Required information (The following information applies to the questions displayed below.} On March 24, 2019, Metco Inc. purchased for its treasury 2,500 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 750 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.40 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 3% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. Calculate the total amount of the cash dividends paid in the second quarter. Dividend paid
Q: The Maria Incorporated was established in 2018. The Corporation issued 100,000, ₱20 par value shares…
A: Solution: Statement of Changes in Equity of Maria Incorporated for the year 2019 is as under:
Q: Lacoste Inc., was organized on January 2, 2019 with a total authorized capital of P 2,000,000, P 20…
A: Securities and Exchange Commission (SEC) is an independent federal agency of the United States. It…
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: Green Corporation is authorized to issue 120,000 common shares and 80,000, $4 preferred shares. At…
A: Shareholder’s Equity: It can be referred to as one of the parts of the balance sheet other than the…
Q: King Tut Corporation issued 6,600 shares of common stock, all of the same class; 3,400 shares are…
A: Journal entries are prepared to record the financial and non financial transactions of the business.
Q: At the beginning of 2019, ABC Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Issue of bonus shares will not result in any cash flows into the organization, but the shareholder's…
Q: In 2018, Broyles, Inc. reacquired 3,000 shares of its common stock at $55 per share. In 2019,…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: At December 31, 2020, Coronado Industries had 1140000 shares of common stock outstanding. In…
A: We know that the diluted earnings per share is the net income generated by each outstanding share…
Q: The following information applies to the questions displayed below.] Permabilt Corp. was…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 2-for-1 basis. In its…
A: No. of shares outstanding after split off = No. of shares outstanding before split off x split off…
Q: In January 2022, the management of Pharoah Company concludes that it has sufficient cash to permit…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: At the beginning of 2019, Cookie Corporation had retained earnings of P 3,000,000. Throughout the…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: the Nicklaus Corporation participated
A: Date account titles Debit amount($) Credit amount($) June 30 Treasury stock A/c 2,400,000…
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: During the year ended December 31, 2019, and in the following montha of January and February 2020,…
A: The FV- fair Value of Securities is considered as the current value at which the security is trading…
Q: Ringmeup Inc. had net income of $186,400 for the year ended December 31, 2019. At the beginning of…
A: Basic Earnings per share of common stock is computed by dividing the Net income less preferred…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A:
Q: On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of…
A: Balance Sheet (Extracts) Stockholder' Equity: Amount Common Stock $ 150,000 Retained…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Financial StatementFinancial Statement is the combination of the three major reports on a business.…
Q: The equity section of Gannon Oilfield Corporations balance sheet at December 31,2019 is shown below:…
A: Average price received for each issued preferred share = Issued and Outstanding preferred capital /…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Treasury stock seems to be the share in a corporation that has been bought by the issuer. The…
Q: Metlock Corporation made the following cash purchases of securities during 2020, which is the first…
A: The question is based on the concept of Financial Accounting.
Q: During 2021, its first year of operations, McCollum Tool Works entered into the following…
A: Weighted average no. of outstanding common shares = 35,000,000 + 4,000,000*9/12…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Effect of given transactions on balance sheet:
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: During the course of your audit, you came across with the following information. STAR Company…
A: Dividend income = Equivalent cash dividend on 10,000 shares = Number of…
Q: Waterway Corporation was organized on January 2, 2020. During 2020, Waterway issued 39200 shares at…
A: Purchase of treasury stock will reduce the stockholders equity. The net income will be added to…
Q: Below is the shareholders'equity section of Samson Corporation's statement of financial position as…
A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…
Q: On December 31, 2020, the Frisbee Company had 262,000 shares of common stock issued and outstanding.…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: Prepare the journal entries to record the above three security purchases.
A: In these case the equity securities purchase do not indicate exercise of significant influence and…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Required journal entries:
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Effect of given transactions on income statement: Results of the excel sheet is as follows:
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Journal entries are used to hold track of financial transactions. You enter transaction data into…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: The income statement is a financial statement that represents the financial performance of the…
Q: Dakota Corporation had the following shareholders' equity account balances at December 31, 2018:…
A: Common stock- Individuals who own common stock have a claim on profits (dividends) and the ability…
Q: In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had…
A: Prepare journal entries for each of the following transactions: 1. Date Account titles and…
Q: Ringmeup Inc. had net income of $151,000 for the year ended December 31, 2019. At the beginning of…
A: Calculation of Basic Earnings per share: Thus, Basic Earnings per share is $2.84
Q: Required information (The following information applies to the questions displayed below.] On…
A: Assets=Liabilities+Stockholder's Equity
Q: Metlock Corporation made the following cash purchases of securities during 2020, which is the first…
A: Compute the unrealize gains or losses = Unrealizes holding ( gains / loses) = Faire Value -…
Q: At the beginning of 2019, TJH Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Solution: Retained earnings balance at Dec 31, 2019 = Beginning retained earnings + Net income -…
Q: SHOW THE JOURNAL ENTRY FOR EACH TRANSACTIONS Your inquiries and investigation revealed the…
A: * As per the bartleby guidelines in case of interlinked question, answer first 3 only Treasury…
Q: An excerpt from the financial records of Windle Inc. (Windle) at December 31, 2019, was as follows:…
A: In the given question we are provided with the information of Windle Inc. With the given information…
Q: However, now assume that for this question only that the preferred shares were cumulative and…
A: Preferred Shareholders dividend for 2019 not Paid before = 300,000 x 0.90 =270,000 Preferred…
Q: Metlock Corporation made the following cash purchases of securities during 2020, which is the first…
A: purchased 11,600 shares of Sanchez Company’s common stock at $ 33.50 per share plus commission $…
Q: 1. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance…
A: Given: The transactions of Nicklaus corporation during the year 2021 is given.
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 3-for-1 basis. In its…
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: Quadrant Corporation paid dividends of P2,000,000 and P3,000,000 at the end of 2019 and 2020,…
A: Cumulative preference share can enjoy the right of any unpaid dividend on their share capital.…
Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…
A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…
Q: Presented below is information related to Alligator Corporation for 2019. 1. On September 4,…
A: Journal entries: it is the duty of the accountant to record business economic and non economic…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
- Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.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?Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000