Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.8P
Prepare Statement of Stockholders’ Equity. Use the information in P5-3 for Right Angle Manufacturing Company and the following additional information provided to complete the requirements.
Right Angle issued $20,000 of no-par common stock in the current year The company also repurchased $15,000 of its shares at the end of the reporting period. The company is subject to a 40% income tax rate The beginning balance of common stock (no par) was $75,030.
Required:
- a. Prepare a statement of
stockholders equity for the year ended December 31. - b. Prepare a partial
balance sheet to show the ending balances in the stockholders’ equity section.
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Based on the below information prepare a statement of shareholders' equity in a proper format for Rams Ltd. for the year ended December 31, 2020. Rams Ltd. reported the following balances at
January 1, 2020: Common shares.
$370,000 Preferred shares.
74,000 Contributed surplus
65,000 Retained earnings..
70,000 Accumulated other comprehensive
income.
71,000 Rams' corporate tax rate
31.5% During the year, Rams performed the following:
1. The cumulative effect of the change from straight-line to accelerated depreciation resulted in a reduction to retained earnings of $35,000, before tax. 2. Issued common shares for a proceed of
$73,000. 3. Retired 25% of preferred shares outstanding. 4. Earned net income of $496,000 and, 5. Generated other comprehensive income of $22,000. 6. Declared total dividend of $198,400.
Prepare a statement of shareholders' equity in a proper format for Rams Ltd. for the year ended December 31, 2020.
The following information was extracted from the records of Cascade Company at the end of the fiscal yea
were completed:
Common stock ($0.01 par value; 230,000 shares authorized, 55,500 shares
issued, 53,500 shares outstanding)
Additional paid-in capital
Dividends declared and paid during the year
Retained earnings at the end of the year
Treasury stock at cost (2,000 shares)
Net income
Current stock price
Required:
1. Prepare the stockholders' equity section of the balance sheet at the end of the fiscal year.
2. Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Note: Do not round your intermediate calculations. Round Dividend yield ratio to 2 decimal places.
Dividend yield ratio
Number of shares
%
$ 555
459,000
23,500
315,000
(16;500)
$ 96,500
$ 10
>
Hever Rainbow Company provides the following information regarding its most recent balance sheet.
(Click the icon to view the data.)
Hever Rainbow acquired 22,000 shares of common stock in the open market at a price of $18 per share and retired the shares. What is the journal entry to record this transaction? (Record debits first, then
credits. Exclude explanations from any journal entries.)
Account
Current Year
Data table
Stockholders' Equity
Common stock, $2 par value, 495,000 shares authorized, 177,500
shares issued and outstanding
$
355,000
Additional paid-in capital in excess of par - common
887,500
Additional paid-in capital - retired shares
Retained earnings
214,500
1,743,000
$
3,200,000
Total stockholders' equity
Chapter 5 Solutions
Intermediate Accounting
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Earnings per share (EPS), basic and diluted; Author: Bionic Turtle;https://www.youtube.com/watch?v=i2IJTpvZmH4;License: Standard Youtube License