The board of directors of Bramble Corp. declared a cash dividend of $1.30 per share on 36000 shares of common stock on July 15, 2020. The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020. The correct entry to be recorded on August 15, 2020, will include a
Q: On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney will pay…
A: The question is based on the concept of Financial Accounting.
Q: On December 31, 2020, Swifty, Inc. has 3700 shares of 5% $100 par value cumulative preferred stock…
A: Solution: To record accounting entry in relation with declaration of cash dividends, Cash dividends…
Q: Knudsen Corporation was organized on January 1, 2019. During its fi rst year, the corporation issued…
A: Cumulative preferred shareholders get the dividend collectively when the dividend remains unpaid for…
Q: King Tut Corporation issued 6,600 shares of common stock, all of the same class; 3,400 shares are…
A: Journal entries are prepared to record the financial and non financial transactions of the business.
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Journal Entries for 2018: Date Account title and explanation Debit Credit Nov. 1, 2018 Dividend…
Q: Outstanding stock of the Crevusse Corporation included 40,000 shares of $5 par common stock and…
A: Preferred stock holder means those stock holder who will be getting dividend before the common…
Q: At its meeting on December 1, 2021, the board of directors of ABC Co. declares a cash dividend of P2…
A: Cash dividend is payable to the shareholders who have the name on the shareholders register on the…
Q: Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares…
A: Earnings per share refer to the amount that is earned by the stockholders on every share held by…
Q: On January 1, 2018, Manama Company has 8% 80,000 shares of $10 par value, Cumulative preferred stock…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: During the year ended December 31, 2019, and in the following montha of January and February 2020,…
A: The FV- fair Value of Securities is considered as the current value at which the security is trading…
Q: Ringmeup Inc. had net income of $112,400 for the year ended December 31, 2019. At the beginning of…
A: Basic earnings per share = (Net Income - Preference Dividend)/ Weighted number of shares outstanding
Q: The shareholders' equity of Crystal Company includes the items shown below. The board of directors…
A: Given that, Cash dividend declared for the year - 2019 = 4 Million - 2020 = 7 Million - 2021 = 56…
Q: Ringmeup Inc. had net income of $186,400 for the year ended December 31, 2019. At the beginning of…
A: Basic Earnings per share of common stock is computed by dividing the Net income less preferred…
Q: Flatfish Limited reported the following items in shareholders' equity on December 31, 2020: Share…
A: Preferred Common Total 2018 arrears $560,000 ($4 X 140,000 shares) - $560,000 2019…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: A stock dividend is the payment of dividend which is done in the form of shares rather than cash.…
Q: Ringmeup Inc. had net income of $197,300 for the year ended December 31, 2019. At the beginning of…
A: Earnings Per Share: =Earnings attributable to shareholders / Weighted average number of shares…
Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's…
A: Stockholders equity section : It shows the amount of Capital, Reserve and surplus of the…
Q: Ringmeup Inc. had net income of $106,300 for the year ended December 31, 2019. At the beginning of…
A: Computation of weighted average outstanding sharesFor the year ended December 31, 2019 Particulars…
Q: On January 1, 2019, Powder Company provided the following shareholders’ equity section of its…
A: Stockholders’ equity: It can be defined as the residual amount of assets that are available to the…
Q: The board of directors of Blue Spruce Corp. declared a cash dividend of $2.45 per share on 32000…
A: Dividend is always paid on the outstanding shares of equity in the balance sheet.
Q: The shareholders' equity section of Charles Corporation at December 31, 2018 included the following:…
A: Preferred dividends are the dividends that are accrued paid on a company's…
Q: During 2019 Sasha Corporation reported a net income of $1,529,500. On January 1, 2020, Sasha had…
A: Part of shares issued on oct 1=210,000×312=52,500
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: Madison Company earned net income of $75,000 during the year ended December 31, 2018. On December…
A: Annual Dividend to Preferred shareholders = Par value of preferred share x rate of dividend =…
Q: Earnhart Corporation has outstanding 3,000,000 shares of common stock with a par value of $10 each.…
A: a. Prepare the journal entry to record the declaration and payment of the cash dividend.
Q: The board of directors of Tamarisk, Inc. declared a cash dividend of $2.25 per share on 30000 shares…
A: Journal Entries are the entries to be recorded in the accounting books of the business for all the…
Q: The board of directors of Skysong, Inc. declared a cash dividend of $2.05 per share on 37000 shares…
A: Total dividend paid = No. of common stock c dividend per share =37000*$2.05 = $75,850
Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…
A: Cash dividends are distribution of accumulated earnings by a companies to its stockholders.…
Q: The board of directors of Tamarisk, Inc. declared a cash dividend of $1.95 per share on 33000 shares…
A: Answer: debit to dividends playable
Q: On December 31, 2021, Marigold, Inc. has 3800 shares of 6% $100 par value cumulative preferred stock…
A: Answer: Credit of $20,500 to dividends payable
Q: Al Hamra Company issues 500,000 shares of common stock on January 1, 2020 trading at RO 0.200 per…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2020, Concord Corporation purchased 1,100 shares of treasury stock. Other information…
A: Formula for Return on common stockholder's equity: Return on common stockholder's equity = (Net…
Q: At the beginning of 2019, TJH Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Solution: Retained earnings balance at Dec 31, 2019 = Beginning retained earnings + Net income -…
Q: Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued…
A: The preferred stockholders should give a preference at the time of payment of dividend and the…
Q: Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's…
A: Stock dividend distributable=Number of share×% of dividend×Fair value=60,000×15%×$16=$144,000
Q: What are the amounts of dividends payable on both the ordinary and preference shares?
A: Preference dividends shall be paid before paying any dividend to common stockholders. Further, if…
Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: on january 1, 2020, abc corporation had 200,000 ordinary shares issued and outstanding. on april 1,…
A: Earnings per share are the earnings earned by each shareholder from the earnings or net income of…
Q: On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per…
A: Share premium is the premium or additional paid in capital which has been received by the company in…
Q: Sandhill Company reported the following amounts in the stockholders’ equity section of its December…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: However, now assume that for this question only that the preferred shares were cumulative and…
A: Preferred Shareholders dividend for 2019 not Paid before = 300,000 x 0.90 =270,000 Preferred…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Coronado Company reported the following amounts in the stockholders’ equity section of its December…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Ringmeup Inc. had net income of $148,800 for the year ended December 31, 2019. At the beginning of…
A: Weighted average number of outstanding shares = 38,000×412 + 53,000×712 + 48,300×112…
Q: The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000…
A: Working Note: Total dividend paid = No. of shares issued and outstanding x Dividend per share =…
Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…
A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…
Q: Splish Company reported the following amounts in the stockholders’ equity section of its December…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Larkspur Company reported the following amounts in the stockholders' equity section of its December…
A: Declared Dividend on common stock = rate of dividend * number of outstanding common stock Declared…
The board of directors of Bramble Corp. declared a cash dividend of $1.30 per share on 36000 shares of common stock on July 15, 2020. The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020. The correct entry to be recorded on August 15, 2020, will include a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.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.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. 6.73
- 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?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.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.
- Jumbo Corporation reported the following information about its stock on its December 31, 2018, balance sheet: Jumbo Corporation engaged in the following stock transactions during 2019: Required: 1. Does Jumbo Corporation have a simple or complex capital structure? 2. Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2019 income statement.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).Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.
- Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 2019.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)