QUESTION 14 A year-end balance sheet includes the following information for Owners' Equity: Common stock (100,000 shares issued, 90,000 shares outstanding) $ 50,000 650,000 Additional paid-in capital Retained earnings 275,000 Less: Treasury stock (10,000 shares) (297,500) Assuming all treasury shares were repurchased on the same date, what price per share did the company pay to reacquire these shares?
Q: Question 14
A: Service department: A service department is a division in an organization which is not involved…
Q: The records at Smith and Jones, Inc. show that Job 110 is charged with $11,000 of direct materials…
A: Direct material cost = $11,000 Direct labor cost = $12,000 Manufacturig overhead = $10,200…
Q: Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend…
A: Dividend after 2 years (D2) = $0.49 Growth rate (g) = 4.2% Required rate of return (r) = 11.2%
Q: Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If…
A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…
Q: Question 13
A: Future value of an annuity of $2400 for 6 years at an interest rate of 4% can be calculated using…
Q: Required information [The following information applies to the questions displayed below.] On June…
A: Answer:- Stock split definition:- When a corporation splits its stock, it raises the number of…
Q: form of opinion you would consider the most appropriate to use
A: The client has violated the accounting standard IAS 16 -Property, Plant and Equipment by not…
Q: Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years…
A: The double declining balance (DDB) depreciation method is an approach to accounting that involves…
Q: for a relate to (a) operating activities, and (b) nonoperating activities. 18. Identify the sections…
A: Multi Step Income statement is one of the financial statements which shows all type of incomes and…
Q: Based upon this information, Budget Wings' current weighted average cost of capital (WACC) is…
A: WACC: It represents the company's average cost of capital and is computed by the sum of the…
Q: average number of days it takes Rhodes to collect its accounts receivable.
A: Average collection period means the amount of time it requires for a business to receive payments…
Q: Investors in IBM common stock expect the firm to pay a dividend next year of $1.79 per share.…
A: Next dividend (D1) = $1.79 Growth rate (g) = 6% Stock price (P0) = $76
Q: Use the information below for the Greek Corporation to answer the following questions. Refer to the…
A: Those resources with economic value that are owned by the company are term as the total assets. The…
Q: debit to Work - in - Process Inventory $4,384 and a credit to Finished Goods Inventory $4,384 debit…
A: Journal entry: Journal entry is a set of economic events which can be measured in financial terms.…
Q: Question 13
A: A budget is a statement prepared by the companies, government, and individuals based on the…
Q: On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $38,000.…
A: The units-of-production depreciation method assigns an equal amount of depreciation to each unit of…
Q: Use this information about Department W to answer the question that follows. Department W had 2,940…
A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…
Q: A flexible budget graph for the Assembly Department shows the following: 1. At zero direct labor…
A: In this question, we will find out budgeted cost as per the labor hours.
Q: A series of equal periodic finite cash flows that occur at the beginning of the period are known as…
A: A series of equal periodic finite cash flows that occur at the end of the period are known as…
Q: B) Cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from…
A: Periodic inventory system is an inventory system in which all purchases and sales transactions…
Q: Use the following to answer questions 12 – 15 At December 31, KC Co reported accounts receivable of…
A: Allowance for uncollectible accounts are generally given as a % of Accounts Receivable as given in…
Q: 23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30.…
A: solution question 23 as required by you concept the meaning of credit term 2/10 , n/30…
Q: Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $3,400,000 par value,…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: Which of the following is NOT an advantage of the valuation multiple method as compared to the…
A: Valuation multiples are financial assessment tools that compare different organizations by…
Q: form of opinion you would consider the most appropriate
A: The entity has made proper disclosure regarding the takeover of other company and expected increase…
Q: Recording Entries for Equity Investment: Equity Method On January 1, 2020, Allen Corporation…
A: Equity method is one of method used to value of an investment made by an entity in other entity,…
Q: Kathy is 48 years of age and self-employed. During 2023 she reported $120,000 of revenues and…
A: A simplified employee pension (SEP) is an employee retirement fund (IRA) that may be established by…
Q: Arnold has determined that he can afford a monthly payment of $425 for a car. If he can obtain a…
A: Loan is a contract between lender and borrower where lender provides funds to borrower for definite…
Q: Work - in - Process Inventory 2,000
A: The ending balance of inventory is calculated by adding the opening, direct material, direct labor,…
Q: The two major components of the interest rate that cause rates to vary across different investment…
A: Maturity risk premium: Maturity risk premium is considering as the amount of additional return you…
Q: Marx and Tyler provides hair-cutting services in the local community. In February, the business cut…
A: The calculation of Cost of service to provide one hair cut is shown hereunder : Total haircuts in…
Q: Manufacturing Overhead 41,000 During June, the following transaction took place: June 2: Issued…
A: Manufacturing overheads are also known as the factory overheads . It includes the costs incurred in…
Q: Nicanor left the following bank deposits upon his death: • Uno Bank - Php 1,000,000 • Dos Bank - Php…
A: The heirs will opt for final tax and bank will collect final with holding tax at rate of 6% on 6…
Q: QUESTION 23 A company receives $2,000 for selling used equipment that had a book value of $3,500.…
A: CASH FLOW STATEMENT IS A FINANCIAL STATEMENT THAT PROVIDES AGGREGATE DATA REGARDING ALL CASH INFLOWS…
Q: Amounts received in advance from customers for future products or services: Multiple Choice O о O O…
A: Amount received in advance is a current liabilities and payable within a time period of one year.…
Q: QUESTION 12 A company received a bank statement showing a balance of $62,300. Reconciling items were…
A: Bank reconciliation statement is prepared to reconcile the cash balance as per cash book and bank…
Q: Question 13
A: Under direct method of cost allocation of service costs, the service departments directly allocate…
Q: - form of opinion you would consider the most appropriate
A: The client has made appropriate disclosures regarding the intention to discontinue the manufacturing…
Step by step
Solved in 2 steps
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
- Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000 shares authorized and 45,000 shares outstanding. Assume that Eastern declares and pays preferred dividends quarterly. Required: Prepare the journal entry to record declaration of one quarterly dividend. Prepare the journal entry to record payment of the one quarterly dividend.Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: A. Issued 15,000 shares of 20 par common stock at 30, receiving cash. B. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. C. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. D. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. E. Paid the cash dividends declared in (D). F. Purchased 8,000 shares of treasury common stock at 33 per share. G. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. Recorded the payment of semiannual interest on the bonds issued in (C) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock, 80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.STOCK ISSUANCE (NONCASH ASSETS, SUBSCRIPTIONS, AND TREASURY STOCK) Brant Evans had the following stock transactions during the year: (a) Issued 6,000 shares of common stock with a 5 par value in exchange for real estate (land) with a fair market value of 33,500. (b) Issued 5,500 shares of common stock with a 5 par value and 7 fair market value in exchange for a building with an uncertain fair market value. (c) Received subscriptions for 11,000 shares of 5 par common stock for 58,000. (d) Received a payment of 29,000 on the stock subscription in transaction (c). (e) Received the balance in full for the stock subscription in transaction (c) and issued the stock. (f) Purchased 2,000 shares of its own 5 par common stock for 6 a share. (g) Sold 1,000 shares of the treasury stock in transaction (f) for 6.50 a share. (h) Sold 1,000 shares of the treasury stock in transaction (f) for 5.75 a share. Prepare general journal entries for these transactions, identifying each by letter.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
- Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.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.Common Dividends Fusion Payroll Service began 2019 with 1,200,000 authorized and 375,000 issued and outstand ing $5 par common shares. During 2019, Fusion entered into the following transactions: Declared a S0.30 per-share cash dividend on March 10. Paid the $0.30 per-share dividend on April 10. Repurchased 8,000 common shares at a cost of $18 each on May 2. Sold 1.500 unissued common shares for $23 per share on June 9. Declared a $0.45 per-share cash dividend on August 10. Paid the $0.45 per-share dividend on September 10. Declared and paid a 5% stock dividend on October 15 when the market price of the common stock was $25 per share. Declared a $0.50 per-share cash dividend on November 10. Paid the $0.50 per-share dividend on December 10. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) Determine the total dollar amount of dividends (cash and stock) for the year. CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.