Terry Company began operations on January 1, 2019, with an investment of $62,000 by each of its two stockholders, or a total of $124,000. Net income for its first year of business was $218,000. During the year, the company paid dividends of $30,000 each of its two stockholders. How much is the company's ending Stockholders' Equity on December 31, 2019? Select one: a. $216,000 b. $278,000 c. $248,000 d. $282,000
Q: On January 1, 2021, total assets for Liftoff Technologies were $425,000; on December 31, 2021, total…
A: Accounting Equation; Total Assets=Total liabilities + Total Stockholders Equity
Q: opening balance of Retained earnings
A: Retained earnings is the portion of profits retained by the entity to be used in its revenue…
Q: On January 1, 2019, Miller Corporation had retained earnings of $7,800,000. During 2019, Miller…
A: Retained earnings refer to the amount earned by the organization till the date of preparation of the…
Q: On J anuary 1, 2019, Castillo Company had a retained earnings balance of $206,000. During the year,…
A: Solution Retained earning are the amount of profit a company has left over after paying all its…
Q: WHITE Company began operations on January 1, 2021 with P1,000,000 from the issuance of shares and…
A: We know; as per accounting equation- Total Liabilities + Shareholders' equity = Total Assets
Q: The King Mattress Company had the following operating results for 2018-2019. In addition, the…
A: Answer :- correct option is 4.6 .
Q: Terry Company began operations on January 1, 2019, with an investment of $62,000 by each of its two…
A:
Q: Lyon Company shows the following condensed income statement information for the year ended December…
A: EPS: EPS stands for Earnings per share. It tells about the profit earned per share. EPS = ( Net…
Q: ABC Company began operations on January 1, 2021 with P2,000,000 from the issuance of shares and…
A: Given that, share capital = P2000000 Borrowed funds = P450000 Net income = P400000 cash dividend =…
Q: Ringmeup Inc. had net income of $112,400 for the year ended December 31, 2019. At the beginning of…
A: Basic earnings per share = (Net Income - Preference Dividend)/ Weighted number of shares outstanding
Q: XYZ Company is doing business for many years. The company had opening balance of Retained earnings…
A: Retained earnings are the number of earnings that are attributable or distributable to the…
Q: Community Company went into business on January 1, 2017 when it issued 100 shares of stock for a…
A: The statement of stockholder's equity is prepared to adjust the retained earnings and find ending…
Q: The following information and transactions took place during 2019, perform and explain the question…
A: Journal entries refer to the classification and recording of daily transactions in the books of…
Q: Ringmeup Inc. had net income of $186,400 for the year ended December 31, 2019. At the beginning of…
A: Basic Earnings per share of common stock is computed by dividing the Net income less preferred…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Financial StatementFinancial Statement is the combination of the three major reports on a business.…
Q: During the first month of operations, May 2020, Marvel Corporation completed the following…
A: Supplies expense=In hand at the beginning-In hand at the end=$750-$250=$500
Q: Ringmeup Inc. had net income of $197,300 for the year ended December 31, 2019. At the beginning of…
A: Earnings Per Share: =Earnings attributable to shareholders / Weighted average number of shares…
Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: At the beginning of 2021, Artichoke Academy reported a balance in common stock of $150,000 and a…
A: Stockholders' equity: Stockholders' equity means the remaining net assets available to shareholders.…
Q: Ringmeup Inc. had net income of $106,300 for the year ended December 31, 2019. At the beginning of…
A: Computation of weighted average outstanding sharesFor the year ended December 31, 2019 Particulars…
Q: Fashion, Inc. had a Retained Earnings balance of $13,000 at December 31, 2021. The company had an…
A: As the questions asked have more than 1 question, the first question is answered. If you want the…
Q: The following transactions occurred at Peter's Third Company in 2022. 1. The company reacquired as…
A: Given, Borrowings from bank = $240,000, Purchase of Treasury Stock = $48,000.
Q: At the beginning of its fiscal year July 1, 2020, RPC had a balance of $2,150,000. It had generated…
A: The Statement of Retained Earnings provides an overview of the Changes in the company's retained…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Effect of given transactions on balance sheet:
Q: On December 31, 2020, Blue Devil Inc. has a ending balance of total shareholders' equity of…
A: Dividends means part of profits that is distributed to the shareholders of the company. It can be in…
Q: Fashion, Inc. had a Retained Earmings balance of $19.000 at December 31, 2021. The company had an…
A: Formulas: Beginning Retained earnings balance + Net Income – Dividends = Ending retained earnings…
Q: c. Calculate the number of shares of common stock that are issued and the number of sha outstanding.…
A: Number of shares issued = Value of shares issued/ Par value of shares Number of shares outstanding =…
Q: The Opening balance of Retained earnings at beginning of the year 2019
A: Retained earnings is the accumulated earnings which company has earned over its operating years. The…
Q: Moche Company named net income of $105,000 during the year ended December 31, 2018. On December 15,…
A: The dividend is the portion of retained earnings of the company which is distributed to the…
Q: Fashion, Inc. had a Retained Earnings balance of $15,000 at December 31, 2021. The company had an…
A: Introduction: Dividends are cash payments made by a company to its stockholders. Dividends are…
Q: For the year ended December 31, 2019 Revenues: Commissions revenue $85,000 Expenses: Salary expense…
A: Balance sheet: It contain all items of Assets and liabilities. Balance sheet is a statement prepared…
Q: Chuckwagon Company went into business on July 1, 2020. During 2020, following are some of the…
A: A cash account, also known as a cash book, is a ledger under which all cash transactions are…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Required journal entries:
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: Effect of given transactions on income statement: Results of the excel sheet is as follows:
Q: dividends
A: Formula to calculate net income is given by: Net income = Increase in retained earnings + dividends…
Q: At the beginning of 2020, Buck Corporation had assets of $540,000 and liabilities of $320,000.…
A: The accounting Equation shows assets are equal to the sum of liabilities & capital. It is based…
Q: Specific Motor Inc., makes and sells commercial vehicles. By December 31, 2018, the company reported…
A: The income statement is a financial statement that represents the financial performance of the…
Q: Ringmeup Inc. had net income of $151,000 for the year ended December 31, 2019. At the beginning of…
A: Calculation of Basic Earnings per share: Thus, Basic Earnings per share is $2.84
Q: Casello Mowing & Landscaping's year-end 2018 balance sheet lists current assets of $435,200, fixed…
A: Total Stockholder equity = Total Assets - Total Liabilities
Q: On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders'…
A: A statement of shareholders' equity details the changes within the equity section of the balance…
Q: Lucas Company reports net income of $5,125 for the year ended December 31, 2019, its first year of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Titanic Corporation's net income for the year ended December 31, 2019, is $380,000. On June 30,…
A: Ending balance of retained earnings can be computed by adding the net income and deducting the…
Q: On August 1, 2020, Fickle Feline Inc. declared $184,000 of dividends payable to shareholders on…
A: Journal entries in the account books is the primary record that is being maintained for all the…
Q: Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands…
A: Given information :- Company outstanding share 333,000 Current market price(P0 ) $41…
Q: At the beginning of its fiscal year on April 1, 2018, Extra Vienna Oil Corp, had a balance of…
A: Retained earnings (RE) is the amount of net income left over for the business after it has paid out…
Q: At the beginning of 2020, Tucker Corporation had assets of $350,000 and liabilities of $175,000. At…
A: Shareholders' funds included the value of the common stock, the value of preferred stock retained…
Q: Ringmeup Inc. had net income of $148,800 for the year ended December 31, 2019. At the beginning of…
A: Weighted average number of outstanding shares = 38,000×412 + 53,000×712 + 48,300×112…
Q: On December 28, 2020, X Corporation declared $26,000 dividends payable on January 28, 2021. On…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Chuckwagon Company went into business on July 1, 2020. During 2020, Chuckwagon had the following…
A: The question is multiple choice question.The question is related to Change in the total assets due…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
- Balance Sheet Calculations Cornerstone Development Companys balance sheet information at the end of 2019 and 2020 is provided in random order, as follows: Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for 25 per share, (b) earned net income of 20,600, and (c) paid dividends of 1 per share on the common stock outstanding at year-end. Required: Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)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.
- 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.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.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.
- 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%.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.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