Problem 19-6 Share RepurchaseThe balance sheet for Quinn Corporation is shown here in market value terms. There are5,000 shares of stock outstanding.Market Value Balance SheetCashFixed assetsTotal$44,700 Equity $454,700410,000$ 454,700 Total $454,700Instead of a dividend of $1.60 per share, the company has announced a sharerepurchase of $8,000 worth of stock.How many shares will be outstanding after the repurchase? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)What will the price per share be after the repurchase? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)Shares outstandingNew stock price

Shares repurchase refers to the buying back own shares from the market which were previously sold to…

Answered: Problem 19-6 Share Repurchase The…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.13AMCP

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Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?
Chapter 14 Homework The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Comparative Retained Earnings StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained Earnings, Jan. 1 3,704,000 3,264,000 Net Income 600,000 550,000 Dividends: On Preferred Stock (10,000) (10,000) On Common Stock (100,000) (100,000) Increase in Retained Earnings 490,000 440,000 Retained Earnings, Dec. 31 4,194,000 3,704,000 Comparative Income StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales 10,850,000 10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross Profit 4,850,000 4,550,000 Selling Expenses (2,170,000) (2,000,000) Administrative Expenses (1,627,500) (1,500,000) Total Operating Expenses (3,797,500) (3,500,000) Operating…
QUESTION 5 Emma Systems, Inc. declared and issued a 8 percent stock dividend. The company has 720,000 shares authorized and 33104 outstanding The of the stock is $2.90 per share and the market value is $8 per share. par value To record the stock dividend, the debit to Retained Earnings would be S
Problem #28 comprehensive Shareholders' Equity Transactions chareholders' equity of the Rodriguez Corporation on June 30, 2017, is shown below: Share Capital Ordinary Shares- P6 par value, 1,000,000 shares authorized, 250,000 shares issued and outstanding Share Premium-Ordinary P1,500,000 Total Share Capital Retained Earnings Total Shareholders' Equity 820,000 P2,320,000 970,000 P3,290,000 Transactions for the next fiscal year were as follows: a. The board of directors declared a 2-for-1 share split. b. The board of directors obtained authorization to issue 50,000 shares of P100 par value, 6 % non-cumulative preference shares. Issued 12,000 ordinary shares for a building appraised at P96,000. Purchased 8,000 shares of the corporation's ordinary shares for P64,000. Issued 20,000 preference shares for P100 per share. Sold 5,000 shares of treasury stock for P35,000. Declared cash dividends of P6 per share on preference shares and P.20 per share С. d. e. f. g. on ordinary shares. Date of…
PROBLEM NO. 1 Watusi Inc. began operations in January 2021 and reported the following results for each of its 3 years of operations. 2021 P260,000 net loss P40,000 net loss P700,000 net income 2022 2023 At December 31, 2023, Watusi Inc. share capital accounts were as follows. Share Capital-Preference, 6% cumulative, par value P100; authorized, issued, and outstanding 5,000 shares Share Capital-Ordinary, par value P1.00; authorized 1,000,000 shares; issued and outstanding 750,000 shares P500,000 750,000 Watusi Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Watusi began operations. The country law permits dividends only from retained earnings. Instructions a. Compute the book value of the ordinary shares at December 31, 2023. b. Compute the book value of the ordinary shares at December 31, 2023, assuming that the preference shares have a liquidating value of P106 per share.
Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year
Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000…
Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding P1,450,000 Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding Share Premium-Ordinary Retained Earnings 4,000,000 2,400,000 2,700,000 During 2019, the following transactions occurred: Issued 16,000 ordinary shares for P180 cash per share. Purchased 6,000 ordinary shares for the treasury at P200 per share. Shareholders donated 4,000 ordinary shares to the corporation. Sold one-half of the treasury shares acquired last Jan. 23 for P210 per Jan. 10 23 Mar. 2 14 share. Sold the donated shares at P210 per share. Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. 14 July 15 Received subscriptions to 18,000…
Exercise 6-2 (Cash and Share Capital Stock Dividends) The statement of financial position of JKL Corp. as of December 31, 2020 reports the following shareholder equity accounts: Ordinary Share Capital, P50 par, 100,000 shares outstanding Ordinary Share Premium Retained Earnings P5,000,000 2,500,000 3,000,000 During 2021, the following dividend distributions were made: April 1 Declared a cash dividend of P7 per share payable on May 2 to shareholders of record of April 15. June 1 Decdared a 10% stock dividend distributable on July 15 to shareholders of record of June 30. Stocks are selling on this date at P65 per share Instructions: Record the declaration and distribution of each of the above-mentioned dividends. Share Favourite Delete Edit More ... 归 0
Question Content Area A corporation purchases 7,546 shares of its own $2 par common stock for $16 per share, recording it at cost. What will be the effect on total stockholders' equity? a. increase by $105, 644 b. increase by $120,736 c. decrease by $120, 736 d. decrease by S 105,644
PROBLEM 3: EXERCISES 1. Dinakdakan Co. declared P50 cash dividends per share. On the date of declaration, Dinakdakan Co.'s equity was as follows: 1,600,000 Share capital, P100 par Subscribed share capital Share premium Retained earnings vib 440,000 200,000 908,000 (288,000) 140,000 Treasury shares, P120 cost Other components of equity Total shareholders' equity 3,000,000-
Problem 3 National Supply's shareholders' equity included the following accounts at December 31, 2022: Ordinary share capital, P1 par Share premium-ordinary Retained earnings P 6,000,000 30,000,000 20,000,000 Each share was originally issued at an average price of P6 per share. National Supply reacquired its ordinary shares in two separate transactions and later sold shares. February 15 February 17 Reacquired 300,000 shares at P8 per share Reacquired 300,000 shares at P5.50 per share November 9 Sold 200,000 shares at P7 per share (assume FIFO). Prepare the entries for each of the transactions under each of two separate assumptions: 1. The shares are retired. 2. The shares are accounted for as treasury shares,

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