The shareholders' equity accounts of Cullumber Ltd. on April 1, 2020, the beginning of the fiscal year, are as follows:$8 cumulative preferred shares (17,000 issued)$1,190,000Common shares (480,000 issued)4,800,000Retained earnings1,400,000Total shareholders'equity$7,390,000During the year, the following transactions occurred:2020June1Reacquired 12,000 common shares for $11 per share.July1Issued 46,000 common shares for $12 per share.Sept.30Reacquired 10,000 common shares for $11.50 per share.2021Jan,31Issued 60,000 common shares in exchange for land. The land's fair value was $720,000.Mar.31Profit for the year ended March 31, 2021, was $923,000.(a)Calculate the weighted average number of common shares for the year.Weighted average number of common shares

The weighted average number of common shares is determined by the number of shares outstanding on a…

The shareholders' equity accounts of Cullumber Ltd. on April 1, 2020, the beginning of the fiscal year, are as follows: $8 cumulative preferred shares (17,000 issued) $1,190,000 Common shares (480,000 issued) 4,800,000 Retained earnings 1,400,000 $7,390,000 Total shareholders'equity During the year, the following transactions occurred: 2020 June 1 Reacquired 12,000 common shares for $11 per share. July Issued 46,000 common shares for $12 per share. Sept. 30 Reacquired 10,000 common shares for $11.50 per share. 2021 Jan. 31 Issued 60,000 common shares in exchange for land. The land's fair value was $720,000. Mar. 31 Profit for the year ended March 31, 2021, was $923,000. (a) Calculate the weighted average number of common shares for the year. Weighted average number of common shares

The shareholders' equity accounts of Cullumber Ltd. on April 1, 2020, the beginning of the fiscal year, are as follows: $8 cumulative preferred shares (17,000 issued) $1,190,000 Common shares (480,000 issued) 4,800,000 Retained earnings 1,400,000 $7,390,000 Total shareholders'equity During the year, the following transactions occurred: 2020 June 1 Reacquired 12,000 common shares for $11 per share. July Issued 46,000 common shares for $12 per share. Sept. 30 Reacquired 10,000 common shares for $11.50 per share. 2021 Jan. 31 Issued 60,000 common shares in exchange for land. The land's fair value was $720,000. Mar. 31 Profit for the year ended March 31, 2021, was $923,000. (a) Calculate the weighted average number of common shares for the year. Weighted average number of common shares

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
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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.
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.
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