Use the following information for the Exercises 8-9 below. (Algo) [The following information applies to the questions displayed below.] On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock-$10 par value, 76,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Exercise 11-9 (Algo) Stock split LO P2 $760,000 330,000 725,000 $ 1,815,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split.
Q: Your company receives interest on a tax-free bond. This creates a permanent difference between the…
A: Income tax actual paid and income tax expenses some time differ because of deferred income…
Q: Preparation of Journal Entries: Transaction Account Titles and Explanations Debit Credit a Cash $…
A: BookkeepingBookkeeping is the process of recording daily transactions in books of accounts.…
Q: What is the company's inventory in the opening balance sheet? What is the amount of the company's…
A: There are various questions and only the first three questions has been solved, as those are…
Q: Seerden Servicing monitors its accounts receivable carefully. A review determined that a customer,…
A: In accounting, bills of exchange are documented promises to pay a certain amount on a specified…
Q: Kellogg Company’s financial managers are meeting with the company’s bank to renew their line of…
A: A Cash Budget depicts the cash receipts and cash payments for the period. It helps the company to…
Q: UMPI Co. purchased land costing $2,550,000 as a future factory site. UMPI paid $240,000 to tear down…
A: Capitalized costs are those that are long-term in nature and they are generally related to the…
Q: Differential Analysis for a Discontinued Product A condensed income statement by product line for…
A: Variable cost needs to be incurred for each additional unit. Where's fixed cost is constant in…
Q: Account Name 101: Cash 111: Accounts receivable 121: Supplies 131: Prepaid advertising 141:…
A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…
Q: Current Attempt in Progress * Your answer is incorrect. A dairy operation processes raw milk into…
A: The net realizable value (NRV) approach is used to allocate joint expenditures when goods are…
Q: Sugar Corporation manufactures specialized sugar cubes that are used in tea. The company has a sales…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Leist Clinic uses client-visits as its measure of activity. During September, the clinic budgeted…
A: Occupancy expenses in flexible budget= (Actual level of activity ×variable element per client visit)…
Q: ournalize the following transactions for Becah's Bakery: Becah's Bakery a. Incurred and paid…
A: Manufacturing overhead is an indirect cost. It does not directly charge the cost of production.…
Q: Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot…
A: a transaction in which one party or one person gives another person ownership, right or control of…
Q: General Ledger Problem 5.1 (based on Chapter example). LO 5-1, 5-2, 5-3, 5-4, 5-5 This is a…
A: Adjusting entries is important for organizations to follow the accrual principle. These entries help…
Q: A retailer reports the following for its geographic divisions for the year. 1. Compute profit…
A: The objective of the question is to calculate the profit margin for each geographic division of the…
Q: You have been asked to test the effectiveness of Ingo Corporation's control of manually approving…
A: a. Given that: Tolerable deviation rate = 4% Risk of assessing control risk = 5%Planned level of…
Q: ournalize the following transactions for Becah's Bakery: Becah's Bakery a. Incurred and paid…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: The job order costing system is the costing method that determines the total cost associated with…
Q: The Fredbear Company reported the following results for July: Selling price per unit $650 Number of…
A: Income statement is the statement which shows the financial performance of the firm for the…
Q: Cullumber Company estimates that annual manufacturing overhead costs will be $768,000. Estimated…
A: The Predetermined Overhead Rate Divides The Estimated Manufacturing Overhead Cost By Estimated…
Q: 5.1. ABC(LTD) is a manufacturer of Stationery. The Following information is given regarding ABC Ltd…
A: When there is a difference between the accounting income and tax income, the deferred tax…
Q: Mobile Technology Ltd. reported an unadjusted balance of accounts receivable of $1,380,000 at 31…
A: Bad debts are accounts receivable that are no longer anticipated to be collectable and must be…
Q: Pumpkin Products sells its main product, designer headphones, for $13.20 each. Its variable costs…
A: Variable cost per unit remains same at any level of production. Total variable cost changes with the…
Q: PKT Ltd acquired 80% of the ordinary shares of CF Ltd. The net assets were fairly valued on 1…
A: When one company acquires a significant portion of another company's shares, it often results in…
Q: What is Capital Cost Allowance in Canada and what it's importance?
A: The objective of the question is to understand the concept of Capital Cost Allowance (CCA) in Canada…
Q: Required Information [The following information applies to the questions displayed below.] Iguana,…
A: The question is based on the concept of Cost Accounting.
Q: paid Website expenses, $2,770. b. Incurred manufacturing wages of $9,800, of which 80% was for…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process.…
A: The value at which an asset can be sold less the anticipated expenses associated with doing so is…
Q: n December 15, a corporation declared a dividend of $1.50 per share on 28,000 shares of common…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: The auditor should consider audit risk when planning and performing an audit of financial…
A: The objective of the question is to understand the interrelationship between the three components of…
Q: Current Ratio Smith and Sons, Inc. Income Statement ( in millions) Current Year Previous Year Net…
A: Current ratio refers to the ratio that tells about the ability of the company to pay its current…
Q: age hourly rate of $11.70, prepare a jou ecord actual costs, standard costs, and a
A: Labour Variance is the difference between the actual cost and standard cost. It is divided into…
Q: 3. In the context of Nonconformance Costs, which is an example of an External Failure Cost? a)…
A: Nonconformance cost is the amount of money spent by the company when it fails to ensure the required…
Q: 3.1. Discuss the disclosure requirements for a change in accounting policy. 3.2. RT (LTD) purchased…
A: The objective of the first question is to discuss the disclosure requirements for a change in…
Q: Bulluck Corporation makes a product with the following standard costs: Standard Quantity or…
A: The difference between the standard or expected cost of the materials used in manufacturing and…
Q: Wallace Contracting recorded the following transactions during November 2023: General Journal Nov. 3…
A: General Ledgers are the ledgers used to record the head ledgers of the transactions entered.…
Q: At December 31, 2024, Oriole Company made an accrued expense adjusting entry of $1,200 for salaries.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Yamomora Co. 1,860 units in January and 2,266 units in February. The company budgets $85 per unit…
A:
Q: On February 1, 2024, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of…
A: The bonds are the debt securities either issued by government entity or corporations. The bonds are…
Q: Wilson Manufacturing has provided you with the following variances for the month of March: Direct…
A: Direct Material Spending Variance: This variance measures the difference between the actual cost of…
Q: On 1 April 20X8 Hop entered a two-year lease agreement for a photocopier and on that date made a…
A: It appears there might be a misunderstanding or error in the accounting treatment for the lease…
Q: 2 MotoSport is buying an asset that costs $730,000 and can be depreciated at 20 percent per year…
A: When an asset that is being used by a business is sold, a profit or gain is recorded as a business…
Q: Volte Corporation produces small electric appliances. The following information is available for the…
A: Variance analysis is an important part of standard costing. The variance is used to analyze the…
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the…
A: Answer:- A flexible budget is a budgeting strategy that adapts to variations in volume or activity…
Q: During June, Fraser Company's material purchases amounted to 6,900 pounds at a price of $9.00 per…
A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…
Q: 3, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay…
A: Foreign currency transaction gain or loss is the change in the foreign currency value on account of…
Q: (a) Calculate income taxes paid in 2023 and discuss the related disclosure requirements under IFRS,…
A: ParticularsAmountIncome tax Expense of 2023$2,520+ The current tax expense is calculated by adding…
Q: Altira Corporation provides the following information related to its inventory during the month of…
A: Lets understand the basics.Cost of goods sold and inventory can be calculated using,(1) FIFO…
Q: Home Properties is developing a subdivision that includes 410 home lots. The 180 lots in the Canyon…
A: When two or more products get produced from single a pool of expense then joint cost needs to be…
Q: Alfonza Incorporated presents its statement of cash flows using the indirect method. The following…
A: Cash flow statement - It is one of the financial statements that shows changes in cash and cash…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Outstanding 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.Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend?Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock dividend when the stock is selling for 30 per share. Prepare the journal entry on the date of declaration to record Pickenss stock dividend.
- 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.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?Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
- 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.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.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.Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).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.