Required information [The following information applies to the questions displayed below.) On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock-$10 par value, 78,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 780,000 340,000 730,000 $ 1,850,000 (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of shares outstanding after the distribution is made. Answer is complete but not entirely correct.
Q: At the beginning of its current fiscal year, Willie Corporation' s balance sheet showed assets of…
A: A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or…
Q: Selected ledger accounts for Realm Company are given below for the just-completed year: Raw…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: To be considered an asset (in accounting), a resource must_ Select one or more: (Select all that…
A: A resource with economic worth that a person, business, or nation owns or controls and is expected…
Q: Celery Company has assets of $ 150,000, liabilities of $90,000, and equity of $60,000. It buys…
A: Accounting equation is a basic equation which is followed in financial accounting for the purpose of…
Q: ntribution margin xed expenses: Depreciation Liability insurance Program administrators' salaries…
A: Segement margin shows the profit (loss) of each component indiviually of the business by comparing…
Q: On June 30, 2016, Flint Limited issued 13.75% bonds with a par value of $802,000 due in 20 years.…
A: Journal entry is defined as the one which is used for recording the business transactions in the…
Q: Fraser Manufacturing is considering producing two new products. Product 11-A will generate revenues…
A: Given:Product 11-A revenues (R11A) = $84,000Product 22-B revenues (R22B) = $98,000
Q: Oriole Inc. reported Income from Continuing Operations before taxes during 2025 of $796,100.…
A: The operating income amounts to the operating income earned by a company after reducing all the…
Q: Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy…
A: A financial statement is a statement used by the company to record and convey the financial…
Q: Foggy Co. has the following operating data for its manufacturing operations: The company has decided…
A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…
Q: ProWasher is the defendant in a patent infringement lawsuit filed by Sue Case over ProWasher’s use…
A: A contingent liability is a potential liability that may or may not occur, depending on the outcome…
Q: (D) Would it be better for a married couple with two equal incomes to file jointly or separately?…
A: Filing status is a tax classification that defines an individual's or couple's legal standing…
Q: Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined…
A: The predetermined overhead rate:Predetermined overheads rate is the ratio of estimated overhead cost…
Q: Grin Company manufactures digital cameras. In January, Grin produced 4,000 cameras with the…
A: Product cost includes all the direct expenses and overheads related to manufacturing the product…
Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…
A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…
Q: Lanny and Shirley divorced in 2018 and do not live together. Shirley has custody of their child,…
A: Alimony is defined as the amount paid to the former spouse as a separate maintenance under a divorce…
Q: The following financial information is available for Wildhorse Corporation. (in millions) Average…
A: Payout ratio The payout ratio can be calculated by dividing the dividend issued during the year by…
Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…
A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…
Q: Kingsport Containers Company makes a single product with wide seasonal variations in demand. The…
A: Estimated fixed manufacturing overhead cost is fixed for a specific time period. Therefore, the…
Q: Items Balance, Jan. 1, 2025 (a) Service Cost (b) Interest Cost (c) Actual Return (d) Contributions…
A: The pension plan refers to the retirement plans that require an employer to contribute and these…
Q: Mahon Corporation has two production departments, Casting and Customizing. The company uses a…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Interpreting and Applying Disclosures on Property and Equipment Following are selected disclosures…
A: Calculation of cost on which depreciation would be calculated.Cost = Average of both years (to…
Q: Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book…
A: The main reason for deferred income tax advantages is frequently the transient discrepancies between…
Q: The following balances (in thousands of dollars) are from the accounts of Birwood Furniture: January…
A: Answer:- Cost of goods manufactured:- It is the total cost of completed finished goods transferred…
Q: Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based…
A: Predetermined overhead= Estimated total overhead/Estimated direct labor hoursEstimated total…
Q: Max, a single taxpayer, has a $320,000 loss from his sole proprietorship in 2023. How much of this…
A: Tax cuts and Jobs Act (TJCA) created a provision to restrict business loss to set off in excess of…
Q: 1. Julius, a married taxpayer, makes gifts to each of his six children. A maximum of twelve annual…
A: The annual gift tax exclusion allows individuals to gift a certain amount per year to any number of…
Q: Green Wave Company plans to own and operate a storage rental facility. Required: For the first month…
A: Every financial transaction has a dual effect one is debit and another is credit. Assets and…
Q: Perference shareholders are given preference in the decision-making process of a company. True False
A: Preference shareholders or those shareholders to whom preference shares are allotted and are…
Q: Number of units sold Selling price per unit Variable selling expense per unit Variable…
A: TRADITIONAL COSTING SYSTEMTraditional System cost analysis is done by product.Under Traditional…
Q: The following information is available for the year ended December 31: Beginning raw materials…
A: Raw Materials Used in Production is computed by deducting Ending Raw Material from the Raw Material…
Q: On January 2, Bering Company disposes of a machine costing $53,000 with accumulated depreciation of…
A: When the sale proceeds from the disposal of assets is greater than the book value of the asset then…
Q: Brief Exercise 4-4 Multiple-step income statement [LO4-1, 4-3] The following is a partial year-end…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: prepare the owner’s equity statement for the year. ORIOLE COMPANY Owner’s Equity Statement choose…
A: Owner equity statement: Equity is the fund used by owner in the business. To calculate closing…
Q: 1. Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of…
A: Contribution is the difference between the selling price and variable costs. Break-even point means…
Q: Prepare an income statement for Rex Manufacturing for the year ended December 31 using the following…
A: Income statement is a financial statement that shows the profitability, total revenue and total…
Q: Colt Company uses a weighted-average process cost system to account for the cost of producing a…
A: Direct material is one of the costs incurred on the making of the goods. It is a direct cost as it…
Q: Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means an indirect cost rate.Predetermined overhead…
Q: Joint Cost Allocation-Market Value at Split-off Method Gripturn Inc. produces two different styles…
A: To allocate joint production cost using the market value at split-off method , the joint cost is…
Q: After closing the accounts on July 1, prior to liquidating the partnership, the capital account…
A: A partnership is an agreement between two or more partners to share the profit and losses in an…
Q: Calculate the following balances to be reported in the financial statements dated December 31. 1.…
A: Valuation Allowance for Available-for-Sale Securities:The valuation allowance for available-for-sale…
Q: During January, its first month of operations, Sheridan Company accumulated the following…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Crane Industries carries no inventories. Its product is manufactured only when a customer's order is…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: January 1, 2022 Assets Liabilities Stockholders' equity December 31, 2022 Assets Liabilities…
A: The stockholders equity refers to the the owners investment in a business. It also denoted by…
Q: Blue Company provided the following information on selected transactions during 2024: Dividends paid…
A: A cash flow statement indicates cash inflow and outflow information for a particular time period and…
Q: costs of $315,000. The current sales price is $87. Note: The r are interdependent. For example, the…
A: To calculate the level of sales required , the fixed cost plus desired profit is divided by the…
Q: Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per…
A: Factory overhead refers to indirect manufacturing costs such as utilities and maintenance, not…
Q: Information from the financial statements of Henderson-Niles Industries included the following at…
A: Introduction:Earning Per Share means the earnings share or portion earned by each share of a company…
Q: Entries for Flow of Factory Costs for Process Costing Keoni Inc. manufactures a sugar product by a…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Sunland Company reported the following year-end information: beginning work in process inventory,…
A: Cost of Goods Sold (COGS) represents the total expenses directly associated with producing goods or…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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.Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock dividend when the stock is selling for 30 per share. Prepare the journal entry on the date of declaration to record Pickenss stock dividend.
- 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.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).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?
- The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 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.Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.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.
- 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.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.