The following is a summary of all relevant transactions of Swifty Corporation since it was organized in 2025.In 2025, 15,600 shares were authorized and 7,400 shares of common stock ($50 par value) were issued at a price of $57. In2026,900 shares were issued as a stock dividend when the stock was selling for $59.310 shares of common stock were bought in2027 at a cost of $63 per share. These 310 shares are still in the company treasury.In 2026, 9,800 preferred shares were authorized and the company issued 5,100 of them ($100 par value) at $121. Some of thepreferred stock was reacquired by the company and later reissued for $4,810 more than it cost the company.The corporation has earned a total of $644,600 in net income after income taxes and paid out a total of $290,300 in cash dividendssince incorporation.Prepare the stockholders' equity section of the balance sheet in proper form for Swifty Corporation as of December 31, 2027. Accountfor treasury stock using the cost method. (Enter account name only. Do not provide descriptive information.)SWIFTY CORPORATIONStockholders' Equity69$A

The stockholders' equity includes the issued capital and retained earnings of the business. The…

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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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The annual report for Colonel Grains disclosed that 1 billion shares of common stock have been authorized. At the beginning of 2017, 790 million shares had been issued and the number of shares in treasury stock was 107 million. During 2017, the only common share transactions were that 15 million common shares were reissued from treasury and 26 million common shares were purchased and held as treasury stock. Required: Determine the number of common shares (a) issued, (b) in treasury, and (c) outstanding at the end of 2017. (Enter your answers in millions.) Answer is complete but not entirely correct. Number of Common Shares (in millions) (a) Issued Stock (b) Treasury Stock (c) Shares Outstanding 755,000 108,000 647,000
Pharoah Corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on January 1, 2021, for $2,530,000. In December 2023, Pharoah declared its first dividend of $840,000. Prepare Pharoah's journal entry to record the issuance of the preferred stock.
At the beginning of 2019, Hardin Company had 280,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 43,000 shares of stock at $21 per share. June 1 Issued a 15% stock dividend. July 1 Issued 9,000 shares of stock at $26 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 84,000 shares as treasury stock at a cost of $29 per share. Nov. 30 Reissued 53,000 treasury shares at a price of $32 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. fill in the blank2. Determine the number of common shares outstanding at December 31, 2019. fill in the blank
Zakaryan Corporation was organized on January 1, 2020. The corporation's governing documents authorized the issue of 100,000 shares of $1 par common stock. During 2020, Zakaryan had the following transactions relating to stockholders' equity: Issued 10,000 shares of common stock at $14 per share. Issued 20,000 shares of common stock at $16 per share. Reported a net income of $200,000. Paid dividends of $100,000. Purchased 3,000 shares of treasury stock at $20 (part of the 20,000 shares issued at $16). What is total shareholders' equity at the end of 2020? O $600,000. O $540,000. O $500,000. O $400,000. 4
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 %…
Benjy Inc has 7,000,000 shares of common stock outstanding on December 31, 2022. An additional 1,000,000 shares of common stock were issued on April 1, 2023, and 500,000 more on July 1, 2023. On October 1, 2023, Benjy declared a 20% stock dividend. On November 1, Benjy purchased 120,000 of its own stock. During the year, Benjy declared a preferred dividend of $100,000. For 2023, Benjy's net income was $11,000,000. Compute EPS (round to the nearest penny if necessary). SHOW ALL COMPUTATIONS.
Whispering Inc. had net income for the current year ending December 31, 2023 of $1,063,260. During the entire year, there were 501,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.60 cumulative shares of which 12,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 107,000 $5.60 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Whispering had outstanding a $1,000,000, 7% bond issued at par in 2012 that was convertible to 22,000 common shares. The company also had outstanding a $1,000,000, 6% bond issued at par in 2013 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Whispering's tax rate is 37%. (a) Calculate the income effect of the dividends for the Class A preferred shares. (b) Your answer is correct. Dividends on Class A preferred shares $ (c) eTextbook and Media Your answer is…
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.
At the beginning of 2023, Valero Energy had 300,000 shares of $5 par value Common Stock outstanding. On August 1, Valero issued another 150,000 shares. Valero's 2023 Net Income was $637,500. In addition, you are given the following portion of the Company's 12/31/2023 Stockholders' Equity section of its Balance Sheet: Preferred Stock (5%, $10 par, 90,000 shares issued and outstanding) $900,000 Calculate Valero Energy's Earnings per Share for 2023 (round to the nearest cent). Select one: O O O a. $1.72 b. $1.63 c. $1.32 d. $1.42 e. $1.76
The annual report for General Mills disclosed that 1 billion shares of common stock have been authorized. At the beginning of 2017, 755 million shares had been issued and the number of shares in treasury stock was 178 million. During 2017, the only common share transactions were that 11 million common shares were reissued from treasury and 27 million common shares were purchased and held as treasury stock. Required: Determine the number of common shares (a) issued, (b) in treasury, and (c) outstanding at the end of 2017. (Enter your answers in millions.) (a) Issued Stock (b) Treasury Stock (c) Shares Outstanding Number of Common Shares (in millions) 194
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…
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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