Shown as follows are the amounts from the stockholders' equity section of the balance sheets ofWasson Corporation for the years ended December 31, 2020 and 2021.Stockholders' equity:Capital StockRetained EarningsTotal stockholders' equitya.b.20212020$50,000 $30,000200,000 180,000$250,000 $210,000Calculate the amount of additional investment that the stockholders made during 2021.Assuming that the corporation declared and paid $15,000 in dividends during 2021, calculatethe amount of net income earned by the corporation during 2021.c. Explain the significance of the $200,000 balance of retained earnings at December 31, 2021.

Stockholders equity is the amount invested by the owner's of the business and the retained earnings.…

Answered: Shown as follows are the amounts from…

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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Prince Corporation's accounts provided the following information at December 31, 2019: Total income since incorporation $840,000 Total cash dividends paid 260,000 Total value of stock dividends distributed 60,000 Additional paid-in capital from treasury stock 140,000 What should be the current balance of retained earnings? a.$670,000 b.$580,000 c.$610,000 d.$520,000
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Balance at January 1, 2019 sale of preferred shares sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/11 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 18% common stock dividend, 5/1 sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 Year 2019 2020 2021 LOCKE INTERTECHNOLOGY CORPORATION statements of shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Numerator / Denominator = Earnings per share 1 1 1 = Preferred stock, $10 par 12 12 12 $12 Common stock, $1 par 80 $ 11 91 (4) 43.5 130.5 13.05 3 $146.55 Additional Paid-in…
The board of directors of Tru Corporation declared cash dividends of $4.4 million, $9.0 million, and $51.0 million in each of its first 3 years of operation: 2019, 2020, and 2021, respectively. The shareholders' equity of Tru Corporation includes the items shown below. Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 5%, $100 par, 1,000,000 shares outstanding Required:Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is noncumulative and nonparticipating. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2021, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5. c. On July 12, 2022, the corporation declared and distributed a 4 %…
Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share capital: Preferred shares, $5 cumulative dividend, 144,000 shares issued and outstanding Share capital: Common shares, 699,000 issued and outstanding Retained earnings 2018 arrears 2019 arrears No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $4,851.150 were declared. Calculate how much would be paid to each class of shares. 2020 2018 arrears 2019 arrears Preferred 2020 Preferred $ No dividends were declared in 2018 or 2019; however, in 2020, cash dividends of $4,851.150 were declared. Calculate how much would be paid to each class of shares. Common Cash dividend per share $ $14,400,000 Common 27,960,000 $ 22,900,000 Total S Total Assuming that the number of common shares remained constant throughout 2020, what was the cash dividend per share distributed to the common shareholders? (Round answer to 2 decimal places, e.g. 4.62.) $
Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued 1,950 shares of $50 par value preferred stock and 105,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,000; 2022, $13,900; and 2023, $27,000.
Donnie Hilfiger has the following balances in its stockholders' equity accounts on December 31, 2021: Treasury Stock, $375,000; Common Stock, $250,00O; Preferred Stock, $1,300,000; Retained Earnings, $1,650,000; and Additional Paid-in Capital, $3,100,000. Prepare the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) DONNIE HILFIGER Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity
On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…
Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. ANACONDA INTERNATIONAL CORPORATIONStatements of Shareholders' EquityFor the Years Ended Dec. 31, 2021, 2022, and 2023($ in millions) Preferred Stock$10 par Common Stock$1 par AdditionalPaid-In Capital Retained Earnings TotalShareholders' Equity Balance at January 1, 2021 65 520 1,860 2,445 Sale of preferred shares 30 900 930 Sale of common shares 7 56 63 Cash dividend, preferred (3 ) (3 ) Cash dividend, common (17 ) (17 ) Net income 340 340 Balance at December 31, 2021 30 72 1,476 2,180 3,758 Retirement of shares (2 ) (16 ) (24 ) (42 ) Cash dividend, preferred…
The board of directors of Builders Equipment Corporaion (BEC) declared cash dividends of $2.1 million, $7.0 million, and $48.4 million in each of its first three years of operation: 2019, 2020, and 2021, respectively. BEC's shareholders' equity includes the items shown below.Common stock, $1 par, 50,000,000 shares outstandingPreferred stock, 7%, $100 par, 1,000,000 shares outstanding Required:Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. (Round your answer to 2 decimal places. For instance, if your answer is $12 per share, write 12.00. If your answer is 32 cents per share, write 0.32).
Bramble Corp. reported the following balances at December 31, 2021: common stock $408,000, paid-in Capital in Excess of Par- common stock $106,000, and retained earnings $242,000. During 2022, the following transactions affected stockholders' equity. 1. 2. 3. 4. Issued preferred stock with a par value of $128,500 for $209,000. Purchased treasury stock (common) for $36,500. Earned net income of $135,000. Declared and paid cash dividends of $52,500. Prepare the stockholders' equity section of Bramble Corp's December 31, 2022, balance sheet.
On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…

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