Listed below are a few events and transactions of Kodax Company. 2017 Jan. 2 Purchased 20,000 shares of Grecco Co. common stock for $414,000 cash plus a broker's fee of $3,600 cash. Grecco has 100,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $2.10 per share. Dec. 31 Grecco announced that net income for the year is $495,900. 2018 June 1 Grecco declared and paid a cash dividend of $2.70 per share. Dec. 31 Grecco announced that net income for the year is $715,400. Dec. 31 Kodax sold 12,000 shares of Grecco for $350,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

Listed below are a few events and transactions of Kodax Company. 2017 Jan. 2 Purchased 20,000 shares of Grecco Co. common stock for $414,000 cash plus a broker's fee of $3,600 cash. Grecco has 100,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $2.10 per share. Dec. 31 Grecco announced that net income for the year is $495,900. 2018 June 1 Grecco declared and paid a cash dividend of $2.70 per share. Dec. 31 Grecco announced that net income for the year is $715,400. Dec. 31 Kodax sold 12,000 shares of Grecco for $350,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 8SPA

See similar textbooks

Similar questions

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.
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.
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
Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
The following events are for Toronto Investment Inc.: 2023 Jan. 14 Purchased 18,200 shares of Quatro Inc. common shares for $161,900 (including transaction fees of $50). Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.10 per share. Dec. 31 Quatro announced that profit for the year amounted to $655,000. 2024 April 1 Quatro declared and paid a cash dividend of $3.20 per share. Dec. 31 Quatro announced that profit for the year amounted to $738,100. 31 Toronto sold 6,500 shares of Quatro for $106,820. Required: Prepare general journal entries to record each transaction. (Round per share calculations to 2 decimal places. Round your final answers to the nearest dollar.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the purchase of investment. Note: Enter debits before credits. Date Jan 14, 2023 Record entry General Journal Clear…
Way Inc. obtained significant influence by buying 40% of Sonic Inc's 4,800 outstanding shares of common stock at a cost of $8 per share on January 1, 2025. On December 31, Sonic declared and paid a $2,900 cash dividend and reported net income of $18,900 for the year. Post all transactions and determine the account balance of the Stock Investments account. Jan. 1 Dec. 31 Dec. 31 Bal. Stock Investments 15,360 Dec. 31 Revenue from Stock Investments Dec. 31
2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) S Carrying value per share 3.Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port. Equity 8.42 decreases by S 144.800
The following events are for Toronto Investment Inc.: 2023 Jan. 14 Purchased 18,520 shares of Quatro Inc. common shares for $169,900 (including transaction fees of $50). Quatro has 92,600 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.90 per share. Dec. 31 Quatro announced that profit for the year amounted to $663,000. 2024 April 1 Quatro declared and paid a cash dividend of $4.00 per share. Dec. 31 Quatro announced that profit for the year amounted to $746,100. 31 Toronto sold 7,300 shares of Quatro for $110,820. Required: Prepare general journal entries to record each transaction. (Round per share calculations to 2 decimal places. Round your final answers to the nearest dollar.) View transaction list Journal entry worksheet < 1 2 3 4 Record the purchase of investment. Note: Enter debits before credits. Date Jan 14, 2023 5 General Journal 6 Debit Credit
Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 72,000 shares of Grecco Company common stock for $566,000 cash. Grecco has 216,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. September 1 Grecco declared and paid a cash dividend of $1.10 per share. December 31 Grecco announced that net income for the year is $513,900. Year 2 June 1 Grecco declared and paid a cash dividend of $3.90 per share. December 31 Grecco announced that net income for the year is $745,400. December 31 Kodax sold 12,000 shares of Grecco for $125,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount. View transaction list Journal entry worksheet 1 2 3 4 5 6 Purchased 72,000 shares of Grecco Company common stock for $566,000 cash. Grecco has 216,000 shares of common stock…
Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 40,000 shares of Grecco Company common stock for $431,000 cash. Grecco has 120,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. September 1 Grecco declared and paid a cash dividend of $1.70 per share. December 31 Grecco announced that net income for the year is $489,900. Year 2 June 1 Grecco declared and paid a cash dividend of $1.70 per share. December 31 Grecco announced that net income for the year is $705,400. December 31 Kodax sold 9,000 shares of Grecco for $160,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) View transaction list Journal entry worksheet < 1 2 Note: Enter debits before credits. Date September 1, Year 1 3 Cash 4 Grecco declared and paid a cash dividend of $1.70 per share. 5 6…
Pleaase provide solution for the following. Answers are already given 9. Pineapple Co. reported total assets of P2,100,000 and total liabilities of P1,360,000 in its December31, 2020 balance sheet. The following transactions occurred during 2021:• On August 1, Pineapple Co. issued an additional 10,000 ordinary shares at P25 per share• The company paid dividends totaling P160,000• Net income during the year was P220,000• Reacquired treasury shares of 4,000 at P30; subsequently reissued 2,000 shares for P39 per share• No other changes occurred in Stockholders’ Equity during the year.What is the balance of the Stockholders’ Equity section in its December 31, 2021 balance sheet?a) P800,000b) P1,008,000-answerc) P1,050,000d) P1,370,000 12. In 2020, Lychee Appliance Manufacturing introduced a fully automatic washing machine with a dryer.The sales price per unit, which comes with a warranty, is P40,000. The company offers a three-yearwarranty against defects and provides service other than…