Required Information[The following information applies to the questions displayed below.]Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:• 770,000 shares of no-par common stock were authorized: 140,000 shares were issued on January 1, 2019, at $18.00per share..240,000 shares of $100 par value, 9.00% cumulative, preferred stock were authorized; 74,000 shares were issued onJanuary 1, 2019, at $150 per share.• Net income for the years ended December 31, 2019 and 2020 was $1,420,000 and $2,470,000, respectively.• No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors ofHomestead declared dividends of $1,860,000. payable on February 12, 2021, to holders of record as of January 19,2021.Required:1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statementeffect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)AssetsBalance SheetLiabilitiesAssetsBalance Sheet+Liabilities+Stockholders' Equity2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enterdecreases with a minus sign to Indicate a negative financial statement effect.)+Stockholders' Equity+Net Income→||=Net Income==Income StatementRevenues|-|Income StatementRevenuesExpensesExpenses Required Information[The following information applies to the questions displayed below.]Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:.• 770,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $18.00per share..240,000 shares of $100 par value, 9.00% cumulative, preferred stock were authorized; 74,000 shares were issued onJanuary 1, 2019, at $150 per share.• Net income for the years ended December 31, 2019 and 2020 was $1,420,000 and $2,470,000, respectively.• No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors ofHomestead declared dividends of $1,860,000, payable on February 12, 2021, to holders of record as of January 19,2021.Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "NoJournal entry required" In the first account fleld.)1. The issuance of common stock and preferred stock on January 1, 2019.2. The declaration of dividends on December 28, 2020.3. The payment of dividends on February 12, 2021.View transaction listJournal entry worksheet<12Record stock issuances.3Note: Enter debits before credits.DateJanuary 01, 2019Record entryGeneral JournalClear entryDebitCreditView general journal>

A journal entry is a form of accounting entry that is used to report a business transaction in a…

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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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3. Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share and the remaining were retired. The net income for the year is P455,700. The retirement of treasury shares has resulted in a share premium of how much?
Bacon Inc. has the following stockholders’ equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding $ 16,800,000 $ 16,800,000 Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively ? 2,700,000 Additional paid-in capital 26,100,000 23,220,000 Retained earnings 36,200,000 34,640,000 Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively (4,412,000 ) (4,148,000 ) Total stockholders' equity $ ? $ 73,212,000 g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $70 per share.1. What will be the par value, and how many shares of common stock will be…
Required Information [The following information applies to the questions displayed below.] On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share. On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019. and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. Required: a-1. Use the horizontal model for the treasury stock purchase on March 24, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.) Assets Balance Sheet Liabilities + Stockholders' Equity…
Required information [The following information applies to the questions displayed below] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively. Additional paid-in capital. Retained earnings Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively Total stockholders' equity. May 31, 2019 Total cash dividend $16,800,000 ? 26,100,000 36,200,000 (4,412,000) $ ? April 30, 2019 $16,800,000 2,700,000 23,220,000 34,640,000 (4,148,000) $73,212,000 Assume that on June 1 the board of directors declared a cash dividend of $0.60 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15 e-1. Calculate the total amount…
21. Israel Company’s stockholders’ equity account balances at December 31, 2019, were as follows: • Common stock, P8,000,000 • Additional paid-in capital, P1,500,000 • Retained earnings, P3,500,000 The following 2020 transactions and other information relating to the stockholders’ equity. accounts: • Israel had 500,000 authorized shares of P50 par common stock, of which 160,000 shares were issued and outstanding. • On March 5, 2020, Israel acquired 5,000 shares of its common stock for P100 per share to be held as treasury stock. The shares were originally issued at P80 per share. Israel uses the cost method to account for treasury stock. • On July 15, 2020, Israel declared and distributed a property dividend of inventory. The inventory had a P1,500,000 carrying value and a P1,000,000 fair market value. • Israel's net income for 2020 was P4,000,000. Israel Company should report total stockholder’s equity on December 31, 2020 at?
Subject: acounting
Harrington Home Services, Inc. had the following stock transactions April 23, 2017 issued 6,000 shares of $5 par common stock for 59 per share. June 20, 2019-repurchased 1.000 shares of their own common stock that was previously issued for $12 per share. November 2, 2019- sold 500 of the 1,000 repurchased treasury shares (from the June 20, 2019 transaction) for $15 per share. Record all three of these entries in good form, clearly identifying the accounts and amounts to be debited or credited.
3. How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)? 4. How much is the TOTAL share premium?
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On January 1, 2020, Company D issued 6,000 shares of its $2 par Common Stock when the market price was $30 and issued 1,000 shares of its $25 par Preferred Stock when the market price was $62 per share. What amounts would be reported on the balance sheet for Preferred Stock and Paid-In Preferred Stock? the above information is all that was given on the assignment, no further information was given for the question
Required Information [The following information applies to the questions displayed below.] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 Paid-in capital: Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized, 74,000 shares issued and outstanding Common stock, $6 par value, 600,000 shares authorized, 420,000 and 480,000 shares issued, respectively Additional paid-in capital Retained earnings Less: Treasury common stock, at cost; 21,000 shares and 19,500 shares, respectively Total stockholders' equity Par value Number of shares 2. What will be the market price per share of common stock after the split? Market price 3. How many shares of common stock will be in the treasury after the split? $ 8,880,000 Number of shares ? 14,670,000 12,070,000 (1,932,000) $ g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the…
On January 1, 2019, Rama Company issued 3,000 shares of 8%, OMR100 par value, preferred stock for 250,000. The board of directors declared dividends on December 30, 2019 and the dividends paid on 13/12/2019. As a result of this transaction dividend preferred in capital should be: Select one: a. Debited by 20000 b. None of the options c. Debited by OMR24000 O d. Credited by OMR24000

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