Pulsar Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Pulsar Optics on April 30 of the current year as follows: Preferred 1% Stock. $25 par (300.000 shares authorized. 150.000 shares issued) $3.750.000 Paid-In Capital in Excess of Par-Preferred Stock 750.000 Common Stock. $100 par (700.000 shares authorized, 300,000 shares issued) 30,000,000 Paid-In Capital in Excess of Par-Common Stock 2,400,000 Retained Earnings 60,000,000
Q: Rand, a self-employed salesperson, purchased two tickets to a September 2021 concert for himself and…
A: The business expense means the expenses that are related to the business. This expense includes…
Q: What is the major difference between a for-profit and a not-for-profit organization?
A: Organization is considered to a be setting under which the group of people comes together and these…
Q: Varsity Supplies & Things is a family-owned store. The business is now approaching the end of the…
A:
Q: In June, current year, Wendy Winger organized a corporation to provide aerial photography services.…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use…
A: We can use following formula to find the annual effective rate form given APR I = (1 + ( r/n ))n…
Q: A mortgage balance of $26,000 is to be repaid over a 12-year term by equal monthly payments at 5.1%…
A: The following information is given in the question, Mortgage balance= $26,000 Term= 12 years Rate of…
Q: Flint Tooling Company is considering replacing a machine that has been used in its factory for 4…
A: Differential Analysis Differential analysis is a method for making decisions that analyses the net…
Q: Computing and Recording Interest Capitalization The following information is from Bowin Inc. for a…
A: Interest capitalization refers to the unpaid interest that is to be added to the amount of the loan.…
Q: On February 3, 2021, the board of directors of Thompson & Thompson Builders voted to distribute…
A: Solution... Annual preferred Dividend Number of Preferred dividend * par value per Share * rate…
Q: P8-3A Make or Buy Allen Corporation currently makes the nylon convertible top…
A: Qualitative factors are those that are difficult to measure with concrete facts. Although…
Q: Listed below are several transactions that took place during the first two years of operations for…
A: Net Operating cash flow = Cash receipts - Cash disbursement Accounts receivable at the end= accounts…
Q: * Question 2 Formatone plc produced the following trial balance as at 30 June 20X6: £000 £000 Land…
A: The performance of a company's financial statements, including a positive and expanding cash flow…
Q: Outline the difference between design capacity and effective capacity
A: Designing capacity is associated with the maximum designs service or output that can be generated so…
Q: 9. Stocks that don't pay dividends yet Goodwin Technologies, a relatively young company, has been…
A: Formula to calculate Horizon value: Po = D0 * (1+g)/ (R-g) Where, P0 = Stock value D0 = Current…
Q: Amounts billed to customers for services rendered Cash collected from credit customers Cash…
A: The income statement is prepared to record the revenue and expenses of the current period. The…
Q: CHA Cash Accounts receivable Inventory Buildings and equipment Goodwill Total Assets Accounts…
A: Purchase consideration indicates the payment made by the acquiring company to the subsidiary company…
Q: Tombro Industries is in the process of automating one of its plants and developing a flexible…
A: Formulas: Throughput time = Process Time + Inspection time + Move Time + Queue Time, Manufacturing…
Q: Monday Inc is a wholly 100% subsidiary to Malaysian company, Blue Bhd. Monday Inc is located in a…
A: MFRS 121 The Effects of Changes in Foreign Exchange Rates is issued by the MASB for application in…
Q: Cozy Inc. incurred and paid the following costs during the year ended December 31, 2021:…
A: Journal entry is the primary step to record the transaction in the books of accounts. Research and…
Q: 3. Scott purchased a house for $375,000. She made a down payment of 20.00% of the value of the house…
A: Purchase Price of House = $375,000 Interest Rate = 4.72% compounded semi- annually
Q: Variable costing income will be greater than absorption costing income when: a. Sales is greater…
A: If under variable costing, unit sold are less than units produced, the fixed manufacturing overhead…
Q: Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined…
A: When a person reaches retirement age, they choose to permanently leave the workforce behind. The…
Q: Discuss the accounting for premiums under IFRS 15.
A: Under IFRS 15, businesses must account for premiums as revenue when the underlying goods or services…
Q: Identify three or more accounting activities that takes place primarily at year-end, as opposed to…
A: Under the process of accounting, various activities are performed throughout the accounting period…
Q: (a) Carla Vista Corporation did not declare any dividends in 2022 or 2023. What is the amount of…
A: Dividend is considered as the income for the shareholders. It is paid by the company out of the…
Q: Calculate the net working capital of the company Using the following information.
A: Net working capital is the difference between current assets and current liabilities. If a company…
Q: GS = $390,000 •GM = 56% •Store size: 20 ft x 25 ft. •2,500 transactions •5,000 units sold…
A: Answer : Gross margin =( Revenue - COGS)/Revenue*100 56 = Revenue - $390,000/Revenue *100 56Revenue…
Q: • LewisCo reports gross income of $111,550 and other property-related expenses of $66,800 and uses a…
A: Determination of Lewis Co's Taxable Income Particulars Amount Gross Income 111,550 (-)…
Q: Please show the calculations for each answer.
A: 1. Current Assets Vary with the Sale Fixed Assets increase by 150,000 2. Net Income is 5% of…
Q: 3. Show how the bond interest expense and the bonds payable should be reported on the annual…
A: Bond is a financial instrument which is used for the purpose of borrowing by the company. The one…
Q: 11. More on the corporate valuation model Praxis Corp. is expected to generate a free cash flow…
A: Formula to calculate Horizon value: Horizon value of firm = FCF * (1+g)/ (R-g) Where, FCF = Free…
Q: Varsity Supplies & Things is a family-owned store. The business is now approaching the end of…
A: The cash budget is the estimation of total receipt and payment during the given period. It can be…
Q: Calculate the retail price of Atenolol 50 mg tabs #30 90 tabs AWP $ 55.00 What is the retail price…
A: The retail rate is the very last rate that an excellent is offered to clients for, the ones being…
Q: Project B You are given the following data regarding the Earned Value results of a project. There…
A: In the project management process company estimates the cost of the project and revenue for a…
Q: s presently having a machine whose book value is Rs 7,50,000 and it is estimated to have a useful…
A: Depreciation - Depreciation is a term that describes two related ideas: first, the actual decline in…
Q: 1. Read the following case carefully and answer the given questions. The Accounts clerk of Al-Izz…
A: The Professional Code of Ethics states that auditors should follow integrity and objectivity at…
Q: ent time one can enter five-year swaps that exchange LIBOR for 8%. An off-market swap would be…
A: Debts - The sum that the borrower owes the lender constitutes their debt, in its most basic form. A…
Q: Explain in detail how can bank recover from a significant net loss due to unrealized securities.
A: The first step that a bank would take to recover from a significant net loss due to unrealized…
Q: what is The Objectives of the Financial Executive?
A: The management of a division inside a department is under the control of a financial executive from…
Q: Use the formula FV = P(1 + R)N Barry Newman's savings account has a balance of $4,088. After 25…
A: Interest is the amount which is paid for the amount borrowed or received for the amount given or…
Q: E11.3 (LO 2), AP During its first year of operations, Mona Corporation had these transactions…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Question 3: In preparing its accounts for the year ended 30 June 20X5, XXY plc has the following…
A: When a cost that is incurred will have been used, or expired in a year or less, it is typically…
Q: The following data are accumulated by Lone Star Security in evaluating two competing investment…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The unadjusted trial balance of Digit Line Co., as of July 31, 2013 is provided below. The company…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: A company is thinking about some machines renting for manufactury; The lease have an mount of 1800…
A: The lease is a written contract between two parties in which one party gives its asset on rent to…
Q: Which of the following may be relied on and cited as authority for a tax position taken on a…
A: A tax function is a function that an entity takes in a formerly filed tax go back or expects to soak…
Q: How much goodwill should be recognized by Alto Company when recording the purchase of Franz?
A: Goodwill is an intangible asset. It arises when a company buys a existing business. Goodwill is the…
Q: Culver requires $230000 in four years to purchase a new home. What amount must be invested today in…
A: Present value is the concept that states an amount of money today is worth more than that same…
Q: While reporting under IFRS will not be required until 2015 or 2016, we are already beginning to see…
A: The International Financial Reporting Standards or IFRS are the accounting rules that provide…
Q: Laura Hall is the sole owner of Wildhorse Vista Park, a public camping ground near the Crater Lake…
A: Balance sheet: A balance sheet is a statement of assets, liability, and equity. It is prepared after…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 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.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: A. Issued 15,000 shares of 20 par common stock at 30, receiving cash. B. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. C. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. D. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. E. Paid the cash dividends declared in (D). F. Purchased 8,000 shares of treasury common stock at 33 per share. G. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. Recorded the payment of semiannual interest on the bonds issued in (C) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock, 80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.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.Selected stock transactions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 200,000 shares of common stock at 12, receiving cash. b. Issued 8,000 shares of preferred 2% stock at 115. c. Purchased 175,000 shares of treasury common for 10 per share. d. Sold 110,000 shares of treasury common for 14 per share. e. Sold 30,000 shares of treasury common for 8 per share. f. Declared cash dividends of 1.25 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
- Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.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).