On January 1, 2022, the stockholders' equity section of Bridgeport Corporation shows common stock ($4 par value) $1,200,000; paid in capital in excess of par $1,000,000; and retained earnings $1,240,000. During the year, the following treasury stock transactions occurred. Mar. July 1 Sept. 1 1 Purchased 50,000 shares for cash at $15 per share. Sold 11,000 treasury shares for cash at $17 per share. Sold 9,500 treasury shares for cash at $14 per share.
Q: Opus Limited is a CCPC. In 2023, the company received the following dividends: $ 35,000 55,000…
A: A dividend is a portion of a company's profits and retained earnings that it pays to its…
Q: Equivalent Units of Conversion Costs The Rolling Department of Blackrock Steel Company had 800 tons…
A: The equivalent cost can be calculated by dividing the total cost with equivalent units. Production…
Q: What are the 4 basic set of financial statements, provide their basic purpose in your response? What…
A: Financial statements are formal records of a company's financial activities and position, including…
Q: Your client, Albert Lee Leasing Company, is preparing a contract to lease a machine to Souvenirs…
A: The annuity factor of 12% for 25 years is determined to be 7.8431, based on the factor table. Thus,…
Q: 8. On August, 20th, Kobayashi company uses $1,410 of its cash to purchase supplies and August 31,…
A: The basic equation used for the reporting of all the business transactions of an entity is referred…
Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…
A: The payments and bonuses that employees get in addition to their normal income or salaries are…
Q: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Fixed Manufacturing Overhead:Fixed Manufacturing overhead is the amount remains the same for the…
Q: a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1.…
A: Return on Net Operating Assets (RNOA) is a financial metric Ratio used to evaluate the profitability…
Q: An investor wants to do capital budgeting for his new investment project. He has the following…
A: To calculate the after-tax terminal value of the investment, we need to consider the depreciation…
Q: Wetherby Plc purchased a machine on 1 July 2022 for £500,000. It is being depreciated on a…
A: The objective of the question is to calculate the depreciation expense for the machine and the…
Q: A company that uses an activity-based costing system provided the following data. Activity Cost Pool…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Keesha Company borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%,…
A: The note matures 90 days after November 1. To find the maturity date, you add 90 days to November…
Q: A machine costing $956,250 with a five-year useful life and a $95,625 salvage value is installed in…
A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…
Q: Explain the usefulness of the concept of "profit' to users of accounting
A: Profit is the financial gain or advantage achieved by a business or individual when the revenue…
Q: Equivalent Units of Production The Converting Department of Comfy Touch Towel and Tissue Company had…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: Del Gato Clinic's cash account shows an $17,223 debit balance and its bank statement shows $17,205…
A: Disparities between the amount indicated in the account holder's records and the cash balance…
Q: Kubin Company's relevant range of production is 16,000 to 24,500 units. When it produces and sells…
A: The variable cost per unit remains constant at every level of production. The fixed costs in total…
Q: White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370,…
A: An item of property, plant and equipment that qualifies for recognition as anasset shall be measured…
Q: 1. Record the issuance of an installment note payable under each option. 2. Record the payments for…
A: Notes payable, which are also known as promissory notes, are a kind of debt that someone agrees to…
Q: A partnership is considering possible liquidation because one of the partners (Bell) is personally…
A: Partnership : Arrangement between two or more people whereby they agree to manage business…
Q: Assume you are the manager of this area in a small firm. What internal controls and segregation of…
A: complete solution given belowExplanation:As a manager, it's crucial to implement internal controls…
Q: View Policies Current Attempt in Progress Swifty Corporation borrowed $660000 from Liber Bank on…
A: Installment is the sum of principal and interest. In other words interest is the difference between…
Q: [The following information applies to the questions displayed below.] Data for Hermann Corporation…
A: In the given question, it is specified that if higher quality material is used:· Variable cost…
Q: Faraday Electronic Service repairs stereos and DVD players. During the year, Faraday engaged in the…
A: As per the accrual concept of accounting, we need to record all the expenses and incomes related to…
Q: Entry for issuing materials Instructions Instructions Materials issued are as follows: Requisition…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: The Pronghorn Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due January 1,…
A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…
Q: All of the following are likely to be used as a cost allocation base in activity-based costing…
A: Activity-based costing( ABC) is a going system used in directorial accounting that assigns costs…
Q: Describe the audit UK and globally, discuss recent developments concerning this gap and debate the…
A: The audit expectations gap refers to the disparity between what the public expects from an audit and…
Q: Dutch Oven is a bakery company. All processing is in batches of 6 dozen. For March, there were no…
A: Backflush is the costing is used to record the inventory-related costs only after when production is…
Q: During September, Clendennen Corporation budgeted for 39,000 customers, but actually served 37,000…
A: Flexible budget is the budget which is flexible in nature and is prepared for the actual units. This…
Q: Required: 1. Prepare the journal entries to record income tax expense for the first and second years…
A: 1st yearIncome before income tax a/c$436,000 To Depreciation A/c$160,000…
Q: Consider the following financial statement information: Item Beginning Year Ending Inventory € 9.780…
A: Average Inventory for the year = (Inventory at the beginning + Inventory at the end) /2…
Q: The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin…
A: Contribution margin is the difference between the sales and variable cost hence the contribution…
Q: Calam manufacturing purchases land for 447,000 as part of his plans to build a new plant the company…
A: Costs Relate to the expenses incurred by a business or existent in the process of producing goods,…
Q: Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Assume receivables of $20,000 at the start of the January are all collected during the month; if…
A: When a sale is made and cash is received at the time of sale it is referred to as cash sale, however…
Q: Hemming Company reported the following current-year purchases and sales for its only product. Units…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: Problem 4-14 points the December 31, 2023 year-end closing entries using the following adjusted…
A: The objective of this question is to prepare the year-end closing entries for Billi Sol repair…
Q: Auto Safe's job cost sheet for Job A40 shows that the total cost to add security features to a car…
A: Journal Entry:— It is an act of recording transactions in books of account when transaction…
Q: Lord Company purchased a machine on January 2, Year 1, for $70,000. The machine had an expected…
A: Depreciation -Depreciation is the reduction in a tangible asset's price that occurs when the asset…
Q: During the last decades it has not been unusual for the premium paid to acquire a company to be…
A: In accordance with IAS38, intangible assets refers to intangible assets which exist without physical…
Q: Atmel Inc. manufactures and sells two products. Data with regard to these products are given below.…
A: Solution:Total receiving costs allocated to product A = receiving costs / total receiving orders *…
Q: Kerevi Ltd leases a machine for making dog crates from the Rennie Bank on 1 July 2020. The lease is…
A: A lease is an agreement between two parties where the lessor gives the right to use the asset to the…
Q: Required information Use the following information for the Quick Studies 12-13 below. (Algo) [The…
A: Journal Entry:— It is an act of recording transactions in books of account when transaction…
Q: On January 1, 2020, Blindo Corp. issued ten-year, 12% bonds with a face value of $ 500,000, with…
A: Bonds are the securities issued by a company in order to raise funds from investors. It includes…
Q: Units to be Assigned Costs Blackrock Steel Company has two departments, Casting and Rolling. In the…
A: Process costing is used in an organization where a similar kind of product is produced and goods are…
Q: Find the interest rates earned on each of the following. Round your answers to the nearest whole…
A: The objective of the question is to calculate the interest rate earned on a loan of $680 that is…
Q: Thornton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company…
A: The absorption based costing is the method through which the company determines the indirect cost…
Q: Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items…
A: Relevant cost are avoidable cost and are affected by specific business decisions. In make or buy…
Q: Required information Problem 8-77 (LO 8-5) (Algo) [The following information applies to the…
A: When a taxpayer does not pay enough of their anticipated taxes or pays their taxes late, the IRS may…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
- 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.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.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. 3,370,000
- The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.