QS 13-10 Issuance of preferred shares in exchange for land LO³ On October 3, 2014, Allarco Inc. issued 4,000 of its preferred shares for cash of $15 each. On November 19 the company issued 3,400 preferred shares in exchange for land with a fair market value of $52,480. a. Prepare the entries for October 3 and November 19. b. Calculate the average issue price per preferred

QS 13-10 Issuance of preferred shares in exchange for land LO³ On October 3, 2014, Allarco Inc. issued 4,000 of its preferred shares for cash of $15 each. On November 19 the company issued 3,400 preferred shares in exchange for land with a fair market value of $52,480. a. Prepare the entries for October 3 and November 19. b. Calculate the average issue price per preferred

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Exercise 3 – 7 (Issuance of Share Capital on a Subscription Basis) The Sales Co. was organized on June 1, 2019, with an authorized capital of 400,000 ordinary shares with a par value of P20. The following are selected transactions of the corporation during September: Sept. 1 Received subscription for 120,000 shares at P25 per share. A down payment of 40% was received from the subscribers. The balance is due in three equal installments. 8 Issued 23,000 shares in exchange for land valued at P750,000. 10 Received the first installment from the subscribers. 20 Received the second installment due from the subscribers. 30 Received the final installment from all subscribers and a share of stock was issued. Instructions: Prepare journal entries to record the preceding transactions.
k Exercise 11-19A (Algo) Using the P/E ratio LO 11-9 Lake Incorporated and River Incorporated reported net incomes of $164,000 and $124,000, respectively, for the most recent fiscal year. Both companies had 40,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $57, while River's sold for $61 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
j
Part A P 14-12 Quas In late 2022, the Nicklaus Corporation was formed. The corporate charier authorizes the issuaee of 5,000,000 ordinary shares carrying a $1 par value, and 1,000,000 preference shares of $5 m Various reore shareholders value, non-cumulative, and non-participating. On January 2, 2022, 3,000,0000 ordinary shares ae equity topics: ISsued in exchange for cash at an average price of $10 per share. Also on January 2, all 1,000.000 compre- hensive (bas App OA 1- preference shares are issued at S20 per share. O LO14-1 Required: 1. Prepare journal entries to record these transactions. 2. Prepare the shareholders' equity section of the Nicklaus statement of financial position us of March 31, 2023, (Assume that net profit for the first quarter of 2023 was S1,000,000.) LO14-4 through LO14-8 Part B During 2023, the Nicklaus Corporation participated in three treasury shares transactions: On June 30, 2023, the corporation reacquires 200,000 shares for the treasury at a price of $12…
Exercise 13-3 Accounting for par, stated, and no-par stock issuances LO P1 8 Rodriguez Corporation issues 9,000 shares of its common stock for $177,100 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $18 par value. 2. The stock has neither par nor stated value. 3. The stock has a $9 stated value. View transaction list Journal entry worksheet Record the issue of 9,000 shares of $9 stated value common stock for $177,100 cash. Note: Enter debits before credits. General Journal Transaction 3 Clear entry Record entry Debit Credit View general journal
INTERMEDIATE ACCOUNTING 2 Chapter 15: Earnings per Share
EX 14-1 Effect of financing on earnings per share Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 5% (issued at face amount) oliqms Preferred $2.00 stock, $100 par Common stock, $25 par $6,000,000 3,000,000 5,000,000 OBJ. 1 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $900,000, (b) $1,100,000, and (c) $1,500,000.
Don't give answer in image format
EX 13-22 of operations: Name Number of Shares Cost Dust Devil, Inc. Gale Co. Whirlwind Co. Total 1,900 $ 81,700 850 68,000 ol) nis nooni ra 2,850 114,000 $263,700 The market price per share for the available-for-sale security portfolio on December 31, 2016, was as follows: Market Price per Share, Dec. 31, 2016 Dust Devil, Inc. Gale Co. Whirlwind Co. $40 75 42 a Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016. -101-sidslievs h. Describe the income statement impact from the December 31, 2016, journal entry. ises inc abnab
CHP#11_6 Dividend Distribution Ryan Corporation began business on March 1, 2016. At that time, it issued 20,000 shares of $60 par value, seven percent cumulative preferred stock and 100,000 shares of $5 par value common stock. Through the end of 2018, there had been no change in the number of preferred and common shares outstanding. Required a. Assume that Ryan declared dividends of $0 in 2016, $195,000 in 2017, and $200,000 in 2018. Calculate the total dividends and the dividends per share paid to each class of stock in 2016, 2017, and 2018. Round to two decimal places. b. Assume that Ryan declared dividends of $0 in 2016, $90,000 in 2017, and $190,000 in 2018. Calculate the total dividends and the dividends per share paid to each class of stock in 2016, 2017, and 2018. Round to two decimal places.
Problem 11-15 Schuss Inc. can sell preferred shares for $74 with an estimated flotation cost of $4.00. The preferred stock is anticipated to pay $10 per share in dividends. a. Compute the cost of preferred stock for Schuss Inc. (Round the final answer to 2 decimal places.) Cost of preferred stock% b. Do we need to make a tax adjustment for the issuing firm? O Yes O No
Exercise 11-12A Treasury stock transactions LO 11-5 Elroy Corporation repurchased 2,300 shares of its own stock for $35 per share. The stock has a par of $20 per share. A month later, Elroy resold 575 shares of the treasury stock for $43 per share. Required a. Record the two events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet < 2 Record the repurchase of own stock. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general Journal m N