The following data was available for Smithson Corporation on December 31, 2022:Common shares (30,000 authorized; 10,000 issued). $280,000 (CR)Contributed surplus-reacquisition of shares, $10,000 (CR)The only change in 2023 was that Smithson paid $20,000 to reacquire 800 of its own shares. For the reacquisition, what amountwould be recorded for Contributed Surplus-Reacquisition of Shares?O CR $20,000O DR $2,400O CR $2,400O DR $20,000Save for LaterSubmit Answer

Reacquisition of shares means the shares that were issued by the entity, have been bought back from…

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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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For the year ended December 31, 2024, Norstar Industries reported net income of $955,000. At January 1, 2024, the company had 1,030,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 Sold 75,000 shares in a public offering May 24 Declared and distributed a 5% stock dividend June 1 Issued 84,000 shares as part of the consideration for the purchase of assets from a subsidiary Required: Compute Norstar's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Answer is complete but not entirely correct. $ Numerator 955 ÷ Denominator Earnings per Share 1,170 = $ 0.82
For the year ended December 31, 2024, Norstar Industries reported net income of $935,000. At January 1, 2024, the company had 840,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 Sold 55,000 shares in a public offering May 24 Declared and distributed a 5% stock dividend June 1 Issued 54,000 shares as part of the consideration for the purchase of assets from a subsidiary Required: Compute Norstar's earnings per share for the year ended December 31, 2024. I need help with computing the weighted average of outstanding shares
Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.25) $10.00 Direct labor (0.15 hr. @ $18.00) 2.70 Fixed overhead (0.20 hr. @ $3.00) 0.60 Variable overhead (0.20 hr. @ $1.70) 0.34 Standard cost per unit $13.64 Overhead rates are computed using practical volume, which is 49,000 units. The actual results for the year are as follows: Units produced: 53,000 Direct materials purchased: 408,000 pounds at $1.32 per pound Direct materials used: 406,800 pounds Direct labor: 10,500 hours at $17.95 per hour Fixed overhead: $36,570 Variable overhead: $18,000 MPV=28,560 UNFAV MUV=21,500 FAV LRV=525 FAV LEV=45,900 UNFAV FIXED SPENDING VARIANCE= 7,170 UNFAV FIXED VOLUME VARIANCE= 2,400 FAV VARIABLE SPENDING= 150 UNFAV VARIABLE EFFICIENCY= 4,335 UNFAV Prepare journal entries for the following: The purchase of direct materials The issuance…
Kelbrooklimited provided the following information.1.The issue share capital consists of 180000 ordinary shares of $0.50 each2. On 1 jan 2019: general reserve is $ 4,000. Retained earnings is $ 5,5003. The profit for the year ended 31 December 2019 was $ 9,000. $ 2000 of this was transferred to the general reserve .4. An interim dividend of $4,500 was paid during the year. No dividends were proposed at the end of the Required Prepare Statement of changes and Equity Account
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss?Using the data, how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. Using the data, how much will be credited to Cash? Using the data, how much will be debited to Ordinary Share Premium??
The shareholders' equity section of the balance sheet of TNL Systems Incorporated included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings Required: ($ in millions) $ 240 1,680 1 1,100 1. During 2024, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2024, TNL Systems purchased 6 million shares at $10 per share. b. On July 9, 2024, the corporation sold 2 million shares at $12 per share. c. On November 14, 2026, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2026, comparing the two approaches. Assume all net income earned in 2024-2026…
In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2: Reacquired 74,000 shares at $12.40. March 17: Sold 24,000 shares at $14.20. May 17: Sold 29,000 shares at $8.20. Southwestern had issued 100,000 shares of its $1 par common stock for $10 several months ago.Required:Prepare the journal entries to record the above transactions, using the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The balance in the retained earnings account of Indigo Corporation was P450,000 at December 31, 2021. During 2022, the company had the following transactions: - Acquired 5,000 shares of treasury stock at P70 per share. The stock had a par value of P50 and had originally been issued for P65 per share. There had been no previous treasury stock transactions. - Net income of P400,000 was earned in 2022. - Sold the 5,000 shares of treasury stock at P80 per share. The company uses the cost method of accounting for treasury stock, what is the balance in total retained earnings at December 31, 2022?
Buffalo Limited has the following information available regarding its share capital at December 31, 2020: Preferred shares, $3.50 cumulative, 18,700 shares issued $935,000 Preferred shares, $4.50 noncumulative, 14,800 shares issued 740,000 Common shares, 296,000 shares issued 1,480,000 The shares were issued when the corporation began operations on January 1, 2019. No dividends were declared during 2019 and 2020. On October 30, 2021, the board of directors declares the required preferred share dividends and a $0.50 dividend for each of the common shares. The dividends are payable on December 1, 2021, to the shareholders of record on November 16, 2021. How much will be paid to each class of shares? Cumulative preferred shares $enter a dollar amount Noncumulative preferred shares $enter a dollar amount Common shares $enter a dollar amount Prepare journal entries on the appropriate dates…
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…
Crane Inc. a publicly traded company, had 195,000 common shares outstanding on December 31, 2022. During 2023, the company issued 6,000 shares on May 1 and retired 18,000 shares on October 31. For 2023, the company reported net income of $186,200 after a loss from discontinued operations of $35,280 (net of tax). Assume that Crane issued a 3-for-1 stock split on January 31, 2024, and that the company's financial statements for the year ended December 31, 2023, were issued on February 15, 2024. Calculate earnings per share for 2023 as it should be reported to shareholders.
National Supply's shareholders' equity included the following accounts at December 31, 2023: Shareholders Equity Common stock, 5 million shares at $1 part Paid-in capital-excess of par Retained earnings Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2024 Reacquired 480,000 shares at $9 per share. February 17, 2825 Reacquired 480,000 shares at $6.50 per share. November 9, 2826 Sold 335,000 shares at $8 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net Income was $20 million in 2024, $22 million in 2025, and $24 million in 2026. No dividends were paid during the three-year period. Complete…

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