The San Diego Corporation reported profit of year ended December 31, 2018. At the beginning of the year, the company had 200,000 ordinary shares outstanding. It issued an additional 30,000 shares on July 1, 2018 and reacquired as treasury shares 6,000 shares on November 1, 2018.

The San Diego Corporation reported profit of year ended December 31, 2018. At the beginning of the year, the company had 200,000 ordinary shares outstanding. It issued an additional 30,000 shares on July 1, 2018 and reacquired as treasury shares 6,000 shares on November 1, 2018.

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 Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $170,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.70 per share. During the current year, Sneer had 1 million common shares authorized; 370,000 shares had been issued; and 163,000 shares were in treasury stock. The opening balance in Retained Earnings was $870,000 and Net Income for the current year was $370,000. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31. 3. Prepare a journal entry to close the dividends account.
On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019.
On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000. On March 1, 2021, the company purchased 6,000 shares of its common stock for $7 per share for the treasury. On June 1, 2021, 1,500 of the treasury shares are sold for $10 per share. On September 1, 2021, 3,000 treasury shares are sold at $5 per share.Journalize the stock transactions of Dreamy Company in 2021.
Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity. d) During the year, customer advances of $220,000 were received; $110,000 of this amount was earned by December 31, 2018. e) A 10% bonds payable of 1,000,000 was issued on December 31, 2018, due on December 31, 2023. f) Treasury stock of $55,000 has been recorded at cost. Instructions:For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2: Reacquired 71,000 shares at $12.10. March 17: Sold 21,000 shares at $14.05. May 17: Sold 26,000 shares at $8.05. 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.
Springer Company was incorporated on January 1, 2022, at which time 500,000 shares of $1 par value common stock were authorized, and 210,000 of these shares were issued for $9 per share. Net income for the year ended December 31, 2022, was $1,900,000. Springer Company's board of directors declared dividends of $1.40 per share of common stock on December 31, 2022, payable on January 27, 2023. The entry to record the payment of dividends on January 27, 2023 is: Multiple Choice O Debit Credit Debit Credit Debit Credit Debit Credit Retained Earnings Dividends Payable Cash Dividends Payable Retained Earnings Cash Dividends Payable Cash 294,000 294,000 294,000 294,000 294,000 294,000 294,000 294,000
Ringmeup Inc. had net income of $151,000 for the year ended December 31, 2019. At the beginning of the year, 36,000 shares of common stock were outstanding. On May 1, an additional 12,000 shares were issued. On December 1, the company purchased 4,500 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, Ringmeup paid the annual dividend on the 6,000 shares of 4.45%, $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, 2019. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Earnings per share
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
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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 January 1, 2020, Blossom Corporation had 106,000 shares of no-par common stock issued. 5,000 shares are held as treasury stock. The stock has a stated value of$5per share. During the year, the following occurred. Apr.1 issued 10,000 additional shares of common stock for$16per share. June 15 Declared a cash dividend of$1per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Purchased 1,800 additional shares of common stock for$15per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.30 per share to stockholders of record on December 31. (a) Prepare the entries, if any, on each of the three dividend dates (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 0 for the amounts, List all debit entries before credit entries.
The Murphy Corporation is authorized to issue 500,000 shares of $1 par value common stock. During 2019, the company has the following stock transactions. Jan. 15 Issued 200,000 shares of stock at $6 per share. Sept. 5 Purchased 30,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2020. Instructions Journalize the transactions for the Murphy Corporation on journal paper. OMIT explanations