Canterbury Company reported total stockholders' equity of $170,000 on its balance sheet dated December 31, 2021. During the year ended December 31, 2022, Canterbury reported net income of $20,000 and issued additional common stock for $40,000. It total stockholders' equity as of December 31, 2022 is $226,000, what was the amount of dividends declared during the year ended December 31, 2022?
Q: Exercise 11-5 (Algo) Analyzing impact of stock issuance transactions LO P1 Analyze each transaction…
A: The shares issued at more than par value or stated value are said to be adding value to additional…
Q: Req B1 Req B2 Prepare a statement of cash flows for the Year 1 accounting period. (Enter cash…
A: Cash flows statement is one of the financial statement of business. It shows all cash inflows and…
Q: Date December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026…
A: Closing inventory or ending inventory is that part of stock which remain unsold at the end of a…
Q: From the following particulars, prepare Process X account showing the cost per tonne of output:…
A: Process Costing - It is the method of costing which is used wherein the product is completed through…
Q: Prepare all necessary journal entries for Sheridan for 2025. (List all debit entries before credit…
A: Lease is the agreement between the two parties who are giving or taking the asset for use. The…
Q: Dr. Belo has a total of 14 bills in his wallet. Some are P50 bills and the rest are P100 . The total…
A: Suppose count of P50 = X and count of P100 = Y
Q: Carney Company manufactures cappuccino makers. For the first eight months of 2010, the company…
A: Incremental analysis is one of the decision making techniques that helps the entity to decide if a…
Q: Frozen Foods Division: Sales Operating income Average operating assets Canned Foods Division: Sales…
A: Residual income: The remaining income from operations after deducting the desired acceptable income…
Q: $800. Required: a) Journalize the transactions in the books of original entry b) Post in the…
A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…
Q: Christmas Express makes wreaths in batch sizes of 12. The cutting and assembly process takes 8…
A: Time taken for cutting and assembly = 8 minutes per wreath Time taken for decorating process = 10…
Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…
A: Break even point in dollar sales =Total Fixed cost/Contribution margin ratio
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: The contribution format income statement helps us to understand the contribution margin and the…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation is the amount by which fixed assets of the company is reduced through-out its useful…
Q: Exercise 13-4 uting and interpreting 1-size per Compute common-size percents for the following…
A: The income statements elements are compared on the basis of sales revenue. This helps to compare the…
Q: Session Company uses 5,000 units of Part Y each year as a component in the assembly of one of its…
A: Make or buy is the decision making analysis that helps the entity to know if a particular production…
Q: The Pinwheel Company completed the transactions below during December 1 8 14 22 26 Owner started…
A: Cash Account - Cash account is a ledger to be recorded in the assets side of the balance sheet. It…
Q: Golden Corporation has operating income of $390,000, a sales margin of 20%, and capital tumover of…
A: ROI means return on investment. This is the percentage return earned by the entity on the invested…
Q: ound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget…
A: The master budget is the budget which is fixed and can not be changed. The flexible budget can be…
Q: Q1 Mat Place purchases old tires and recycles them to produce rubber and car mats. The company…
A: Joint cost is the cost allocated to more than one product, while a by-product is a product that has…
Q: Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its…
A: Contingent liabilities are important for recognition because they can have a significant impact on a…
Q: The accounting records for Elsner Manufacturing Company Included the following cost information…
A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Direct labor budget is the statement which is prepared by the entity for the purpose of determining…
Q: Olsen Company produces two products. Product A has a contribution margin of $30 and requires 10…
A: Contribution margin is the amount that we get after subtracting total variable cost from the sales.…
Q: Treasury stock that was purchased for $2,821 is sold for $3,450. As a result of these two…
A: Treasury stock represents the shares repurchased by the entity. In other words, when the entity…
Q: The following items were selected from among the transactions completed by Sherwood Co. during the…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: IANCES. You have been invited to interview for an internship with an international food…
A: Direct material variance shows the difference between estimated per unit cost or material and actual…
Q: Current Attempt in Progress Bramble Depot sells mobile devices and accessories. During September,…
A: Journal entries refer to the process of systematic documentation of the transactions of a company in…
Q: The following information pertains to Peak Heights Company: Income Statement for Current Year Sales…
A: Cash flows from operating activities is one of the important section of cash flow statement. It…
Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…
A: Current and quick ratio are the ratios that are helpful in determining the liquidity position of the…
Q: The inventory of Royal Decking consisted of five products. Information about ending inventory is as…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: FlashCo. Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following data…
A: The lower-of-cost-or-net realizable value is a method in accounting for inventory used by many…
Q: Ahmed Zinna, one of your clients, owns two retall establishments in downtown Charlotte and has come…
A: Calculation of Maximum Credit: Maximum Credit = [(Projected expenditures – Minimum eligible…
Q: Daugherty Ltd had original sales and cost data for the month of April as follows: 17,000 units…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: D Company is evaluating three projects. Each project has a useful life of 5 years. Relevant data on…
A: The payback period outlines the period required by an investment to recover the cost of the initial…
Q: On May 1, Knack Company signed a $80,000, 240-day, 6% note payable with Central Savings Bank. What…
A: Notes payable is current liabilities if it is due to pay able with one year. Interest is also…
Q: Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard…
A: Direct Material Variance :— It is the difference between standard direct material cost for actual…
Q: Exercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has…
A: Distribution refers to the process of taking out the investment returns (such as interest,…
Q: Use the following bank statement and T-account to prepare the May 31 bank reconciliation. BANK…
A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…
Q: The following budget Information is available for the Arch Company for January Year 2: Sales Cost of…
A: The selling and administrative expenses are the period costs that are incurred and expenses during…
Q: Benitez Company currently outsources a relay switch that is a component in one of its products. The…
A: To calculate whether the cost of making the parts is higher than purchasing , relevant making cost…
Q: Consider the following couple, who are engaged to be married. Assume that each person takes one…
A: The term “ income tax ” refers to a type of tax governments put on income businesses and…
Q: Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at…
A: Total product cost is the combination of direct material cost, direct labor cost and manufacturing…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: The cash receipts means the amount of money collected by the entity from sales of either previous or…
Q: A company orders 6,225 units per order. Each unit costs £8 to purchase and the cost of holding one…
A: ECONOMIC ORDER QUANTITY The total costs of a material usually consist of Buying Cost + Total…
Q: Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors…
A: Buy cost is the cost to purchase the product from outside. Make cost is the cost of making/…
Q: b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his…
A: The user requested to compute the tax basis of each member's LLC interest immediately after Dave's…
Q: The ending bank statement balance at November 30 is $6,850. The bank statement shows a service…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book. The…
Q: The following data are available for Selico for the fiscal year ended on January 31, 2023: 810 units…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: cription Direct Materials Conversion Inventory in process, beginning of period 0 3,430 Started and…
A: Cost of units completed and transferred out = (54,570*$0.40 + 58000*$0.20)+$3,130 Cost of units…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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?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.
- Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet: The following stock transactions occurred during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 225,000).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?Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.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. 6.73Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.
- 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.Included in the December 31, 2018, Jacobi Company balance sheet was the following shareholders equity section: The company engaged in the following stock transactions during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 270,000).Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, 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 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. 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. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. 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, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 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 5,254,000 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 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 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 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). 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, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)