Q 3. At the beginning of the year, Albers, Inc., has total stockholders' equity of $840,000 and40,000 outstanding shares of a single class of capital stock.Jan 10A 5% stock dividend is declared and distributed. (Market price, $20 per share.)The corporation acquires 2000 shares of its own capital stock at a cost of £21 per share.All 2000 shares of the treasury stock arc reissued at a price of $31,50 per share.Mar 15May 30July 31The capital stock is split 2-for-l.The board of directors declares a cash dividend of $1.10 per share. payable on January 15.Net income of $260,400 (equal to $3.10 per share) is reported for the year ended DecemberDec 15Dec 3131.Required: Compute the amount of total stockholders' equity, the number of shares of capital stockoutstanding, and the book value per share following each successive transaction.

Treasury stock refers to those stocks of the company which is purchased by an organization from its…

Answered: Q 3. At the beginning of the year,…

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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MC Qu. 11-74 Anthem Inc. issues... Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the following ways? Multiple Choice Debit Common Stock for $22,000, debit Additional Paid-in Capital for $31,978,000 and credit Cash for $32.00 million. Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million. Debit Common Stock for $22,000, debit Additional Paid-in Capital for $17,978,000 and credit Cash for $18.00 million. Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for $18.00 million and credit Cash for $18.00 million.
Question 3 (Statement of shareholders’ equity): Below is the statement of shareholder’s equity of HKU Ltd.: The following transactions happen during 20X2: (a) Issuance of ordinary shares - 800 shares @ $23 per share (b) Repurchase 600 shares of preference share at $45 per share, out of share capital (c) Issue 4 bonus ordinary shares for each 10 ordinary shares. The company has decided to capitalize 1/5 of its beginning balance of the retained profits for this bonus share issuance. (d) Net income is $70,000 for the year. Prepare the statement of shareholders’ equity for year 20X2.
1. At the current year end, Spurs Corporation declared 4,000 ordinary shares of P 100 par value in connection with a share capital dividend. The market value per share on the date of declaration was P 150. The shareholder’s equity accounts immediately before issuance of the share capital dividend shares were as follows: Ordinary share capital, P 100 par,50,000 shares authorized, 20,000 shares outstanding - P 2,000,000 Ordinary Share premium -P3,000,000 Retained earnings -P 1,500,000What amount should be reported as retained earnings immediately after the share capital dividend?a. P2,100,000b. P900,000c. P1,100,000d. P1,500,000
Rayleigh & Co. Partial Balance Sheet as at 31st December 2021 RM Common Share (RM2) RM50,000,000 Paid In Capital RM25,000,000 Retained Earning RM41,250,000 Total Net Worth RM116,250,000 The company decides to announce the 25% bonus issue to its shareholders. The shares are currently trading at RM2.50. After the bonus issue occurs, calculate the number of stock dívidends.
Use the following information for the next three (3) questions: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What total amount should be reported as share premium at year-end?
Please show your solution in good accounting form. Thank you! Book value per share The shareholders’ equity of DEF Corporation on December 31 of the current year is shown below. Dividends are in arrears for two years. 6% Preference Share Capital, ₱100 par, 10,000 authorized, issued 6,000 shares ₱ 600,000 Ordinary Share Capital No-par, ₱25 stated value, authorized 20,000 shares; issued 10,000 shares of which 1,000 shares are in the treasury 250,000 Share Premium – Ordinary, no-par 46,000 Share Premium – Preference 30,000 Accumulated Profits 132,000 Appropriated for Plant Expansion 35,000 Appropriated for Treasury Shares 30,000 Treasury Shares – ordinary no-par, 1,000 sh. at cost 30,000 Requirements: Compute for the book value per share for: Compute for the outstanding shares Compute the amount of the outstanding shares Compute the excess over par Compute for the book value per share
2
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The equity reserves of Carlo on 1 February 20X8 were as follows: Share capital Share premium Share capital ($1 shares) $43,000 Share premium $12,000Retained earnings $36,760 On 1 July 20X8, Carlo issued 2,000 shares in a bonus issue utilising the share premium account to fund the issue. On 1 November 20X8, Carlo issued 4,500 shares for $1.40 per share. What is the balance on the share capital and share premium after both share issues have taken place?

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