Sheffield Corp. has 100000 shares of $10 par common stock authorized. The following transactions took place during 2020, the fir year of the corporation's existence: Sold 19000 shares of common stock for $13.50 per share. Issued 19600 shares of common stock in exchange for a patent valued at $294000. At the end of the Sheffield's first year, total paid-in capital amounted to O $550500. O $256500. O $114000. O $294000.

Sheffield Corp. has 100000 shares of $10 par common stock authorized. The following transactions took place during 2020, the fir year of the corporation's existence: Sold 19000 shares of common stock for $13.50 per share. Issued 19600 shares of common stock in exchange for a patent valued at $294000. At the end of the Sheffield's first year, total paid-in capital amounted to O $550500. O $256500. O $114000. O $294000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Steam Room Inc. (SRI) has 15,000 shares issued in total. Assume that on January 1, 2021, Omega Corporation acquired 35% of SRI's shares for $45 per share. Omega is assumed to have significant influence over SRI and will use the equity method to account for its investments. For the year ended December 31, 2021, SRI reported profit of $800,000 and declared and paid $50,000 in cash dividends. At December 31, 2021, SRI's common shares were traded at $50 each but dropped to $35 by January 31, 2022. The ending balance of Omega's investment account in SRI on December 31, 2021 is $525,000. $498,750. $533,750. O $560,000.
Sunland Company was organized on January 2, 2021, with 508000 authorized shares of $10 par value common stock. During 2021, Sunland had the following capital transactions: January 5-issued 381000 shares at $15 per share. July 27-purchased 25400 shares at $12 per share. November 25-sold 15240 shares of treasury stock at $14 per share. Sunland used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2021? O $45720. $0. O $15240. O $30480.
The Parent Company purchased common stock of Sub Company in a series of open-market purchases in 2021 and 2022. January 1, 2021 purchased 2,000 shares at $12 per share. January 1, 2022 purchased 9,000 downloadshared at $15 per share. Sub Company had 20,000 shares of $10 par value common stock outstanding for the entire period. Dividends of 12000 were paid on December 31, 2022. Sub Company had Net Income of $25,000 in 2021 and $40,000 in 2022. The amount of revaluation loss the Parent Company recognizes in 2022: The net impact on Parent Company books of the Investment in Sub Company account due to the 2022 dividends and net income of Sub Company would be:
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What are the effects on the books of Heaven Inc. upon the cash sale of additional ordinary shares? A. Cash will increase by P900,000.B. Cash will increase by P900,000 and ordinary share capital will increase by P900,000.C. Cash will increase by P900,000, ordinary share capital will increase by P500,000 and share premium will increase P400,000.D. Cash will increase by…
Oriole Corporation has 100000 shares of $10 par common stock authorized. The following transactions took place during 2025, the first year of the corporation's existence: Sold 20700 shares of common stock for $14.50 per share. Issued 20400 shares of common stock in exchange for a patent valued at $306000. At the end of Oriole's first year, total paid-in capital was $300150. $606150. $306000. O $120700.
The following information was taken from the accounting records of BT21, Inc. for 2021:· Proceeds from issuance of preferred shares, P800,000· Bonds payable converted to ordinary shares, P200,000· Proceeds from sale of plant building, P1,000,000· Gain on sale of plant building, P100,000· Dividends paid on preference shares P50,000· Payment for purchase of machinery, P200,000· 2% bonus issue on ordinary shares, P300,000How much is the net cash flow from investing activities and cash flow from investing activities during 2021, respectively? A. P800,000; P750,000 B. P800,000; P950,000 C. P900,000; P750,000 D. P900,000; P950,000
Atlanta Co. has 100,000 common shares outstanding as of January 1, 2020 and after-tax net income of $300,000 for 2020. On March 31, 2020 Atlanta Co repurchased 5,000 shares of its outstanding common stock. On October 1, 2020, the company issues an additional 50,000 shares of common stock. On October 31, 2020 the company distributed a stock dividend of 40%. The company also has 20,000 shares of 4% $10 par cumulative preferred stock outstanding. Assume that 5,000 shares of the preferred stock have the option to be converted to 2,000 shares of common stock at any time. In 2019 Atlanta Co. issued stock options to its 2 top executives that allow them to each purchase up to 1,000 shares of common stock at a purchase price of $25 per share. The current market price of Atlanta Co common stock is $40 per share and Atlanta Co.’s income tax rate is 30%. Compute the Basic EPS___________________________ Compute Fully Diluted EPS_________________________ *Urgent
ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021?
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What amount should be reported as retained earnings on December 31, 2021? A. 2,500,000B. 2,750,000C. 3,250,000D. 4,750,000
Cane company issued share capital of 20,000 shares with P5 par at P10 per share On Dec 31, 2019 Cane’s retained earnings were P300,000. In March 2020 Cane reacquired 5,000 shares at P20 per share. In June 2020 Cane sold1,000 of these shares to its corporate officers for P25 per share. Cane uses the cost method to record treasury shares. Net income for the year ended Dec 31, 2020 was P60,000. At Dec 31, 2020, what amount should Cane report as unappropriated retained earnings? __________________
At the beginning of 2020, tradewell Mktg. Corp. had retained earnings of P5,000,000. Throughout the year, the company had 20,000 shares of P100 par value ordinary shares that are issued and outstanding. During the year 2020 Tradewell Mktg. corp reportd profit of P2,500,000, purchased a treasury chares of P750,000 declared a cash dividends of 2,000,000, reissued all treasury shares at a gain of PI80,000 and dedared and issued 5000 shares as bonus issue when the market value was 150 per share. 1. what is the retained earning balance at December 3l, 2020. 2. Assuming that there are 50,000 issued and outstanding ( instead of 20,000 shares). What is the retained earnings balance at december 3l, 2020?
Ivanhoe Observation Inc. on May 1 2024, and was authorized to issue 500,000 common shares and 100,000 5%, non-participating, convertible preferred shares. During the remainder of 2024, the company entered into the following transactions: 1. Issued 32,000 common shares in exchange for $640,000. 2. Issued 5,000 preferred shares in exchange for $70,000. 3. Repurchased 3,000 common shares for $25.00 per share in the open market. The company entered into no other transactions that affected shareholders' equity during 2024. (a) Provide the journal entries for each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)