Highland Bancshares has 33,000 shares of $1 par value common stock outstanding Suppose Highland declares and distributes a 10% stock dividend when the market value of its stock is $16 per share. 1. Journalize Highland's declaration and distribution of the stock dividend on May 11. An explanation is not required. 2. What was the overall effect of the stock dividend on Highland's total assets? On total liabilities? On total stockholders' equity? 1. Journalize Highland's declaration and distribution of the stock dividend on May 11. An explanation is not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts May Date 11 Debit Credit
Q: Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire…
A: The concept of TVM will be used and applied here.TVM refers to time value of money.
Q: On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual…
A: As per the given information:
Q: Grady is a member of a large family and received the following payments this year. For each payment,…
A: Realized income refers to the actual income or earnings that have been received or generated by an…
Q: More info Oct. 1 Beginning merchandise inventory Oct. 11 Purchase Oct. 23 Sale Oct. 26 Purchase Oct.…
A: Cost of goods sold is the amount of cost incurred on the making of the goods sold in the…
Q: Sales Cost of goods sold Accounts receivable 2021 2020 $612,715 $403,102 315,035 29,717 207,232…
A: Trend Analysis -Trend Analysis is a technique of comparing multiple years. In this technique, 1st…
Q: Number of Units 140 240 80 220 Beginning inventory Purchased goods during the period Sold goods…
A: Inventory management have three methodsFIFO methodLifo methodWeighted average method.Generally FIFO…
Q: You have received a settlement offer from an automobile manufacturer due to mechanical problems with…
A: The discount rate used in NPV calculation represents the opportunity cost of capital or the rate of…
Q: Use the following information for the Exercises below. (Static) [The following information applies…
A: Income statement is a financial statement which is prepared by a firm to know the profitability of…
Q: Presented below are incomplete 2022 manufacturing cost data for Ivanhoe Corporation. Determine the…
A: Costs of manufacturing include material costs as well as the costs of converting the raw materials…
Q: A company makes a product R, which requires one each of two first-level components, 5 and T. Routing…
A: Standard hours capacity is set according to the ability of a particular machine in a process…
Q: Required information Problem 11-51 (LO 11-5) (Algo) [The following information applies to the…
A: Section 1231 property is a real depreciable business property held for more than one year. 1231…
Q: Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: Finch Company's cost and production data for two recent months included the following: April 1,000…
A: Variable cost remains constant per unit and fixed cost will changes per unit.Fixed cost will remain…
Q: This is a 2.5 years old store. Last year CP is $109,350, Bonus is $4,500 and Worker Comp is $900.…
A: Sales typically refers to the revenue generated from the sale of goods or services by a business. It…
Q: Alicia has been working for JMM Corporated for 33 years. Alicia participates in JMM's defined…
A: The employers provide multiple benefits to the employee like overtime, insurance, retirement…
Q: Kequirea: a. Complete the production cost report for August using the weighted-average method. Note:…
A: Equivalent units of production means converting the work-in-progress of incomplete units into…
Q: Sheridan, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows:…
A: Make or buy is the decision making analysis that helps the entity to decide if the product is to be…
Q: July 1 1 3 5 12 18 20 21 25 31 31 Clark opened Pharoah's Cleaning Service on July 1, 2022. During…
A: According to the question given, we need to prepare the closing entries.Closing entries:Closing…
Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Sell or Process Further. Jackson Lumber Company incurs a cost of $374 per hundred board feet (hbf)…
A: Differential analysis is prepared to decide on a choice in order the maximise the profit for the…
Q: 2. [Para. 6-b-21 Taxes were levied by the debt service fund in the amount of $1,938,000. Of this…
A: Governmental funds accounting is based on current financial resources measurement focus and the…
Q: Calculate the DTI ratio (as a percent) for a borrower who has a gross monthly income of $5,330 and…
A: DTI ratio compares a person's or a household's total debt payments to their gross income. This is…
Q: Chance. as spot wel ers for manufacturers. The following budgeted cost data for 2020 is available…
A: Labour rates are used to calculate both the price of employee time invoiced to customers and the…
Q: The following information was taken from the records of Sheffield SA for the year 2022: Income tax…
A: Income Statement -An income Statement is a financial statement that includes Revenue earned and…
Q: Which of the following is NOT a factor that should be considered when determining if a taxpayer has…
A: Business income refers to the profits or earnings generated from the operations of a business or…
Q: Radon Corporation manufactured 33,000 grooming kits for horses during March. The following fixed…
A: Variance analysis helps a company's attempts to develop continuously. Management may minimize…
Q: Required information [The following information applies to the questions displayed below] Trey…
A: The commodities or products that a business keeps on hand for sale or usage in its operations are…
Q: Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes…
A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: The following is the balance sheet of Korver Supply Company at December 31, 2023 (prior year).…
A: The balance sheet is produced at the end of an accounting period to depict its financial position at…
Q: Bethesda Mining Company reports the following balance sheet information for 2021 and 2022. Prepare…
A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…
Q: Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a…
A: Journal entry is a process of recording each and every business transaction into books of accounts…
Q: Enterprise Software has the following inventory data: Inventory Purchase 30 units @ $6.00 each 120…
A: The Specific identification method is a technique of inventory valuation in which each item is…
Q: Sacred Heart Hospital had the following closing entries for the year ended December 31, 2017:…
A: Statement of operations refers to a statement in which organizations report their revenues or…
Q: Under IFRS, research must be expensed but some development expenditures may be capitalized. To…
A: IFRS stands for International Financial Reporting Standards. Research and development expenses are…
Q: ABC Corporation owns 20% of DEF’s stocks and receives $3,500 in dividend income. It is in the 34%…
A: The dividend is the profits distributed by the company to its shareholders. Shares can be held by…
Q: Allowance for Doubtful Accounts has a credit balance of $1,402 at the end of the year (before…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: At the beginning of the year, a company had $126,000 of liabilities. During the year, assets…
A: Calculation of Beginning values of EquityOn reading the question, we have come to know that assets…
Q: Can you help prepare the 2 attached journal entries for this example The management of Banciu…
A: Journal EntryIn an accounting system, a journal entry serves as a record of a financial transaction.…
Q: Two employees worked one week and were paid salaries of $2500. The journal entry would: debit Cash…
A: The journal entry is recorded under the fundamental rules of accounting. The income, liability, and…
Q: Problem 5-9A (Algo) Using the percentage method from Appendix C calculate the federal withholding…
A: Withholding amount is the amount of tax hold from the part of the income. The amount is calculated…
Q: se the above information to prepare a December 31 balance sheet for Ernst Consulting. ERNST…
A: The balance sheet is a mirror of the organization's performance and financial position at some…
Q: Other cash disbursements budgeted: (a) selling and administrative expenses of $48,000 each month,…
A: The cash collection and purchases payment schedules are prepared to find the cash collection and…
Q: Sweet Sarah received 10 NQOs (each option gives her the right to purchase 20 shares of stock for $5…
A: Issue of shares is one of the important source being used for financing purpose. Stock options…
Q: Niagara Ltd Income Statement for the year ended 31 Dec 2020 1 000 650 350 Sales Cost of goods sold…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Peter Ltd makes 3 products that must be offered for sale each month to complete market service. The…
A: ManagementAccounting is a method of accounting that helps in creating statements, reports, and…
Q: 6. A B C $70,000 $97,000 $23,000 Sales Variable costs 37,000 51,000 15,000 Contribution margin…
A: Cost is divided into two - Fixed Cost and Variable Cost. Variable cost is the one that changes as…
Q: Amazonia Inc. made a $100,000 distribution this year to its sole shareholder, Ellie. Ellie has a…
A: Capital gain is a profit which arises on sale of an asset. If an asset is sold after holding it for…
Q: A lease agreement that qualifies as a finance lease calls for annual lease payments of $60,000 over…
A: Lease is a agreement between lessor and lessee where lessor allows lessee to use asset in exchange…
Q: Coronado Inc. purchased equipment for $1404000 in 2025. Three years later, the equipment has…
A: Impairment loss is done when carrying value of asset is higher than recoverable value of asset.…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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.
- 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).Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?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?
- Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)Following is the shareholders equity section of All-Wood Doors on a day a. Use the financial statement template below to show the financial statement effects of the following dividend events. (Assume that the events are independent.) (1) Cash dividend declaration and payment of 1 per share (3) Property dividend declaration and payment of shares representing a short-term investment in Screen Products, Ltd., with a fair value of 10,000 (3) 10% stock dividend (4) 100% stock dividend (5) 3-for-1 stock split (6) 1-for-2 reverse stock split b. Which events changed the book value of common equity? Under what conditions will these events lead to future increases and decreases in ROE?
- 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.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.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?