### Required Information**[The following information applies to the questions displayed below.]**The financial statements for Highland Corporation included the following selected information:- **Common stock:** $515,000- **Retained earnings:** $890,000- **Net income:** $1,110,000- **Shares issued:** 103,000- **Shares outstanding:** 64,000- **Dividends declared and paid:** $770,000The common stock was sold at a price of $36 per share.### Required:1. What is the amount of additional paid-in capital?**Additional paid-in capital:** [Input box]

INTRODUCTION: The amount of money that a company's shareholders pay for shares in excess of the par…

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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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A9
Beacon Corporation issued a 8 percent stock dividend on 35,000 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $30 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required A Required B Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account balances with a minus sign.)…
A corporation has the following account balances: Common stock, $1 par value, $42000; Paid-in Capital in Excess of Par, $730000. Based on this information, the O number of shares outstanding is 772000. O legal capital is $772000. O number of shares issued is 42000. O average price per share issued is $6.96.
Using the following information for the year ended 30 June, prepare the Retained Earnings Account for Kramer Ltd. Retained earnings as at 1 July $450,000 Transfer from Dividend Equalisation Reserve $200,000 Operating Profit (before income tax expenses $270,000) $900,000 Create a provision for dividend of 15 cents per share. There are 7,500,000 shares issue
State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of $1,500,000, beginning-of-the-period retained earnings of $3,675,000, 1 million shares of common stock issued at a par value of $1 per share, and paid-in capital in excess of par of $12.50 per share?
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…
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e Home Dividend constraints The Howe Company's stockholders' equity account is as follows: . The earnings available for common stockholders from this period's ase Options operations are $100,000, which have been included as part of the $1.6 million retained earnings. a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) b. If the firm has $160,000 in cash, what is the largest per-share dividend it can pay without borrowing? c. Indicate the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b. d. Indicate the effects of an $80,000 cash dividend on stockholders' equity. dar a. The maximum dividend per share that the firm can is $ (Round to the nearest cent.) b. If the firm has $160,000 in cash, the largest per-share dividend it can pay without borrowing is $ (Round to the nearest cent.) c. If the firm pays the dividends indicated in part a, cash will decrease by $…
Following is the Balance Sheet of Redeemable Limited: 24 I. Equity and Liabilities (1) Shareholders' Funds (a) Paid-up Share Capital : 10% 1,000 Redeemable Preference Shares of $ 100 each fully called up Less : Calls in Arrears on 50 Shares @ $ 20 each 1,00,000 1,000 99,000 5,00,000 50,000 Equity Shares of $10 each (b) Reserves and Surplus : Development Rebate Reserve General Reserve 50,000 1,00,000 1,50,000 1,51,000 (2) Other Liabilities Total Equity and Liabilities 9,00,000 II. Assets Other Assets 8,10,000 90,000 Bank Total Assets 9,00,000 The Redeemaule Preference Shares were redeemed on the following basis : (1) Further 4,500 equity shares were issued at a premium of 10 per cent; (2) of the 50 Preference Shares, holders for 40 shares paid the call before the date of redemption. The balance 10 shares were forfeited for non-payment of calls before redemption. The forfeited shares were reissued as fully paid on receipt of $500 before redemption; (3) Preference shares were redeemed at…
The charter of a corporation provides for the issuance of 118,000 shares of common stock. Assume that 44,000 shares were originally issued and 3,100 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1-per-share dividend is declared? a.$44,000 b.$118,000 c.$40,900 d.$3,100
A corporation has the following account balances: Common Stock. $1 par value, $80000; Paid-in Capital in Excess of Par Value, $2710000. Based on this information, the O average price per share issued is $3.49. O number of shares issued is 80000 O number of shares outstanding is 2790000. O legal capital is $2790000.
3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.

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