The D asenso corp issued 5000 shares of common stock at 100.00 per share. Of this, Eugene owns 500 shares which he acquired at 100 per share. In December, 2013 the corporation declared and paid 25% stock dividend payable in preferred stock. Eugene sold all his stock dividend shares at 120 per share on February 10, 2014. Required: a. Compute the gain or loss on sale of stock dividend shares, assuming that at the time of payment of the stock dividend, the fair market value of the shares of stock are: Common: 110 per share Preferred: 110 per share b. Compute the capital gain due on said sale

The D asenso corp issued 5000 shares of common stock at 100.00 per share. Of this, Eugene owns 500 shares which he acquired at 100 per share. In December, 2013 the corporation declared and paid 25% stock dividend payable in preferred stock. Eugene sold all his stock dividend shares at 120 per share on February 10, 2014. Required: a. Compute the gain or loss on sale of stock dividend shares, assuming that at the time of payment of the stock dividend, the fair market value of the shares of stock are: Common: 110 per share Preferred: 110 per share b. Compute the capital gain due on said sale

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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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
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.
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.
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.
On January 1, 2018, Al-Kamel Inc. decides to invest in 5,000 shares of Safari stock. On July 15, 2018, Safari declares OR 0.30 per share cash dividend to stockholders of record on July 22, 2018, Safari reports net income of OR 50,000 for 2018. Assume Safari has 25,000 shares of voting stock outstanding during 2018. What would be the percentage of ownership of Al-Kamel Inc. Select one: a. 30% b. 25% c. 10% d. 20%
Steve Company owns shares of common stock in Dave Corporation. As of November 1, 2012, the stock investment had a book value of $600,000. On November 30th, Steve Company decided to issue a property dividend to stockholders, to distribute the investment securities, which have a market value of $760,000. Steve Company will distribute the securities on December 15th to all stockholders of record as of December 1st. Create the required journal entries for this dividend issuance and payment.
Ivy Corp declared a share capital dividend entitling its shareholders to one additional share for each share held on June 1, 2021. At the time the dividend was declared, the market value was P100 per share and the par value was P50 per share. On this date, Ivy had 65,000 shares issued and 5,000 shares in the treasury.How much is the amount to be debited to retained earnings on the declaration of dividends?
14. Rogelio sold 200 common shares of stock of Gibsons Corporation at P115 per share. Its books of accounts showed the following record of purchases of common shares: Date Purchases January 24, 2016 February 5, 2016 April 20, 2016 200 shares at P100 per share 200 shares at P110 per share Received 5% stock dividends If the costing of the shares is based on the moving average method, the gain on the sale of the shares is: P 3,000 1,000 None a. С. b. 2,000 d. 15. If the costing of the shares above are based on the first-in first-out method, the gain on the sale of the shares is: P 3,000 2,000 a. 1,000 3,954 С. b. d. CS Scanned with CamScanner
(Give the exaplanation of formula and concept.do not provide plagarised content otherwise i dislike) Isle Royale Inc. bought 22,500 shares of the voting common stock of Lake Clark Company in January 2023. In December, Lake Clark Company announced $202,900 net income for 2023 and declared and paid a cash dividend of $8.00 per share on all 202,000 shares of its outstanding common stock. Calculate Isle Royale Inc.'s dividend revenue from Lake Clark Company in December 2023.○ $180,000○ $22,600○ $0○ $1,616,000
On June 1, 2016, Pat Corporation declared a bonus issue entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the fair value was P10 per share and the par value was P5 per share. On this date, Pat had 600,000 of ordinary shares outstanding. What entry should Pat make to record this transaction? A. Retained Earnings 6,000,000 Share Dividends Distributable 3,000,000 Share Premium 3,000,000B. Share Dividends Payable 6,000,000 Share Dividends Distributable 3,000,000 Share Premium 3,000,000C. Retained Earnings 3,000,000 Share Dividends Distributable 3,000,000D. No entry
2) Jameson Company earned net income of $75,000 during the year ended December 31, 2018. On December 20, Jameson declared the annual cash dividend on its 8% noncumulative preferred stock (par value, $150,000) and a $0.50 per share cash dividend on its common stock (45,000 shares). Jameson then paid the dividends on January 10, 2019. Prepare the journal entries to record the declaration and the distribution of the dividends.
On March 22, 2023, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21 per share. On May 19, 2023, the company sold 300 of these shares in the open market at a price of $24 per share. Required: Use the horizontal model (or write the entry) to show the effects on Amelia, Inc.'s financial statements of: a). The purchase of the treasury stock on March 22, 2023. The sale of the treasury stock on May 19, 2023. b).