Voko Company was organized on May 25, 2020 and was authorized to issue 250,000 shares of Rs 15 or and 10,000 shares of 8% Preferred Stock, par value Rs 50. The following were the Capital Stock transactions through September 15, 2020: Issued 50,000 shares of Common Stock to an investment group at Rs 20, Assets were obtained from Tom Co. in exchange for 75,000 Shares of Commc Stock. The assets were appraised as follows: June 1: June 15: Rs 300,000 Rs 75,000 Rs 475,000 Rs 375,000 Merchandize Inventory Furniture & Fixtures Machinery & Equipment Land Subscriptions were received for 100,000 Shares of Common Stock at Rs 25 for 5,000 Shares of Preferred 8% Stock at Rs 55. Each class of Stock is t paid in full within 90 days, Payment was received in full against 90,000 Shares of Common Stock and a 5,000 Shares of Preferred against the above subscriptions. Nothing is exp to be received against the remaining 10,000 Shares of the Common cancelled. July 1: Sep 15: quired: 1) Give the journal entries to record the preceding transactions, tho rorults of the preceding transactions.

Voko Company was organized on May 25, 2020 and was authorized to issue 250,000 shares of Rs 15 or and 10,000 shares of 8% Preferred Stock, par value Rs 50. The following were the Capital Stock transactions through September 15, 2020: Issued 50,000 shares of Common Stock to an investment group at Rs 20, Assets were obtained from Tom Co. in exchange for 75,000 Shares of Commc Stock. The assets were appraised as follows: June 1: June 15: Rs 300,000 Rs 75,000 Rs 475,000 Rs 375,000 Merchandize Inventory Furniture & Fixtures Machinery & Equipment Land Subscriptions were received for 100,000 Shares of Common Stock at Rs 25 for 5,000 Shares of Preferred 8% Stock at Rs 55. Each class of Stock is t paid in full within 90 days, Payment was received in full against 90,000 Shares of Common Stock and a 5,000 Shares of Preferred against the above subscriptions. Nothing is exp to be received against the remaining 10,000 Shares of the Common cancelled. July 1: Sep 15: quired: 1) Give the journal entries to record the preceding transactions, tho rorults of the preceding transactions.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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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?
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
SHEA Corp. was organized on January 2020. Share capital transactions for the year are shown below: Jan.-5- Authorized to issue 50,000 shares of P10 par value ordinary share. 10-Issued 12,500 shares at P11 per share. Mar.- 25- Issued 500 shares for legal services valued at P6,000. Sept.-30-Issued 2,500 shares for a tract of land valued at P65,000. The journal entry to record the transaction on March 25 includes Select the correct response: O a credit to Share Premium of P6,000 Oa debit to Organization Cost of P6,000 O a credit to Share Capital of P6,000 O a debit to Cash of P6,000 < Previous 3ms 44Hz
Required: A. Prepare journal entries to record the transactions.B. Present the shareholders' equity on December 31, 2020. Show your detailed solutions.
meric Response Sample Corp. was organized on January 1, 2021, with authorized capital of 100,000 shares of P55 par value Ordinary Share Capital. Eighty-five thousand (85,000) shares were issued for cash at P77 per share. During the year, the company earned a profit of P1,250,000 and distributed dividends of P650,000. Instructions: Based on the given information, compute for each of the items listed below. 1. Balance of Retained Earnings account as of December 31, 2021. 2. Balance of ordinary share capital account as of December 31, 2021. 3. Total contributed capital as of December 31, 2021. 4. Total additional paid-in capital as of December 31, 2021. 5. Total shareholders' equity as of December 31, 2021.
Entity A invested in 222,000 shares of a listed company on 1 November 2019 at a cost of $4.25 per share. On 31 December 2019, the shares have a market value of $4.73. The shares are held for trading. The end of the reporting period is 31 December. REQUIRED: (1) Measure the gain or loss of remeasurement of the shares recognised in the Statement of Profit or Loss on 31 December 2019. (2) Measure the value of the shares recognised in the Statement of Financial Position on 31 December 2019.
ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
BananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a par value of P6 per share During 2020, the corporation had the following capital transactions: January-5. July-28. December-31 Sold the 30,000 shares held in treasury at P18 per share Issued 225,000 share at P10 per share Purchased 30,000 shares at P11 per share What is the total amount of Share Premium as of December 31.2020? Select the correct response: O P1,110,000 O PO P900,000 O P690,000 ( Previous Conti