Stocks (Common Stock and Preferred Stock): These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and preference shareholders generally do not get this right but they may get voting rights with special provisions. Cash dividend: The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment. To calculate: The balance of retained earnings as on 12/31/2019.
Stocks (Common Stock and Preferred Stock): These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and preference shareholders generally do not get this right but they may get voting rights with special provisions. Cash dividend: The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment. To calculate: The balance of retained earnings as on 12/31/2019.
Solution Summary: The author explains that common stock and preferred stock are two types of the share capital of a company. The cash dividend is declared first and paid later.
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
Chapter 10, Problem 52BE
To determine
Concept introduction:
Stocks (Common Stock and Preferred Stock):
These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and preference shareholders generally do not get this right but they may get voting rights with special provisions.
Cash dividend:
The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment.
To calculate:
The balance of retained earnings as on 12/31/2019.
Identify which of the following items would be reported as additions or deductions in a Retained Earnings Statement.
Additions or Deductions
1.
Net Income
2.
Net Loss
3.
Cash Dividends
Stock Dividends
You are required to:
Prepare the Retained Earnings columns as it would appear in the Statement of Changes in Equity of MTA Ltd as at 31 December 2021. Comparative figures are not required.
The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
Debits
14,600
345,000
14,500
54,000
640,000
Account Title
Credits
Cash
Accounts receivable
Prepaid rent
Inventory
Office equipment
Accumulated depreciation
Accounts payable
Notes payable (due in six months)
Salaries payable
Interest payable
Common stock
Retained earnings
Sales revenue
266,000
78,000
72,000
7,800
2,400
400, 000
165,000
780,000
Cost of goods sold
Salaries expense
Rent expense
Depreciation expense
Interest expense
Advertising expense
468,000
117,000
43, 500
64,000
4,800
5,800
1,771, 200 1,771, 200
Totals
Required:
1-a. Prepare an income statement for the year ended December 31, 2021.
1-b. Prepare a classified balance sheet as of December 31, 2021.
Re LA
Reg 1a
Re 2
Prepare an incoe statement for the year anded December 31, 2021.
BLUEBOY CHEESE CORPORATION
Income Satement
For the Year Ended December 31, 221
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.