Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5cumulative preferred shares. On December 31, 2024, there were 32,900 common and 940 preferred shares issued. The commonshares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earningsaccount on January 1, 2024, was $269,780. During 2024, the company had profit of $117,500 and declared a total of $70,500 ofdividends, of which $52,875 was paid during the year. (b)Shareholders EquityShare CapitalPreferred SharesCommon SharesTotal Share CapitalRetained EarningsSPLISH BROTHERS LIMITEDBalance Sheet (Partial)December 31, 2024Total Shareholders' EquityReturn on equityf%$$98,700329,000427,700316,780Calculate return on equity for 2024. Assume there were no changes in the Common Shares and Preferred Shares accounts duringthe year. (Round answer to 2 decimal places, e.g. 15.75%744,480

Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation…

Answered: Splish Brothers Limited is a private…

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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The company has 100,000 preferred shares issued and outstanding for the entire year. The preferred shares are non-cumulative and non-participating. There is a conversion feature where each preferred share can be converted into 20 common shares. On January 1, 2021; the company had 600,000 common shares outstanding. On April 1, the company issued 200,000 common shares. There was a 2 for 1 stock split on June 1. These transactions have been accounted for and are included on the trial balance. The company can issue an unlimited number of common shares. show your work relating to, weighted average number or shares and Earnings per Share and to make any dividend calculations. Only calculate EPS and Diluted EPS for 2021. There was no change in shares during 2020. Revenue 4,027,450 Expenses 3,153,193 Net Income 874,257 Need Journal Entry!
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Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $40 per share. On June 30, Knapp declared a cash dividend of $2 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 200,000 of its own shares of stock for $50 per share. On December 22, Knapp resold 100,000 of these shares for $60 per share. Required: Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $6,000,000.
Crane Corporation was organized on January 1, 2027. It is authorized to issue 19,800 shares of 7%, $50 par value preferred stock and 462,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Mar. 1 1 Issued 71,000 shares of common stock for cash at $5 per share. Issued 11,600 shares of preferred stock for cash at $56 per share. Issued 116,000 shares of common stock for cash at $8 per share. May Sept. 1 Nov. 1 Issued 5,200 shares of common stock for cash at $6 per share. Issued 3,200 shares of preferred stock for cash at $58 per share. (a) Prepare a tabular summary to record the transactions. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Jan. 10 $ Mar. 1 Cash 1 $ Common Stock Paid-in-Capit Stated…
Mechforce, Incorporated had net income of $150,000 for the year ended December 31, 2022. At the beginning of the year, 17,000 shares of common stock were outstanding. On April 1, an additional 19,000 shares were issued. On October 1, the company purchased 4,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Mechforce paid the annual dividend on the 8,000 shares of 4.60%, $100 par value preferred stock that were outstanding the entire year. Required: Calculate basic earnings per share of common stock for the year ended December 31, 2022. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Earnings per share $ 0.74 x
Sheridan Company was organized on January 1, 2022. It is authorized to issue 12,500 shares of 8%, $100 par value preferred stock, and 477,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,500 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,550 shares of preferred stock for cash at $105 per share. Issued 24,500 shares of common stock for land. The asking price of the land was $92,500. The fair value of the land was $85,000. Apr. 1 May 1 Issued 80,000 shares of common stock for cash at $5.00 per share. Issued 10,000 shares of common stock to attorneys in payment of their bill of $44,500 for services performed in helping the company organize. Aug. 1 Sept. 1 Issued 11,500 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,500 shares of preferred stock for cash at $114 per share.
Mechforce, Incorporated had net income of $171,200 for the year ended December 31, 2022. At the beginning of the year, 16,000 shares of common stock were outstanding. On April 1, an additional 17,000 shares were issued. On October 1, the company purchased 6,000 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Mechforce paid the annual dividend on the 8,000 shares of 3.35%, $100 par value preferred stock that were outstanding the entire year. Required: Calculate basic earnings per share of common stock for the year ended December 31, 2022. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Baez Corp. began operations on Jan. 1, 2023. Baez Corp. is authorized to issue 150,000 shares of it's 6%, $40 par value preferred stock. The company is authorized to issue 650,000 shares of the common stock with a par value of $2 per share. On January 5, 2023, the company issued 225,000 shares of common stock for cash at $13 per share. What is the journal entry to record the issuance of the common stock shares?
Eastport Inc. was organized on June 5, 2018. It was authorized to issue 470,000 shares of $8 par common stock and 65,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.: Issued 24,000 shares of common stock for $13 per share. Issued 11,000 shares of the class A preferred stock for $30 per share. Issued 45,000 shares of common stock for $16 per share. Required: Prepare the stockholders’ equity section of the balance sheet immediately after these transactions have been recognized
Bridgeport Corporation was organized on January 1, 2022. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 504,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan. 10 Mar. 1 Issued 85,000 shares of common stock for cash at $4 per share. Issued 5,150 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 22.000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $84,000. May 1 Issued 78,000 shares of common stock for cash at $5.25 per share. Aug. 1 Sept. 1 Nov. 1 Issued 11.000 shares of common stock to attorneys in payment of their bill of $43,000 for services performed in helping the company organize. Issued 12,000 shares of common stock for cash at $7 per share. Issued 1,000 shares of preferred stock for cash at $113 per share.
Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $40 per share. On June 30, Knapp declared a cash dividend of $2 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 200,000 of its own shares of stock for $50 per share. On December 22, Knapp resold 100,000 of these shares for $60 per share. Required: Prepare all of the necessary journal entries to record the events described above. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $6,000,000.
Flint's Dance Studios Ltd. is a public company, and accordingly uses IFRS for financial reporting. The corporate charter authorizes the issuance of an unlimited number of common shares and 70,000 preferred shares with a $2 dividend. At the beginning of the December 31, 2020 year, the opening account balances indicated that 30,000 common shares had been issued for $5 per share, and no preferred shares had been issued. Opening retained earnings were $311,000. The transactions during the year were as follows: Jan. 15 Issued 12,000 common shares at $6 per share. Feb. 12 Issued 2,300 preferred shares at $56 per share. Sept. 2 Issued 5,000 common shares in exchange for land valued at $30,000. Oct. 31 Declared and paid a dividend on preferred shares of $2 per share. Nov. 1 Declared and paid a dividend on common shares of $1.20 per share. Nov. 15 Purchased and retired 500 preferred shares at $58 per share. Dec. 31 After preliminary closing entries, the Income Summary account had a credit…

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