Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 11, Problem 13E
1.
To determine
Prepare the necessary journal entries.
2.
To determine
Record the necessary closing entry, assuming that no other dividends were declared.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Problem 1
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation
during the period 2023 to 2025. At December 31, 2022, the corporation's accounts included (in
thousands):
Ordinary share capital, P1 par
Share premium
105,000
630,000
Retained earnings
970,000
a. On November 1, 2023, the board of directors declared a cash dividend of PO 80 per share on its
ordinary shares, payable to shareholders of record on November 15, to be paid on December 1.
b. On March 1, 2024, the board of directors declared a property dividend consisting of corporate bonds
of Warner Corporation that Branch-Ricki was holding as an investment. The bonds had a fair value of
P1.6 million, but were purchased two years previously for P1.3 million. Because they were intended
to be held to maturity, the bonds had not been previously written up. The property dividend was
payable to shareholders of record on March 13, to be distributed on April 5. The fair value of the…
The Mike Corporation’s statement of financial position shows total shareholders’ equity of P3,150,000 as of December 31, 2016.
a. What is the book value per share, assuming that the company has only one class of share capital outstanding consisting of 50,000, P10 par ordinary shares?A. P10.00B. P63.00C. P70.20D. P73.00
b. What is the book value per ordinary share assuming that the company has two classes of share capital outstanding consisting of the following: 5,000, P100 par value preference shares with a liquidation value of P120 per share and 50,000, P10 par value ordinary shares?A. P10.00B. P51.00C. P53.00D. P63.00
Case study 3: Victory SAOG is registered with an authorized capital of OMR 50 million ordinary shares of 100 baiza each. The company had issued and paid up capital of OMR 33 million. In the year 2017 Victory SAOG has an outlined share repurchase program which would enable the company to repurchase at least 10 per cent of its outstanding shares. The company had an opening balance of OMR 55 million in its retained earnings account. After completing the required formalities for such repurchase in the vear 2017, the company was able to repurchase the 19.8 million shares valued at OMR 31,680,000 in the month of August. Later in the year 2019 the company was able to repurchase another 10 million shares for OMR 15 million in July.
The following are the profits earned by the company over the period of 2017 to 2019: OMR in Millions'
2017: 110
2018: 150
2019: 160
The company decided to distribute dividends as mentioned below:
#Interim dividend:
2017: Nil
2018:5%
2019:Nil
#Final dividend:…
Chapter 11 Solutions
Fundamentals Of Financial Accounting
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Explain each of the following terms: (a)...Ch. 11 - What are the differences between common stock and...Ch. 11 - What is the distinction between par value and...Ch. 11 - What are the usual characteristics of preferred...Ch. 11 - What items are included in Accumulated Other...Ch. 11 - What is treasury stock? Why do corporations...Ch. 11 - How is treasury stock reported on the balance...
Ch. 11 - What are the two financial requirements to support...Ch. 11 - What is the difference between cumulative and...Ch. 11 - What is a stock dividend? How does a stock...Ch. 11 - What are the primary reasons for issuing a stock...Ch. 11 - Your company has been very profitable and expects...Ch. 11 - Identify and explain four important dates with...Ch. 11 - Prob. 17QCh. 11 - How do stock repurchases affect the EPS and ROE...Ch. 11 - What is one interpretation of a high P/E ratio?Ch. 11 - Prob. 20QCh. 11 - Which feature is not applicable to common stock...Ch. 11 - Which statement regarding treasury stock is false?...Ch. 11 - Which of the following statements about stock...Ch. 11 - Which of the following is ordered from the largest...Ch. 11 - Prob. 5MCCh. 11 - A journal entry is not recorded on what date? a....Ch. 11 - Prob. 7MCCh. 11 - Prob. 8MCCh. 11 - Prob. 9MCCh. 11 - Prob. 10MCCh. 11 - Equity versus Debt Financing Indicate whether each...Ch. 11 - Computing the Number of Issued Shares Face 2 Face...Ch. 11 - Computing the Number of Unissued Shares The...Ch. 11 - Analyzing and Recording the Issuance of Common...Ch. 11 - Analyzing and Recording the Issuance of No-Par...Ch. 11 - Determining the Effects of Stock Issuance and...Ch. 11 - Determining the Amount of a Dividend Netpass...Ch. 11 - Recording Dividends On May 20, the board of...Ch. 11 - Determining the Impact of a Stock Dividend Sturdy...Ch. 11 - Determining the Impact of a Stock Split Complete...Ch. 11 - Determining the Amount of a Preferred Dividend...Ch. 11 - Determining the Amount of a Preferred Dividend...Ch. 11 - Calculating and Interpreting Earnings per Share...Ch. 11 - Inferring Financial Information Using the P/E...Ch. 11 - (Supplement 11A) Comparing Owner's Equity to...Ch. 11 - (Supplement 11B) Recording a Stock Dividend To...Ch. 11 - Computing Shares Outstanding The 2016 annual...Ch. 11 - Reporting Stockholders' Equity and Determining...Ch. 11 - Preparing the Stockholders' Equity Section of the...Ch. 11 - Reporting the Stockholders' Equity Section of the...Ch. 11 - Determining the Effects of the Issuance of Common...Ch. 11 - Recording and Reporting Stockholders' Equity...Ch. 11 - Finding Amounts Missing from the Stockholders'...Ch. 11 - Recording Treasury Stock Transactions and...Ch. 11 - Prob. 9ECh. 11 - Computing Dividends on Preferred Stock and...Ch. 11 - Recording Dividends and Preparing a Statement of...Ch. 11 - Analyzing Stock Dividends On December 31, the...Ch. 11 - Prob. 13ECh. 11 - Comparing 100 percent Stock Dividend and 2-for-1...Ch. 11 - Journalizing Cash Dividends Bogscraft Company has...Ch. 11 - Preparing a Statement of Retained Earnings and...Ch. 11 - Determining the Effect of a Stock Repurchase on...Ch. 11 - (Supplement 11 A) Comparing Stockholders' Equity...Ch. 11 - Prob. 19ECh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Recording Stock Dividends Activision Blizzard,...Ch. 11 - Finding Missing Amounts At December 31, the...Ch. 11 - Prob. 4CPCh. 11 - Prob. 5CPCh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Recording Cash Dividends National Chocolate Corp....Ch. 11 - Finding Missing Amounts At December 31, the...Ch. 11 - Calculating Common and Preferred Cash Dividends...Ch. 11 - Prob. 5PACh. 11 - Analyzing Accounting Equation Effects, Recording...Ch. 11 - Prob. 2PBCh. 11 - Prob. 3PBCh. 11 - Prob. 4PBCh. 11 - Prob. 5PBCh. 11 - Financial Reporting of Depreciation, Write-off,...Ch. 11 - Prob. 2COPCh. 11 - Prob. 1SDCCh. 11 - Prob. 2SDCCh. 11 - Prob. 4SDCCh. 11 - Prob. 5SDCCh. 11 - Critical Thinking: Making a Decision asan Investor...Ch. 11 - CC11 Accounting for Equity Financing Nicole has...
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
- According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?arrow_forwardH5. You are considering an investment in Roxie's Bed & Breakfast Corporation During the last year, the firm's income statement listed an addition to retained earnings of $4.8 million and common stock dividends of $2.2 million. Roxie's year-end balance sheet shows common stockholders' equity of $35 million with 10 million shares of common stock outstanding. The common stock's market price per share was $9.00. What are Roxie's Bed & Breakfast's earnings per share? Calculate the price-earnings ratio. Show proper step by step calculationarrow_forwardFV Company earned net income of $75,000 during the year ended December 31, 2012. On December 15, FV declared the annual cash dividend on its 5% preferred stock (par value, $115,000) and a $0.50 per share cash dividend on its common stock (55,000 shares). FV then paid the dividends on January 4, 2013. 54 Requirements 1. Journalize for FV: 2. Declaring the cash dividends on December 15, 2012. 3. Paying the cash dividends on January 4, 2013.arrow_forward
- The following financial information is available for Blossom Ltd. as at December 31 (in thousands, except for per share amounts): 2021 2020 2019 Profit $1,721 $1,854 $2,317 Preferred share dividends (total) $73 $43 $30 Weighted average number of common shares 437 435 436 Dividends per common share $2.50 $2.25 $2.10 Market price per common share $43.00 $49.75 $56.25 (a)Calculate the earnings per share, price-earnings ratio, and payout ratio for the common shareholders for each of the three years. 2021 2020 2019 Earnings per share (Round answer to 2 decimal places, e.g. 5.25.) $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places $enter Earnings per share in dollars rounded to 2 decimal places Price-earnings ratio (Round answer to 1 decimal place, e.g. 15.5.) enter Price-earnings ratio in times rounded to 1…arrow_forward↑ 3 minutes ago ☆ Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $100,ese to buy a 90-day term deposit, $100,000 principal amount, 5.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 3,000 common shares of Blue Balloon Ltd. at $22.25. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 1,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 700 common shares of Yellow Tech Ltd. at $15.75. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $67,412 a 7.0%, $65,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large…arrow_forwardSuppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) 2022 2021 Net sales $ 1,130,000 $ 1,136,600 Net income (loss) 87,474 69,498 Total assets 855,338 838,078 Share information Shares outstanding at year-end 72,000,000 73,790,000 Preferred dividends There were 80,650,000 shares outstanding at the end of 2020. (a) What was the company's earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 2022: 2$ 2021:arrow_forward
- Assume the following is the stockholders' equity section from Altria's 2016 balance sheet. December 31 ($ millions) 2016 $ 935 Common stock, par value $0.33 1/3 per share (2,805,961,317 shares issued).... Additional paid-in capital. Earnings reinvested in the business Accumulated other comprehensive losses (including currency translation of $1,317 in 2016). 6,061 54,666 Cost of repurchased stock (721,696,918 shares in 2016), Total stockholders' equity.. (1,853) (24.102) $35,707 At what average price has Altria issued its common stock? a. $ 2.49 b. $ 0.33 c. $12.73 d. $33.40arrow_forwardCurrent Attempt in Progress Crane Co. had sales revenue of $549,202 in 2025. Other items recorded during the year were as follows. Cost of goods sold Salaries and wages expense Income tax expense Increase in value of company reputation Other operating expenses Unrealized gain on value of patents Save for Later $325,600 120,500 # Prepare a single-step income statement for Crane for 2025. Crane has 106.900 shares of stock outstanding (Round earnings per share to 2 decimal places, e.g. 1.48.) : # 29,130 17,330 # 11,970 23,730 CRANE CO. Income Statement $ 11 Attempts: 0 of 1 used Submit Answerarrow_forwardSuppose the following information is available for Callaway Golf Company for the years 2018 and 2017. (Dollars are in thousands, except share information.) 2018 2017 Net sales $1,117,204 $1,124,591 Net income (loss) 66,176 54,587 Total assets 855,338 838,078 Share information 2018 2017 Shares outstanding at year-end 64,507,000 66,282,000 Preferred dividends -0- -0- There were 73,139,000 shares outstanding at the end of 2016. Instructions (a) What was the company's earnings per share for each year? (b) Based on your findings above, how did the company's profitability change from 2017 to 2018? (c) Suppose the company had paid dividends on preferred stock and on common stock during the year. How would this affect your calculation in part (a)?arrow_forward
- Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) 2022 2021 Net sales $ 1,128,000 $ 1,135,100 Net income (loss) 86,156 69,048 Total assets 855,338 838,078 Share information Shares outstanding at year-end 71,500,000 73,300,000 Preferred dividends 0 0 There were 80,140,000 shares outstanding at the end of 2020.(a)What was the company’s earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 2022 : $ enter the company’s earnings per share for 2017 in dollars rounded to 2 decimal places 2021 : $ enter the company’s earnings per share for 2016 in dollars rounded to 2 decimal placesarrow_forward5 On January 1, 2018 ,Herron Corporation purchased 5,000 shares of treasury stock. Other information regarding Herron Corporation is provided as follows. Compute (a) return on common stockholders' equity for each year, and (b) discuss the changes in each. 2018 2017 Net income $100,000 $110,000 Dividends on preferred stock $ 30,000 $ 30,000 Dividends on common stock $ 25,000 $ 15,000 Weighted-average number of common shares outstanding 45,000 50,000 Common stockholders' equity beginning of year $750,000 $685,000 Common stockholders' equity end of year $795000 $750,000 [2017 (Net inc. − Pref. stk.) ÷ Ave. com. stkhldrs’ equity] [2017 ($110,000 − $30,000) ÷ (($685,000 + $750,000) ÷ 2)]arrow_forward5. The following information appears in the books of Great Corporation. | (see attached image for the given. Please answer it. Thank you so much!) The Board declared a cash dividend of P15 per share on November 15, 2014 to sharcholders of record as of December 15, 2014, payable on January 10, 2015. Direction: a) How many shares are entitled to dividends? ;b) Entries for the above transactions.¢) How much is free retained carnings?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning