 Balance, December 31 Next Prepare a statement of changes in equity for the year ended December 31, 2023, assuming 7,100 common shares were issued during 2023 at an average price of $21.94 per share and that no preferred shares were issued in 2023. (Negative answers should be indicated by a minus sign.) INFINITY MINERALS CORP. Statement of Changes in Equity For Year Ended December 31, 2023 Preferred Shares $ $1,075,000 121,000…
a. 1,280,800b. 1,340,800c. 1,385,800d. 1,445,800e. answer not given
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 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 following shareholders’ equity accounts are included in the statement of financial position of Chicken Wings Co. on December 31, 2020.· Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding)- P6,000,000· Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding)- P3,000,000· Share premium- P3,750,000· Retained earnings- P3,500,000During 2021, Chicken Wings took part in the following transactions concerning equity.· Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2020.· Purchased 81,000 shares of its own outstanding ordinary shares for P40 per share.· Reissued 21,000 treasury shares for land valued at P900,000.· Issued 15,000 preference shares at P105 per share.· Declared a 10% stock dividend on the outstanding ordinary shares when the shares are selling for P45 per share.· Issued…
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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