The shareholders' equity accounts of Crane Ltd. on April 1, 2020, the beginning of the fiscal year, are as follows: $5 cumulative preferred shares (18,000 issued) Common shares (460,000 issued) Retained earnings Total shareholders' equity During the year, the following transactions occurred: 2020 June 1 July Sept. 30 2021 Jan Mar. 1 Reacquired 12.000 common shares for $11 per share. Issued 51,000 common shares for $12 per share. Reacquired 8,000 common shares for $11.50 per share. 31 $1,440,000 4,600,000 1,600,000 $7,640,000 31 Issued 54,000 common shares in exchange for land. The land's fair value was $648,000. Profit for the year ended March 31, 2021, was $1,025,000.
Q: Fill in the Blank Question E A manufacturing company has a production where one-half of the…
A: Equivalent units of production is calculated under process costing where there is more than one…
Q: What is the stock to sale ratio for the sleepwear department for May if sales are planned at…
A: Stock to sale ratio is the measure which helps the entity in determining the inventory of the…
Q: AcerWare Inc. manufactures external hard disks for $32 per unit, and the maximum price customers are…
A: Competitive advantage refers to the favorable position in the market for an organization to…
Q: Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31,…
A: 1. Income Statement - Income Statement includes revenue earned and expense incurred during the…
Q: 1. 1. Builds a cash value variable life whole life COBRA Both A and B
A: Cash value is a form of permanent life insurance which lasts for the lifetime of the holder and can…
Q: Aaron Company has a process costing system. All materials are introduced when conversion costs reach…
A: Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…
Q: e direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead to cost…
Q: From this dialog box you can post a payment to a guest folio without checking out the reservation.…
A: An advance folio is typically used to record deposits or prepayments made by a guest before their…
Q: Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its…
A: The total manufacturing cost refers to the cost incurred in factory for the production of goods.…
Q: Recording and Reporting Temporary and Permanent Differences The records of Lane Corporation show the…
A: Lets understand the basics. When there is temporary difference arise between the profit as per book…
Q: onversion.
A: Answer : Journal entry : Date Account title Debit Credit April1,2025 Interest payable…
Q: Brewery Ipana Oy also drafts a plan where all other values remain the same as initially estimated,…
A: Cost volume profit analysis is called CVP ANALYSIS. Contribution margin is sales - variable cost.
Q: Bruce is single and has adjusted gross income for the current year of $90,000 before any deduction…
A: Passive income is income that is earned from rental property, limited partnership, or other sources…
Q: Required information [The following information applies to the questions displayed below.] Iguana,…
A: In accounting, budgeting refers to the process of creating a financial plan for a specific period,…
Q: For February, sales revenue is $615,000; sales commissions are 6% of sales; the sales manager's…
A: Introduction:- A selling expense is a cost incurred to promote and market products to customers.…
Q: Sarasota Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par…
A: Treasury stocks are repurchased shares of the company. The company has the power to reissue these…
Q: Match the following phrase to the term -Costs that are expensed rather than capitalized -A series of…
A: A lease is an agreement in contractual terms where one party (lessor) provides an identifiable asset…
Q: The net income of Foster Furniture, Inc., amounted to $1,700,000 for the current year. a.…
A: To compute earnings per share (EPS) for common stock, divide the net income by the number of shares…
Q: Required: Consider each case independently): 1. What is the revised net operating income if unit…
A: Net operating income is computed by deducting total variable expenses and fixed expenses from the…
Q: Required For each of the six separate scenarios outlined above, and considering only the fair value…
A:
Q: Exercise 2-14A (Algo) Recognizing accrued interest expense LO 2-5 Leach Company borrowed $45,000…
A: Accounting equation :— This equation shows how assets, liabilities and owner's equity are related to…
Q: Current Attempt in Progress Skysong Corporation purchased a tract of unimproved land for $557,000.…
A: Net profit refers to the gain from deducting the expenses from the revenue earned during the year by…
Q: USING EXCEL, DEVELOP A PERSONAL CASH BUDGET COVERING MARCH 2023 - DECEMBER 2023
A: dSince excel sheet cannot be uploaded and the excel sheet is big enough here are the Images of the…
Q: Rose Oil Cosmetics plans to grow its company by offering a new line of anti-aging products that are…
A: The balanced scorecard is a strategic management tool that provides a comprehensive view of an…
Q: Explian Tax Compliance Decisions in thoses erea Audit rates Fines Marginal tax rate Income Reasons…
A: Tax compliance decisions refer to the choices made by individuals or businesses to comply with tax…
Q: Tempo Company's fixed budget (based on sales of 7,000 units) follows. Fixed Budget Sales (7,000…
A: Lets understand the basics. Total production cost means cost of producing goods or services. Total…
Q: Oriole's payroll taxes are Social Security tax 6.2%, Medicare tax 1.45%, state unemployment 2.5%…
A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Journalize the following transactions for the month of February 1; a.Sold merchandise on account for…
A: Under accrual basis of accounting the revenues are recognized when earned irrespective of whether…
Q: Perpetual inventory using weighted average Beginning inventory, purchases, and sales for WCS12 are…
A: Under weighted average model, cost of the goods that are available for sale divided by the number of…
Q: June July August September October expects the Units 6,060 6,560 7,260 7,860 8,860 Tigle pro…
A: The production and direct materials budget is prepared after the sale budget. The production budget…
Q: [The following information applies to the questions displayed below.] Laker Company reported the…
A:
Q: The records of Novak Menswear report the following data for the month of September: Sales Sales…
A: Lets understand the basics. Retail inventory method is a method used for estimating value of stores…
Q: Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash.…
A: Consolidated financial statements is the statement prepared by the parent company under which the…
Q: Darren and Nikki own a cabin in Mammoth, California. During the year, they rented it for 45 days for…
A: Income from House Property refers to the rental income earned by an individual from a property that…
Q: Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its…
A: Relevant costs are the costs which can be avoided. These are incurred only when a specific business…
Q: Service Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming…
A:
Q: hġ case study - 1 Student boarding with friends Mai is 22 and is studying a Bachelor of…
A: Economical lifestyle to live life along with continuing study.
Q: Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement.…
A: Information on cost per unit is required in order to determine price which should be charged from…
Q: During 2022, Bramble Corporation reported sales revenue of $5,600,520, sales returns of $222,000 and…
A: The asset turnover ratio is calculated by dividing the net sales by the average operating assets…
Q: Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations,…
A: Flexible Budget: Flexible budget is prepared for a different level of activity. Variable costs…
Q: The following information is available on Bruder Inc.'s Product A: Number of units sold each year…
A: under Absorption costing both variable and fixed manufacturing cost considered as product cost.…
Q: Discuss fully how to analyze cash flow statement.
A: A cash flow statement is a financial statement that provides information about a company's cash…
Q: Save-the-Earth Co. reports the following income statement accounts for the year ended December 31.…
A: Income statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: The following select account data is taken from the records of Reese Industries for 2019. Sales…
A: "Since you have posted a question with multiple sub- parts, we will solve only first three sub-…
Q: 1. What would be the BEP in units sales if the company decides to: Increase the sales price from…
A: Variable costs are costs that varies with the change in level of output. Fixed costs are costs that…
Q: a. Prepare a multistep income statement. b. Compute the gross profit percentage.
A: Introduction: - Income statement shows company's income and expenses over a period of time.…
Q: Accounting Discuss why the balance sheet is a crucial tool for assessing company financial health?
A: The balance sheet is an important financial statement for any organization because it provides a…
Q: using the FV-NI method. On March 1, 2023, the company purchased 11000 shares of a publicly traded…
A: FV-NI method the investments are recognized on the basis of fair value in the market and the loss…
Q: The inside basis is defined as a partner's basis in the partnership interest. True False
A: Answer:- Partnership:- A partnership is a type of firm where two or more people share ownership,…
Q: [The following information applies to the questions displayed below.] The following unadjusted trial…
A: The liquidity ratios include current ratio, quick ratio and working capital. The profitability…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.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).
- Basic Income Statement The following are selected account balances of Rule Corporation at the end of the current year: Rule is subject to a 30% income tax rate, and shareholders own 800 shares of its capital stock. Required: Prepare the income statement for Rule.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.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.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 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.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.
- 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%.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.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.