Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) Common Stock ($5 par, 500,000 shares authorized) Additional Paid in Capital-Preferred accounts of a corporation on January 1, 2022, were as follows: Additional Paid in Capital-Common Retained Earnings 0000 $35,000 750,000 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750. Issued 10,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $212,000 and the stock was trading at $20.25 $4,470,350 $4,468,850 $4,533,350 $4,502,550 $4,467,350 205,800 2,220,000 857,000 Jan. 2 Feb. 21 share. Mar. 21 Sold 1,000 shares of treasury stock-common for $24 per share Nov. 14 Issued 500 shares of preferred stock for $36,000. Dec. 31 stockholders of record as of December 20. There are no dividends in arrears. Determined that net income for the year was $226,000. Dividends were declared and paid during December. These dividends included a 50.20 per share dividend to comm What is total stockholder's equity as of December 31, 20227

Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) Common Stock ($5 par, 500,000 shares authorized) Additional Paid in Capital-Preferred accounts of a corporation on January 1, 2022, were as follows: Additional Paid in Capital-Common Retained Earnings 0000 $35,000 750,000 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750. Issued 10,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $212,000 and the stock was trading at $20.25 $4,470,350 $4,468,850 $4,533,350 $4,502,550 $4,467,350 205,800 2,220,000 857,000 Jan. 2 Feb. 21 share. Mar. 21 Sold 1,000 shares of treasury stock-common for $24 per share Nov. 14 Issued 500 shares of preferred stock for $36,000. Dec. 31 stockholders of record as of December 20. There are no dividends in arrears. Determined that net income for the year was $226,000. Dividends were declared and paid during December. These dividends included a 50.20 per share dividend to comm What is total stockholder's equity as of December 31, 20227

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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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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.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
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?
Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
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
Authorized stock represents the: number of shares that are currently held by stockholders. number of shares that have been sold. number of shares that have been repurchased by the corporation. maximum number of shares that can be issued.
The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows: Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) Common Stock ($5 par, 500,000 shares authorized) Additional Paid in Capital - Preferred Additional Paid in Capital - Common Retained Earnings $28,000 600,000 164,640 1,776,000 685,600 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity: Jan. 2 Purchased 2,000 shares of its own common stock to add to the Treasury at a cost of $43,000. Feb. 21 Issued 8,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $169,600 and the stock was trading at $20.25 per share. Mar. 21 Sold 800 shares of treasury stock - common for $24 per share. Nov. 14 Issued 400 shares of preferred stock for $28,800. Dec. 31 Determined that net income for the year was $180,800. Dividends were declared and paid during December. These dividends included a…
The Stockholder’s Equity accounts of a corporation on January 1, 2022, were as follows: Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) $49,000 Common Stock ($5 par, 500,000 shares authorized) 1,050,000 Additional Paid in Capital – Preferred 288,120 Additional Paid in Capital – Common 3,108,000 Retained Earnings 1,199,800 During 2022, the corporation had the following transactions and events relating to its Stockholders Equity: Jan. 2 Purchased 3,500 shares of its own common stock to add to the Treasury at a cost of $75,250. Feb. 21 Issued 14,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $296,800 and the stock was trading at $20.25 per share. Mar. 21 Sold 1,400 shares of treasury stock – common for $24 per share. Nov. 14 Issued 700 shares of preferred stock for $50,400 Dec. 31 Determined that net income for the year was $316,400. Dividends were declared and paid during December. These dividends…
The shareholders’ equity section of Corporation’s statement of financial position as of December 31, 2019 is shown below:Ordinary share capital (P5 par, 250,000 shares authorized,137,500 shares issued and outstanding) P 687,500Share premium 275,000 Total paid-in capital P 962,500Unappropriated retained earnings 667,500Appropriated retained earnings 250,000Total retained earnings 917,500Total shareholders’ equity P1,880,000Buenas had the following shareholders’ equity transactions during 2020:Jan 15 Completed the building renovation for which P250,000 of retained earnings had been restricted. Paid the contractor P242,500, all of which is capitalized.Mar 3 Issued 50,000 additional ordinary shares for P8 per share.May 18 Declared a dividend of P1.50 per share to be paid on July 31, 2020 to shareholders of record on June 30, 2020.June 19 Approved additional building renovation to be funded internally. The estimated cost of the project is P200,000 and retained earnings are to be restricted…
The stockholders' equity accounts of Martinez Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,000 shares of common stock for $30,000. Mar. 20 Oct. 1 Nov. 1 Paid the dividend declared on October 1. Dec. 1 $300,000 1,000,000 15,000 480,000 689,000 40,000 Dec. 31 Purchased 1,000 additional shares of common treasury stock at $8 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022. Paid the dividend declared on December 1.
The following items were shown on the balance sheet of Westwind Corporation on December 31, 2020: Stockholders’ Equity Paid-In Capital Capital Stock Common stock, $5 par value, 400,000 sharesauthorized; ______ shares issued and ______ outstanding $1,850,000 Additional paid-in capital In excess of par 165,000 Total paid in capital 2,015,000 Retained Earnings 750,000 Total paid-in capital and retained earnings 2,765,000 Less: Treasury stock (18,000 shares) 180,000 Total stockholders’ equity $2,585,000 Complete the following statements. (a) The number of shares of common stock issued was shares (b) The number of shares of common stock outstanding was shares (c) The sales price of the common stock when issued was $ (d) The cost per share of the treasury stock was $ per share (e) The average…
Listed below are the transactions that affected the shareholders' equity of Branch-Rickle 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-Rickle 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%…