As of December 31, 2021, Warner Corporation reported the following: Cash dividends payable $ 30,000 Treasury stock 700,000 Paid-in capital—share repurchase 30,000 Common stock and other paid-in capital accounts 5,000,000 Retained earnings 4,000,000 During 2022, half of the treasury stock was resold for $260,000; net income was $700,000; cash dividends declared were $1,600,000; and stock dividends declared were $600,000. The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $90,000 Reduce retained earnings by $60,000 Increase total shareholders' equity by $350,000 Reduce retained earnings by $90,000

As of December 31, 2021, Warner Corporation reported the following: Cash dividends payable $ 30,000 Treasury stock 700,000 Paid-in capital—share repurchase 30,000 Common stock and other paid-in capital accounts 5,000,000 Retained earnings 4,000,000 During 2022, half of the treasury stock was resold for $260,000; net income was $700,000; cash dividends declared were $1,600,000; and stock dividends declared were $600,000. The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $90,000 Reduce retained earnings by $60,000 Increase total shareholders' equity by $350,000 Reduce retained earnings by $90,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 24E

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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.
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?
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.
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.
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.)
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.
As of December 31, 2024, Purdue Corporation reported the following: Cash dividends payable $ 24,000 Treasury stock 640,000 Paid-in capital—share repurchase 24,000 Common stock and other paid-in capital accounts 4,400,000 Retained earnings 3,400,000 During 2025, half of the treasury stock was resold for $248,000; net income was $640,000; cash dividends declared were $540,000; and small stock dividends declared and distributed were $408,000. What would shareholders' equity be as of December 31, 2025?
As of December 31, 2021, Ameren Corp reported the following: Cash dividends payable $ 22,000 Treasury stock 620,000 Paid-in capital—share repurchase 22,000 Common stock and other paid-in capital accounts 4,200,000 Retained earnings 3,200,000 During 2022, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000. The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $66,000 Increase total shareholders' equity by $310,000 Reduce retained earnings by $44,000 Reduce retained earnings by $66,000
As of December 31, 2024, Warner Corporation reported the following: Cash dividends payable $ 20,000 Treasury stock 600,000 Paid-in capital—share repurchase 20,000 Common stock and other paid-in capital accounts 4,000,000 Retained earnings 3,000,000 What was shareholders' equity as of December 31, 2024?
As of December 31, 2018, Warner Corporation reported the following: Dividends payable $ 28,000 Treasury stock 680,000 Paid-in capital—share repurchase 28,000 Other paid-in capital accounts 4,800,000 Retained earnings 3,800,000 During 2019, half of the treasury stock was resold for $256,000; net income was $680,000; cash dividends declared were $1,580,000; and stock dividends declared were $580,000. What would shareholders' equity be as of December 31, 2019? please avoid image based solutions thnx
The following table gives abbreviated balance sheets and income statements for Walmart. At the end of fiscal 2019, Walmart had 2,832 million shares outstanding with a share price of $94. The company's weighted-average cost of capital was about 5%. Assume a tax rate of 21%. Assets Current assets: Cash and marketable securities Accounts receivable Inventories Balance Sheet (figures in $ millions) Fiscal 2019 Other current assets Total current assets Fixed assets: Net fixed assets Other long-term assets Total assets ies and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity Total liabilities and shareholders' equity Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Other income/expenses Earnings before interest and taxes (EBIT) Interest expense Taxable income Tax Net income Income Statement (figures in $…
20. As of December 31, 2021, Halliburton Co. reported the following: Cash dividends payable $ 34,000 Treasury stock 740,000 Paid-in capital—share repurchase 34,000 Common stock and other paid-in capital accounts 5,400,000 Retained earnings 4,400,000 During 2022, half of the treasury stock was resold for $268,000; net income was $740,000; cash dividends declared were $1,640,000; and stock dividends declared were $640,000. The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $102,000 Reduce retained earnings by $68,000 Reduce retained earnings by $102,000 Increase total shareholders' equity by $370,000

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Cash dividends payable	$	30,000
Treasury stock		700,000
Paid-in capital—share repurchase		30,000
Common stock and other paid-in capital accounts		5,000,000
Retained earnings		4,000,000