Problem 1 At the beginning of current year, Kahel Company had 125,000 shares issued which included 25,000 shares held as treasury. January 1 through October 31 - 13,000 treasury shares were distributed to officers as part of a share compensation plan. November 1 - A 3-for-1 share split took effect December 1 - the entity purchased 5,000 of its own shares to discourage an unfriendly takeover. These shares were not retired. Required: 1. Prepare journal entries.

Problem 1 At the beginning of current year, Kahel Company had 125,000 shares issued which included 25,000 shares held as treasury. January 1 through October 31 - 13,000 treasury shares were distributed to officers as part of a share compensation plan. November 1 - A 3-for-1 share split took effect December 1 - the entity purchased 5,000 of its own shares to discourage an unfriendly takeover. These shares were not retired. Required: 1. Prepare journal entries.

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 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...

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Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?
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DDD Company had the following ordinary share transactions for the current year: January 1 Beginning balance, 120,000 shares, P50 par June 1 Issued 12,000 shares at P60 per share September 30 Purchased 24,000 shares at P55 per share to be held as treasury The entity reported net income of P3,630,000, after an expropriation loss of P605,000 for the current year. Questions: 1. Compute for the average shares outstanding. 2. Compute for the basic earnings per share.
41 On January 1 of the current year, ABC Company had 240,000 issued ordinary shares and 220,000 of ordinary shares outstanding. The entity had the following transactions during the year: March 1 – issued 12,000 ordinary shares March 30 – Completed a 4-for-1 share split for the ordinary shares April 1 – re-issued 18,000 of the treasury shares October 1 – re-issued 6,000 of the treasury shares What is the weighted average ordinary shares in computing for EPS?
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Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the following transactions during the current year: a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14. b. Sold 2,000 treasury shares to employees for $6 per share on January 31. c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24. d. Sold the remaining 11,000 shares from the January 14 purchase and 1,200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1. Required: 1. Prepare journal entries for each of these transactions. 2. Determine what the effect on total stockholdersâ€™ equity is for each of the four transactions.
Prepare entries to record the following selected transactions completed during the current fiscal year: Feb. 1 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. 11 Purchased 25,000 shares of the company's own stock at $44, recording the treasury stock at cost. May 1 Declared a dividend of $2.50 per share on the outstanding shares of common stock. 15 Paid the dividend declared on May 1. Oct. 19 Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55.) Nov. 12 Issued the certificates for the common stock dividend declared on October 19.
Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which includes a P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Maid Company on March 20, 2021. These dividends were declared on January 5 payable to shareholders as of February 10. Maid shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2021. The investments were designated as FVPL. 6.1 How much is initial carrying value of investment at date of acquisition? 6.2 How much should be recognized as dividend income? 6.3 Prepare the all the journal entries for the period ended 12/31/2021
Part A During its first year of operations, the A. Clem Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 103 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. January 9 Issued 30 million common shares for $14 per share. March 11 Issued 4,200 shares in exchange for custom-made equipment. A. Clem shares have traded recently on the stock exchange at $14 per share. Part B A new staff accountant for the A. Clem Corporation recorded the following journal entries during the second year of operations. A. Clem retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date General Journal ($ in millions) Debit Credit September 1 Common stock 4 Retained earnings 72 Cash 76 December 1 Cash 40 Common stock 2 Gain on sale of previously issued shares 38 Required:…
ACCOUNTING 4 ITEMS FOR 1 TO 4 ARE BASED ON THE FOLLOWING INFORMATION: During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. Ordinary share capital a. P5,569,000 b. P5,219,000 c. P5,550,000 d. P6,069,000