Vaughn, Inc. had the following equity investment portfolio at January 1, 2025. Evers Company Rogers Company Chance Company Equity investments @ cost Fair value adjustment Equity investments @fair value During 2025, the following transactions took place. 1. 2. 3. 4. 5. During 2026, the following transactions took place. 6. 1,000 shares @ $15 each 910 shares @ $21 each 480 shares @ $9 each 7. 8. $15,000 19,110 4,320 38,430 (7,350) $31,080 On March 1, Rogers Company paid a $2 per share dividend. On April 30, Vaughn, Inc. sold 300 shares of Chance Company for $12 per share. On May 15, Vaughn, Inc. purchased 110 more shares of Evers Company stock at $16 per share. At December 31, 2025, the stocks had the following price per share values: Evers $17, Rogers $20, and Chance On February 1, Vaughn, Inc. sold the remaining Chance shares for $8 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2026, the stocks had the following price per share values: Evers $19 and Rogers $22.

Vaughn, Inc. had the following equity investment portfolio at January 1, 2025. Evers Company Rogers Company Chance Company Equity investments @ cost Fair value adjustment Equity investments @fair value During 2025, the following transactions took place. 1. 2. 3. 4. 5. During 2026, the following transactions took place. 6. 1,000 shares @ $15 each 910 shares @ $21 each 480 shares @ $9 each 7. 8. $15,000 19,110 4,320 38,430 (7,350) $31,080 On March 1, Rogers Company paid a $2 per share dividend. On April 30, Vaughn, Inc. sold 300 shares of Chance Company for $12 per share. On May 15, Vaughn, Inc. purchased 110 more shares of Evers Company stock at $16 per share. At December 31, 2025, the stocks had the following price per share values: Evers $17, Rogers $20, and Chance On February 1, Vaughn, Inc. sold the remaining Chance shares for $8 per share. On March 1, Rogers Company paid a $2 per share dividend. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. At December 31, 2026, the stocks had the following price per share values: Evers $19 and Rogers $22.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
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