Diamond Corporation was organized on January 3, 2021. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2021, Diamond had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported net income of $100,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2021? A. $420,000. B. $370,000. C. $470,000
Q: FSA 5-2 Comparative Analysis LO A3 Comparative figures for Apple and Google follow. $ millions…
A: Inventory asset is one of important current asset being used in business. Inventory turnover is one…
Q: You're response for A was correct. B is supposed to be the times-burden-covered ratio for next year…
A: In order to determine the earning per share, the earnings available to common shareholders are…
Q: The equity section from the December 31, 2023 balance sheet of Kentucky Corporation appeared as…
A: A statement of changes in equity is a financial statement that outlines all of the shareholder…
Q: Complete the following the statement by choosing the correct word from the dropdown menu.…
A: Accounts receivables are those customer accounts to whom business has made credit sales on account…
Q: Actual direct labor hours worked 1,360 500 How much manufacturing overhead was applied to Job Y?
A: Lets understand the basics.Predetermined rate means an indirect cost rate.Predetermined overhead…
Q: Mary has saved enough money to make a $10,000 down payment on a $3 finance the purchase with an auto…
A: Monthly payment refers to an amount that is paid at every month for the repayment of loan amount…
Q: Blum Co. has the following balance sheet: 2023 Cash A/R Inventory L/T Investments Equipment Accum…
A: Cash flow statement is the one which is prepared by the entity for the purpose of reporting the cash…
Q: Communication (balance sheet): Interest Payable is reported in the balance sheet and represents:…
A: Interest Payable:- It is the amount of interest that the company has accumulated but has not yet…
Q: Required a. Prepare a Cost of Production Report for the Conversion Department for July. b. Prepare a…
A: Input Output UnitsValueUnitsCompeletedEquivalent Units Opening6000077250Transferred to the…
Q: Exercise 13-47 (Static) Budgeting in a Service Organization (LO 13-5, 6) Lambie Custodial Services…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: Coronado Industries produces a product that requires 3.70 pounds of materials per unit. The…
A: Material is the inventory purchased by the company in order to produce the product for the company.…
Q: Question 25 A taxpayer in the 22% federal marginal tax rate is considering two investments and…
A: The binds are the debt instrument that is issued by the corporation or government entities. The…
Q: A summary record of each person's earnings, deductions, and net pay is called a Select one: a.…
A: Employee earnings means the amount of money earned by an employee during a particular period. It is…
Q: In your initial audit of the financial statements of BOLT CO., you discovered the following…
A: Intangible Assets while recognition which is constructed inhouse The cost related upto establishing…
Q: Required information [The following information applies to the questions displayed below.] Lauder…
A: Activity-Based Costing (ABC) is a costing methodology used in managerial accounting to assign costs…
Q: Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following…
A: As per the requirement, questions 4,5,6, and 7 are solved.Cost refers to an expense used for…
Q: Gold Inc. sold the rights to use one of its patented processes that will result in cash receipts of…
A: Present Value is the Value of one Dollar as of today which will be received in Future. For the…
Q: The following trial balance was extracted from the books of Rose Martins, a sole trader on 31…
A: Financial statements are the records of the companies financial position. It includes Profit and…
Q: Entries for issuing bonds and amortizing discount by straight-line method On the first day of its…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding equivalent…
Q: ercise 5-16 (Algo) Lower of cost or market LO P2 tinez Company's ending inventory includes the…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…
Q: The number of shares traded in the market for Company (S) amounted to 100,000 ordinary shares with a…
A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…
Q: Tina is a tax resident in Country A. She acquired the following assets in 2017: (a) two houses…
A: The profit or financial gain generated when an asset is sold for a price more than its original…
Q: Mary Matthews made $1,150 during a biweekly pay period. Only social security (fully taxable) and…
A: Take-home pay is the amount that is calculated to know the net amount which is received after the…
Q: Below are amounts (in millions) from three companies' annual reports. Ending Accounts Walco TarMart…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of various…
Q: Concord Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for…
A: Lets understand the basics.When decision of make or buy needs to take then need to choose option…
Q: For all of 2023, Olynyk Corp. had 20,000 shares of $100 par value, 7% cumulative preferred stock and…
A: The dividend is considered a part of the distributable profit distributed by the company to its…
Q: The Marino Company has provided you the following information pertaining to its defined benefit…
A: Projected benefit obligation refers to the concept of computing the sum value of money a company…
Q: Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following…
A: It includes expenses incurred on assets up to making assets ready to use (not put to use). So, that…
Q: Vaughn Company is a very profitable small business. It has not, however, given much consideration to…
A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…
Q: Exercise 11-46 (Algo) Net Realizable Value Method with By-Products (LO 11-3, 5) Denver Fabricators…
A: The expense that manufacturers suffer while producing several goods or processes is referred to as…
Q: Multiple Choice Question The officer responsible for managing the firm's cash flows is the ______.…
A: In accounting, a treasurer refers to an individual or position within an organization that is…
Q: Mary Jarvi a single
A: As per Internal Revenue Service federal tax liability means how much amount of…
Q: P&G Corporation, a C corporation, sold the following business use assets in 2022. Compute the amount…
A: Ordinary gains and losses are different from capital gains and losses, which result from the sale of…
Q: The adjusted trial balance of Liberty Company included the following accounts for the current year:…
A: Net income is a significant metric for lenders, shareholders, and stakeholders since it demonstrates…
Q: Preparing a consolidated income statement-Equity method with noncontrolling interest, AAP and…
A: Consolidated financial statements are a group of enterprises' financial statements presented as if…
Q: Dividing Profit or Loss: Allocated using Salaries, Interest Allowance, & Fixed Ratio Jackson and…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: Hi studentSince there are multiple subparts, we will answer only first three subparts.Method of…
Q: Match the type of expense associated with a multi-step income statement with the appropriate…
A: A multi-step income statement is a financial statement that provides a detailed breakdown of a…
Q: The following data are accumulated by Geddes Company in evaluating the purchase of $131,900 of…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Use the following information to answer all questions Category Accounts payable Accounts receivable…
A: Cash Accounts is an account that represent cash available in the business. Cash is a highly liquid…
Q: Weighted Average Cost Method 1. Light Company uses a perpetual inventory system. The company began…
A: The ending inventory includes the stock of units that remain unsold at the end of the accounting…
Q: The net income reported on the income statement for the current year was $139,800. Depreciation…
A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…
Q: Crane Company has a new product going on the market next year. The following data are projections…
A: The net income is calculated as difference between sales and total costs. The markup % is calculated…
Q: Sales Cost of goods sold KLYNE CORPORATION Income Statement For the Year Ending December 31, 2020…
A: Breakeven point is one of the useful calculation done in cost volume profit analysis. Breakeven…
Q: The following is a list of items for Witts Company's 2019 statement of cash flows: receipt from…
A: Cash flow statement shows all the cash transactions made by the company during the year. The cash…
Q: What is a basic precept under the independence rules that always applies when a firm performs…
A: Independence is a core concept in auditing that refers to the auditor's ability to perform their…
Q: E9-17 (Algo) (Supplement 9A) Calculating and Reporting Depletion [LO 9-S1] Salamander Company (SC)…
A: The depletion method is followed by companies that have assets like natural resources like oil, gas,…
Q: On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson,…
A: Consolidation refers to the process of combining the financial statements of two or more companies…
Q: The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1…
A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…
Step by step
Solved in 3 steps
- 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.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.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.
- 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.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
- James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.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?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%.
- St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and 5,000,000 shares of $1 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: A. Issued 15,000 shares of 20 par common stock at 30, receiving cash. B. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. C. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. D. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. E. Paid the cash dividends declared in (D). F. Purchased 8,000 shares of treasury common stock at 33 per share. G. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. Recorded the payment of semiannual interest on the bonds issued in (C) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock, 80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.
