The following information was taken from the accounting records of Sa Gyung Joon Inc. for 2020. Proceeds from issuance of preference shares P4,000,000 Dividends paid on preference shares 400,000 Bonds payable converted to ordinary shares 2,000,000 Payment for purchase of machinery 500,000 Proceeds from sale of plant building 1,200,000 Retirement of bonds payable 2,500,000 2% bonus issue on ordinary shares 300,000 Purchase of ordinary treasury shares 120,000 Payment for purchase of debt investment at amortized cost 450,000 Gain on sale of plant building 200,000 How much is the net cash flow from investing activities during 2020? A. P250,000 B. P450,000 C. P700,000 D. P750,000

The following information was taken from the accounting records of Sa Gyung Joon Inc. for 2020. Proceeds from issuance of preference shares P4,000,000 Dividends paid on preference shares 400,000 Bonds payable converted to ordinary shares 2,000,000 Payment for purchase of machinery 500,000 Proceeds from sale of plant building 1,200,000 Retirement of bonds payable 2,500,000 2% bonus issue on ordinary shares 300,000 Purchase of ordinary treasury shares 120,000 Payment for purchase of debt investment at amortized cost 450,000 Gain on sale of plant building 200,000 How much is the net cash flow from investing activities during 2020? A. P250,000 B. P450,000 C. P700,000 D. P750,000

Name: The following information was taken from the accounting records of Sa
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Description: The following information was taken from the accounting records of Sa Gyung Joon Inc. for 2020.Proceeds from issuance of preference shares P4,000,000Dividends paid on preference shares 400,000Bonds payable converted to ordinary shares 2,000,000Payme

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
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.
Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
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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?
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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. 6.73
The following information was taken from the accounting records of the company for 2020. Proceeds from issuance of preference shares P4,000,000 Dividends paid on preference shares 400,000 Bonds payable converted to ordinary shares 2,000,000 P ayment for purchase of machinery 500,000 Proceeds from sale of plant building 1,200,000 Retirement of bonds payable 2,500,000 2% bonus issue on ordinary shares 300,000 Purchase of ordinary treasury shares 120,000 Payment for purchase of debtinvestmentat amortized cost 450,000 Gain on sale of plant building 200,000 How much is the net cash flow from investing activities during 2020?
San Miguel Corporation provided the following balances on December 31, 2021: Accounts payable 500,000Accrued taxes 100,000Ordinary share capital 5,000,000Dividends - ordinary share 1,000,000Dividends - preference share 500,000Mortgage payable (P500,000 due in 6 months) 4,000,000Note payable, due January 31, 2023 2,000,000Share premium 500,000Preference share capital 3,000,000Premium on note payable 200,000Income summary - credit balance 4,000,000Retained earnings - January 1 2,500,000Unamortized issue cost on note payable 50,000Unearned rent income 150,000 1. What is the amount of noncurrent liabilities on December 31, 2021? 2. What is the amount of retained earnings on December 31, 2021?a. 6,500,000b. 2,500,000c. 1,000,000d. 5,000,000 3. What is the total shareholders’ equity on December 31, 2021?
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The following information was taken from the accounting records of BT21, Inc. for 2021:· Proceeds from issuance of preferred shares, P800,000· Bonds payable converted to ordinary shares, P200,000· Proceeds from sale of plant building, P1,000,000· Gain on sale of plant building, P100,000· Dividends paid on preference shares P50,000· Payment for purchase of machinery, P200,000· 2% bonus issue on ordinary shares, P300,000How much is the net cash flow from investing activities and cash flow from investing activities during 2021, respectively? A. P800,000; P750,000 B. P800,000; P950,000 C. P900,000; P750,000 D. P900,000; P950,000