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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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 c. What was the average cost per share of the common stock purchased for the treasury during the month?
During its first year of operations, Cupola Fan Corporation issued 48,000 of $1 par Class B shares for $475,000 on June 30, 2021. Share issue costs were $3,300. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $48,500. Required: 1. to 4. Prepare the journal entries to record the issuance of the shares, the declaration of a $2.70 per share dividend on December 1, 2021, the payment of the dividend on December 31, 2021 and the retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) please dont give answer in the image format
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 $0.60 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15 e-1. Calculate the total amount…
21. Israel Company’s stockholders’ equity account balances at December 31, 2019, were as follows: • Common stock, P8,000,000 • Additional paid-in capital, P1,500,000 • Retained earnings, P3,500,000 The following 2020 transactions and other information relating to the stockholders’ equity. accounts: • Israel had 500,000 authorized shares of P50 par common stock, of which 160,000 shares were issued and outstanding. • On March 5, 2020, Israel acquired 5,000 shares of its common stock for P100 per share to be held as treasury stock. The shares were originally issued at P80 per share. Israel uses the cost method to account for treasury stock. • On July 15, 2020, Israel declared and distributed a property dividend of inventory. The inventory had a P1,500,000 carrying value and a P1,000,000 fair market value. • Israel's net income for 2020 was P4,000,000. Israel Company should report total stockholder’s equity on December 31, 2020 at?
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
Concord Corporation has 1,000,000 authorized shares of $25 par value common stock. As of June 30, 2020, there were 625,000 shares issued and outstanding. On June 30, 2020, the board of directors declared a $0.50 per share cash dividend to be paid on August 1, 2020. Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) (b) (c) Debit Credit
Kedzie Corporation was organized on January 1, 2019, with an authorization of 5,000,000 shares of $2 par value common stock. During 2019, Kedzie had the following common stock transactions: Jan. 4: Issued 300,000 shares of common stock @ $16 per share. Apr. 8: Issued 100,000 shares of common stock @ $12 per share. July 29: Purchased 20,000 shares of common stock for the Treasury at $10 / share Kedzie had no other transactions affecting common stock during the year. What will be the reported amount of Common Stock and APIC-CS, respectively, on the Company's December 31, 2019 Balance Sheet?
Wildhorse Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,770,000 shares of $10 par common stock. At no time has Wildhorse issued any potentially dilutive securities. Listed below is a summary of Wildhorse’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,050,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 205,000 3. Shares issued for cash on March 31, 2020 1,910,000 Number of common shares issued and outstanding at December 31, 2020 4,165,000 4. A 2-for-1 stock split of Wildhorse’s common stock took place on March 31, 2021 Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. shares eTextbook and Media Compute the weighted-average…
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…
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 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 of the dividend.
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