Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 8, Problem 57PA
1.
To determine
Show the effect of each transaction in the
2.
To determine
Prepare the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
b) An analysis of stockholders' equity of Hahn Corporation as of January 1, 2017, is as follows: Common stock, par value Tk. 20; authorized 100,000 shares; issued and outstanding 90,000 shares, Tk. 1,800,000; Paid-in capital in excess of par, Tk. 700,000; Retained earnings , Tk. 760,000. Hahn uses the cost method of accounting for treasury stock and during 2017 entered into the following transactions: i. Acquired 2,500 shares of its stock for Tk. 75,000. ii. Sold 2,000 treasury shares at Tk. 35 per share. iii. Sold the remaining treasury shares at Tk. 20 per share. Required:Assuming no other equity transactions occurred during 2017, what should Hahn report at December 31, 2017, as total additional paid-in capital?
The following accounts and their balances appear in the ledger of Goodale Properties
Inc. on June 30 of the current year:
$ 3,060,000
Common Stock, $45 par ...
Paid-In Capital from Sale of Treasury Stock.
Paid-In Capital in Excess of Par-Common Stock.
115,000
272,000
Retained Earnings
20,553,000
Treasury Stock....
324,000
Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method
1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 9,000 shares
have been reacquired.
SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $400,700 in 2023 and $335,800 in 2022.
Equity and Liabilities
2023
Share capital-common (136,400 shares issued) $
Retained earnings (Note 1)
Accrued liabilities
Notes payable (current)
Accounts payable
Total equity and liabilities
$
1,242,000
417,700
9,100
76,600
63,300
1,808,700
2022
$ 1,242,000
300,000
6,100
66,700
182,500
$ 1,797,300
Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023.
Required:
1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,439,000 at December 31, 2021.) (Round your answers to 1 decimal place.)
2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.)
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1YTCh. 8 - Prob. 2YTCh. 8 - Prob. 3YTCh. 8 - Prob. 4YTCh. 8 - 1. Compare a stock split and a stock dividend. 2....Ch. 8 - Prob. 6YTCh. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4Q
Ch. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10QCh. 8 - Prob. 11QCh. 8 - Would treasury stock be considered authorized,...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - What are the two sections of the shareholders...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Treasury stock is a. a companys own stock that it...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - The number of shares of stock designated as issued...Ch. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - Prob. 10MCQCh. 8 - Prob. 1SEACh. 8 - Prob. 2SEACh. 8 - Prob. 3SEACh. 8 - Prob. 4SEACh. 8 - Prob. 5SEACh. 8 - Prob. 6SEACh. 8 - Prob. 7SEACh. 8 - Prob. 8SEACh. 8 - Prob. 9SEACh. 8 - Calculate retained earnings balance. (LO 5)....Ch. 8 - Prob. 11SEACh. 8 - Prob. 12SEBCh. 8 - Prob. 13SEBCh. 8 - Prob. 14SEBCh. 8 - Prob. 15SEBCh. 8 - Prob. 16SEBCh. 8 - Prob. 17SEBCh. 8 - Prob. 18SEBCh. 8 - Prob. 19SEBCh. 8 - Prob. 20SEBCh. 8 - Prob. 21SEBCh. 8 - Prob. 22SEBCh. 8 - Prob. 23EACh. 8 - Prob. 24EACh. 8 - Prob. 25EACh. 8 - Prob. 26EACh. 8 - Prob. 27EACh. 8 - Prob. 28EACh. 8 - Prob. 29EACh. 8 - Prob. 30EACh. 8 - Prob. 31EACh. 8 - Analyze equity accounts. (LO 1, 2, 3, 5). The...Ch. 8 - Prob. 33EACh. 8 - Prob. 34EACh. 8 - Prob. 35EACh. 8 - Prob. 36EACh. 8 - Prob. 37EACh. 8 - Prob. 38EACh. 8 - Prob. 39EBCh. 8 - Prob. 40EBCh. 8 - Prob. 41EBCh. 8 - Prob. 42EBCh. 8 - Prob. 43EBCh. 8 - Prob. 44EBCh. 8 - Prob. 45EBCh. 8 - Prob. 46EBCh. 8 - Prob. 47EBCh. 8 - Prob. 48EBCh. 8 - Prob. 49EBCh. 8 - Prob. 50EBCh. 8 - Prob. 51EBCh. 8 - Prob. 52EBCh. 8 - Prob. 53EBCh. 8 - Prob. 54EBCh. 8 - Prob. 55PACh. 8 - Prob. 56PACh. 8 - Prob. 57PACh. 8 - Prob. 58PACh. 8 - Prob. 59PACh. 8 - Prob. 60PACh. 8 - Prob. 61PACh. 8 - Prob. 62PACh. 8 - Prob. 63PBCh. 8 - Prob. 64PBCh. 8 - Prob. 65PBCh. 8 - Prob. 66PBCh. 8 - Prob. 67PBCh. 8 - Prob. 68PBCh. 8 - Prob. 69PBCh. 8 - Prob. 70PBCh. 8 - Prob. 1FSACh. 8 - Prob. 2FSACh. 8 - Prob. 3FSACh. 8 - Prob. 1CTPCh. 8 - Prob. 2CTPCh. 8 - Prob. 1IECh. 8 - Prob. 2IECh. 8 - Prob. 3IECh. 8 - Prob. 4IECh. 8 - Prob. 5IE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Field Company should report total stockholders’ equity on December 31, 2007 at: A. 8,150,000 B. 8,300,000 C. 8,250,000arrow_forwardThe following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: 1 Common stock, $47 par $3,073,800.00 2 Paid-In Capital from Sale of Treasury Stock 119,000.00 3 Paid-In Capital in Excess of Par-Common Stock 261,600.00 4 Retained Earnings 19,185,100.00 5 Treasury Stock 326,800.00 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 8,600 shares have been reacquired. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Accounts and Amount Descriptions Common stock dividends Common stock, $47 par; 80,000 shares authorized, 65,400 issued Excess over par From sale of treasury stock…arrow_forwardHow much is the balance of common stock after the above transactions? 2. How much is the total share premium of CAREBEAR CO on December 31, 2018?arrow_forward
- SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $404,600 in 2023 and $311,800 in 2022. Equity and Liabilities Share capital-common (122,900 shares issued) Retained earnings (Note 1). Accrued liabilities Notes payable (current) Accounts payable Total equity and liabilities 2023 2022 $1,215,000 $1,215,000 413,800 311,300 9,800 6,600 79,700 61,400 56,600 175,500 $1,779,700 $1,765,000 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,469,000 at December 31, 2021.) (Round your answers to 1 decimal place.) 2022 2023 Return on equity % 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.) 2022 2023 Book value per sharearrow_forwardBelow is given the Balance Sheet of Best Ltd. as on 30th June, 2015. I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Equity Share Capital 20,00,000 7% Preference Share Capital 10,00,000 (b) Reserves and Surplus : General Reserve (2) Non-current Liabilities 6% Debentures 4,00,000 6,00,000 (3) Current Liabilities Sundry Creditors 10,00,000 Total Equity and Liabilities 50,00,000 П. Аssets (1) Non-current Assets Fixed Assets at Cost Less : Depreciation Written off 50,00,000 16,00,000 34,00,000 (2) Current Assets Stock Debtors Cash 6,00,000 8,00,000 2,00,000 Total Assets 50,00,000 Following information is available : (i) Fixed assets costing $ 10,00,000 to be installed on 1st July, 2015, would become operative on that date, payment to be made on 30th June, 2016. (ii) The fixed assets-turnover ratio (on the cost of the fixed assets) would be 1.5. The stock-turnover ratio would be 14.4 (calculated on the basis of the average of the opening and closing stocks). The…arrow_forwardPlease give correct Answerarrow_forward
- At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stock-holders' equity section of its balance sheet. Stockholders' equity:Capital stock, $1 par value, 500,000 shares authorized,382,000 issued and outstanding……………………………….. $382,000Additional paid-in capital: capital stock………………………. 4,202,000 Total paid-in capital………………………………………… $4.584,000 Retained earnings……………………………………………... 2.704,600Total stockholders' equity…………………………………….. $7,288,600The transactions relating to stockholders' equity during the year are as follows. Jan.3 Declared a dividend of $1 per share to stockholders of record on January 31,payable on February 15Feb. 15 Paid the cash dividend declared on January 3. Apr. 12 The corporation purchased 6,000 shares of its own capital stock at a price of$40 per share. May 9 Reissued 4,000 shares of the treasury stock at a price of $44 per share. June1 Declared a 5 percent stock dividend to stockholders of record at June…arrow_forwardILLUSTRATION 13. Following is the Balance Sheet of Trymore Engineering Company Ltd. as at 31st March, 2016 : I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : 3,000 Equity Shares of 100 each fully paid 2,000 6% Cumulative Preference Shares of 100 each fully paid (b) Reserves and Surplus: Surplus A/c (Negative Balance) Non-current Liabilities 10% Debentures 3,00,000 2,00,000 (-) 3,00,000 (2) 2,50,000 (3) Current Liabilities Sundry Creditors (Unsecured) Interest due on Debentures 3,50,000 50,000 Total Equity and Liabilities 8,50,000 II. Assets (1) Non-current Assets (a) Fixed Assets : Plant & Machinery 2,00,000 Sundry Fixed Assets Intangible Assets : Goodwill 30,000 80,000 40,000 2,00,000 Patents (b) Investments (Market Value 1,50,000) (2) Current Assets Stock Sundry Debtors : More than 6 months 1,00,000 25,000 Others Cash & Bank Balances 1,25,000 50,000 Total Assets 8,50,000 Note : Preference Dividends are in arrears for 5 years. The Company feels that the worst is…arrow_forwardThe following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: 1 Common stock, $45 par $3,042,000.00 2 Paid-In Capital from Sale of Treasury Stock 115,400.00 3 Paid-In Capital in Excess of Par-Common Stock 270,400.00 4 Retained Earnings 20,585,800.00 5 Treasury Stock 321,900.00 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 8,700 shares have been reacquired. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Accounts and Amount Descriptions Common stock dividends Common stock, $45 par; 80,000 shares authorized, 67,600 issued Excess over par From sale of treasury…arrow_forward
- The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Line Item Description Amount Common Stock, $15 par $154,500 Paid-In Capital from Sale of Treasury Stock 6,700 Paid-In Capital in Excess of Par—Common Stock 12,360 Retained Earnings 255,000 Treasury Stock 9,595 Prepare the "Stockholders' Equity" section of the balance sheet as of June 30. Regarding the common stock, 50,000 shares are authorized, and 505 shares have been reacquired.arrow_forwardBelton, Inc. had the following transactions in 2018, its first year of operations: Issued 37,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $21.00 per share. Earned net income of $72,000. Paid no dividends. At the end of 2018, what is the total amount of paid-in capital? A. $777,000 B. $37,000 C. $849,000 D. $72,000arrow_forwardPrepare journal entries to record the preceding transactions.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License