QS 13-3 Components of the equity section of a corporate balance sheet LO² From the following list of selected accounts for X-cell Inc., identify the equity accounts. Use "CC" for contributed capital, "RE" for retained earnings, and "X" if not an equity account. Cash Common shares Common dividend payable Deficit Preferred shares Retained earnings Preferred dividend payable Preferred shares, $5 non-cumulative

QS 13-3 Components of the equity section of a corporate balance sheet LO² From the following list of selected accounts for X-cell Inc., identify the equity accounts. Use "CC" for contributed capital, "RE" for retained earnings, and "X" if not an equity account. Cash Common shares Common dividend payable Deficit Preferred shares Retained earnings Preferred dividend payable Preferred shares, $5 non-cumulative

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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QUESTION I Below are the balances available for Delima Berhad as at 31 December 2015: Statement of Financial Position of Delima Berhad as 31 December 2015 RM 170,000,000 115,000,000 150,000,000 435,000,000 Non-current assets Current assets (except cash at hank) Cash at bank Issued share capital 100,000,000 ordinary shares Retained profits Non-current liability 50,000,000 5% redeemable preference shares Current liabilities Additional information: On 1 January 2016, the directors decided on the following matters 100,000,000 3. To redeem 5% redeemable preference shares at a premium of 10% 240,000,000 55,000,000 20,000,000 435,000,000 1. To issue bonus shares of one (1) ordinary shares for every ten (10) shares held to the existing shareholders. 2. To repurchase 2,000,000 ordinary shares at RM1.50 each for cancellation. (u 4 To issue 30,000,000 ordinary shares at RMI. The application were paid and fully subscribed Required: a) Prepare journal entries to record above transactions b) Prepare…
Decision Case 11-1 Comparing Two Companies in the Same Industry: Kellogg's and General Mills Refer to the Stockholders' Equity Section of the balance sheets of Kellogg's as of December 31, 2010, and General Mills as of May 30, 2010. Required For each company, what are the numbers of shares of common stock authorized, issued, and outstanding as of the balance sheet date? Did the balance of the Retained Earnings account of each company increase or decrease dur- ing the year? What factors can affect the Retained Earnings balance? How does the total stockholders' equity of each company compare to that of the other company? Does the difference mean that one company's stock is more valuable than the other's? Explain your answer.
LOC-6, LOC-7 PROBLEM C.7 Stockholders' Equity Section The two cases described as follows are independent of each other. Each case provides the informa- tion necessary to prepare the stockholders' equity section of a corporate balance sheet. a. Early in 2019, Wesson Corporation was formed with the issuance of 50,000 shares of capital stock at $5 per share. The corporation reported a net loss of $32,000 for 2019, and a net loss of $12,000 in 2020. In 2021 the corporation reported net income of $90,000 and declared a dividend of 50 cents per share. b. Amber Industries was organized early in 2017 with the issuance of 100,000 shares of capital stock at $10 per share. During the first five years of its existence, the corporation earned a total of $900,000 and paid dividends of 25 cents per share each year on the common stock. Instructions Prepare the stockholders' equity section of the corporate balance sheet for each company for the year ending December 31, 2021.
Question 33 ACME Incorporated had the following balances for its equity accounts on the company's audited statement of financial position at December 31, 2019: Shareholder's Equity Paid in on capital shares Preferred [8%, cumulative, 30,000 authorized, issued & outstanding $ 300,000 Common [unlimited authorized, 550,000 issued & outstanding] Contributed surplus 865,000 216,250 $ 1,381,250 Retained earnings Accumulated other comprehensive income Total shareholder's equity 432,500 216,250 $ 2,030,000 Information for 2020: Net income was Gain on disposal of bonds Dividends declared and paid on preferred shares Issued 3,000 common shares Foreign translation gain on subsidiary Comprehensive income $ 350,000 135,000 15,000 5,000 87,500 262,500 Required: Prepare ACME's statement of changes in equity at December 31, 2020 in good form.
MAD 12-5 Analyze and Compare Truist and Regions Financial Obj. 7 - Describe and illustrate the use of earnings per share in evaluating a company's profitability. Truist Financial Corp (TFC) and Regions Financial Corporation (RF) are large regional banking companies. The net income and average common shares outstanding for both companies were reported in recent financial reports as follows (in millions): Net income Preferred dividends Average number of common shares outstanding b. C. d. Truist $3,224 perspective? $196 805.1 Regions Financial a. Determine the earnings per share for each company. Round to the nearest cent. $1,582 $79 995.0 Which company appears more profitable from a total net income Which company appears more profitable from an earnings-per- share perspective? From a stockholder's perspective, is net income or earnings per share the better relative earnings measure between the two banks? The annual report (10-K) assignment for this chapter is in Appendix C: Nike Annual…
Exercise 11-13A (Algo) Recording and reporting treasury stock transactions LO 11-5 The following information pertains to JAE Corporation at January 1, Year 1: Common stock, $11 par, 14,000 shares authorized, 2,800 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $30,800 12,100 51,200 4 JAE Corporation completed the following transactions during Year 1: 1. Issued 1,150 shares of $11 par common stock for $30 per share. 2. Repurchased 160 shares of its own common stock for $27 per share. 3. Resold 50 shares of treasury stock for $28 per share. Required: a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Complete this question by entering your answers in the tabs below.…
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31, 2018. Connon stock-$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2019, the following transactions affected its stockholders' equity accounts. 2 Purchased 5,500 shares of its own stock at $15 cash per share, 5 Directors declared a 56 per share cash dividend payable on February 28 to the February 3 stockholders of record. Jan. Jan. $750,000 70,000 400,000 $1,220,000 Oct. Dec. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 2,063 of its treasury shares at $19 cash per share. Aug. 22 Sold 3,437 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…
Question 21 Treasury shares are most often reported as: A) A reduction of total shareholders' equity. B) A reduction of total paid-in capital. C) A reduction of retained earnings. D) An expense in the income statement. O A В C
ces Exercise 11-6A (Static) Accounting for cumulative preferred dividends LO 11-3 When Crossett Corporation was organized in January Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: Year 1, net loss of $35,000; Year 2, net income of $125,000; Year 3, net income of $215,000. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? b. Assume that the board of directors declares a $25,000 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Complete this question by entering your answers in the tabs below. Required A Required B Assume that the Board of directors declares a $25,000 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are…
ACCT2110 Financial Accounting Chapter 11 Stockholders' Equity Homework Problem 1. The stockholders' equity section of MaiStyle Corporation's balance sheet at December 31 is presented here. MAISTYLE CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $900,000 Common stock, no par; 750,000 shares authorized, 600,000 shares issued 1,800,000 Total paid-in capital 2,700,000 Retained earnings 1,158,000 Total paid-in capital and retained earnings 3,858,000 Less: Treasury stock (8,000 common shares) (32,000) Total stockholders' equity $3,826,000 Instructions From a review of the stockholders' equity section, answer the following questions. (a) How many shares of common stock are outstanding? (b) Assuming there is a stated value, what is the stated value of the common stock? (c) What is the par value of the preferred stock? (d) If the annual dividend on preferred stock is $36,000,…
Question 13 1.25 points Save Answer The cumulative effect of the declaration and distribution of a stock dividend on a company's balance sheet is to: O A. increase assets and stockholders' equity O B. decrease retained earnings and increase paid-in capital Oc. decrease paid-in capital and stockholders' equity O D. decrease current liabilities and stockholders' equity
QS 11-6 (Algo) Accounting for cash dividends LO P2 Prepare journal entries to record the following transactions for Emerson Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) July 15 Declared a cash dividend payable to common stockholders of $172,000. August 15 Date of record is August 15 for the cash dividend declared on July 15. August 31 Paid the dividend declared on July 15. 59:06 View transaction list ook Journal entry worksheet > 1 3 Record the declaration of a cash dividend payable to common stockholders. Note: Enter debits before credits. Date General Journal Debit Credit July 15 ... raw lill O 69°F Cloudy 4x pe here to search 99+ 21 ort sc delete 24 6. 6) backspace R T Y. JL F G H. K