Pharoah Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations.$36,000 net loss 20202018 $283.000 net loss2019At December 31, 2020, Pharoah Inc. capital accounts were as follows.9% cumulative preferred stock, par value $100; authorized, issued.and outstanding 5,300 sharesCommon stock, par value $1.00; authorized 1,000,000 shares;issued and outstanding 758,000 shares$746,000 net incomeBook value per share $$530,000$758,000Pharoah Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Pharoah beganoperations. The state law permits dividends only from retained earnings.(a) Compute the book value of the common stock at December 31, 2020. (Round answers to 2 decimal places, e.g. $38.50.)Book value per share $(b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of$107 per share. (Round answers to 2 decimal places, e.g. $38.50.)

The term book value refers to the worth of a company as shown in its financial statements books, or…

Answered: Pharoah Inc. began operations in…

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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Rollers company is incorporated on January 1, 2018. Company is authorized to issue 160,000 shares of $6 par value. Following transactions related to stockholder's equity is given below: 16,000 @ $8 per share 32,000 @ $9 per share $160,000 S80,000 3,500 shares @ $11 per share Shares issued Shares issued Net income Dividend paid Treasury stock purchased The balance of stockholder's equity at end of year 2018 is: a. $416,000 b. $457,500 c. $576,000 d. $489,500
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued $ 250,000 Paid-in capital—excess of par, common 500,000 Paid-in capital—excess of par, preferred 100,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2021, Fascom Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital—excess of par.) The fair value of the stock was $4 on this date. July 18: Declared and distributed a 3%…
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 100,000 shares authorized,45,000 shares issued and outstanding $ 1,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders' equity $ 1,585,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $19 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share. Sept. 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the…
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.
At the end of 2019, Haley Corporation had the following equity accounts and balances: Common stock, $10 par $800,000 Additional paid-in capital-common stock 200,000 Retained earnings 279,000 During 2020, Haley engaged in the following transactions involving its equity accounts: a. Sold 5,000 shares of common stock for $19 per share. b. Sold 1,200 shares of 12%, $50 par preferred stock at $75 per share. c. Declared and paid cash dividends of $22,000. d. Repurchased 1,000 shares of treasury stock (common) for $24 per share. e. Sold 300 of the treasury shares for $26 per share. Required: 1. Prepare the journal entries for Transactions a through e. 2. Assume that 2020 net income was $123,700. Prepare a statement of stockholders' equity at December 31, 2020.
1. Yellow Corporation had the following stockholders' equity accounts on December 31, 2020. Common Stock ($8 par value, 120,000 shares authorized, $ 320,000 40,000 shares issued and outstanding) Paid-in-Capital in Excess of Par - Common Stock $ 2,900,000 Retained Earnings $ 3,500,000 The following were transactions that occurred during 2021: 20-Feb Declared a $4 cash dividends per share on common stock 3-Mar Record date for cash dividends declared on 20 Feb 19-Mar Paid cash dividends 28-Apr Issued 15,000 shares of common stock for $16 per share 5-May Declared a $3 cash dividends per share on common stock 9-Jun Record date for cash dividends declared on 5 May 17-Jul Paid cash dividends 8-Aug Issued 23,500 shares of common stock for $20 per share 7-Sep Declared a $2 cash dividends per share on common stock 9-Oct Record date for cash dividends declared on 7 September 5-Nov Paid cash dividends 31-Dec Determined that net income for the year was $650,000 Instructions: 1. Journalize the…
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding - Paid in capital in excess of par value, common stock ...$3,000,000 ....400,000 900.000 -Retained earnings.......... Total $4,300,000 The Corporation completed the following transactions in 2021. - Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. Mar. 01, Purchased 30,000 shares of its own common for $15 per share. Mar. 31, Paid the cash dividend declared on Jan. 10. - May 01, Sold 10,000 of its treasury shares at $15 cash per share. - Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. Nov. 01, Distributed stock dividends declared on Sep. 30. . Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for…
On January 1, 2021, Fascom had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 10,000 shares outstanding Retained earnings Treasury stock, at cost, 5,000 shares During 2021, Fascom Inc. had several transactions relating to common stock. $ 250,000 500,000 100,000 1,000,000 2,000,000 25,000 January 15: Declared a property dividend of 100,000 shares of Slowdown Company (book value $10 per share, fair value $9 per share). February 17: Distributed the property dividend. April July December 10: A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Fascom chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. 18: Declared and distributed a 3% stock dividend on outstanding common stock. The fair value is $5 per…
Pronghorn Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $236,000 net loss At December 31, 2020, Pronghorn Inc. capital accounts were as follows. 2019 $37,000 net loss 7% cumulative preferred stock, par value $100; authorized, issued, and outstanding 4,500 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 774,000 shares Book value per share $ 2020 Book value per share $ $774,000 net income Pronghorn Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Pronghorn began operations. The state law permits dividends only from retained earnings. (a) Compute the book value of the common stock at December 31, 2020. (Round answers to 2 decimal places, e.g. $38.50.) $450,000 $774,000 (b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $105 per share. (Round answers…
Holiday Corporation had the following stockholders' equity amounts on their balance sheet on December 31, 2020 (the end of their 8th year of business): Common Stock, $10 par, 1,000,000 shares authorized, shares outstanding shares Issued, $2,300,000 Paid in Capital in Excess of Par- Common ৪,400,000 10,000 Paid in Capital from Treasury Stock Accumulated Other Comprehensive Income 160,000 Retained Earnings 5.321.000 Total Stockholders' Equity $16,191,000 During 2021, Holiday completed the following transactions: Sold 24,000 shares of common stock for $52 per share in cash. Purchased 12,000 shares of our own company stock for cash when the price March 1 June 1 dropped to $47 per share. Holiday plans to resell the shares when the price goes back up. November 1 Resold 3,000 of the shares from June 1 at $53 per share December 1 Declared a $0.50 per share cash dividend December 31 Reported $600,000 of net income Answer the following questions. Please show and label your work. a. How many…
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $500,000. For 2021, basic earnings per common share amounted to:
The books of Oriole corporation carried the following account balances as of December 31, 2020. Cash $210,000. preferred stck(cumulative, nonparticipating,$50 par) $310,000. common stock (non-par value, 284,000 shares issued) $1,420,000. Paid-in capital in excess of par -preferred stock $157,000. Treasury stock (common 2,900 shares at cost). Retained earnings $ 106,100. The company decided not to pay any dividend in 2020. The board of directors, at their annual meeting on December 21,2021, declared the following: The current year dividend shall be 6% on the preferred and $0.30% per share on the common. The dividend in arrears shall be paid by issuing 1,550 shares of treasury stock. At the date of deceleration, the preferred is selling at $80 per shares , and the common at $12 per shares . Net income for 2021 is estimated at $81,400. (a) prepare the journal entries required for the dividend declaration and payment assuming that they occur simultaneously. ( credit amount title are…

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