Question 1 of 3 | Page 1 of 3 In its first year of operations, Snake Corporation had the following transactions relating to its convertible preferred shares and common shares. The preferred dividend rate is $2 per share. Jan. 1 Issued 10,000 common shares at $10 Feb. 1 July 1 per share. Issued 3,000 preferred shares for $41 per share. Declared and paid annual Common share dividends by 1$ for each share Instructions a) Journalize the transactions

Question 1 of 3 | Page 1 of 3 In its first year of operations, Snake Corporation had the following transactions relating to its convertible preferred shares and common shares. The preferred dividend rate is $2 per share. Jan. 1 Issued 10,000 common shares at $10 Feb. 1 July 1 per share. Issued 3,000 preferred shares for $41 per share. Declared and paid annual Common share dividends by 1$ for each share Instructions a) Journalize the transactions

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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000 shares authorized and 45,000 shares outstanding. Assume that Eastern declares and pays preferred dividends quarterly. Required: Prepare the journal entry to record declaration of one quarterly dividend. Prepare the journal entry to record payment of the one quarterly dividend.
STOCK DIVIDENDS Kaufman Company currently has 200,000 shares of 1 par common stock outstanding. On March 15, a 10% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at 5 per share. 1. Prepare journal entries for the declaration and distribution of the 10% common stock dividend. 2. Assume Kaufman Company declared a stock dividend of 30% rather than 10%. Prepare journal entries for the declaration and distribution of the 30% common stock dividend.
#24At the beginning of current year, AILEEN company was authorized to issue share capital of120,000 shares with P50 par value. The entity had the following share capital transactionsduring the year:Jan 1 Sold 96,000 shares at P60 per shareMay 1 Reacquired 4,000 treasury shares at P65 per share.July 1 Approved a share split of 5 for 1.Oct. 31 Declared and issued a 10% share dividend when the market value of a share isP25.Dec. 31 Reissued all of the treasury shares at P30.Dec. 31 Net income for the year was P3,600,000.What total amount should be reported as share premium? 2,052,000 pls provide correct solution for the given answer
On January 1, 200B Earth Corporation showed the following balances: II. Share Capital, 100 par, 200,000 Shares authorized, 80,000 shares issued Share Premium Retained Earnings 8,000,000 500,000 6,000,000 The net income for two consecutive years as well as the other transactions affecting the retained earnings is summarized below: 200B Dec. 31 The net income for the year was 3,000,000 Dec. 31 A cash dividend of 15 per share was declared payable on January 31, 20OC, to all shareholders of records as of January 15, 200C. 2000 Jan 31 Paid the cash dividends declared in 200B Dec. 31 The net income for the year was 3,500,000 Dec. 31 Declared a 10% stock dividend. The market price of the share capital on this date was 125 per share Required: a. Journal entries to record the above transactions including the entry to close the Income and Expense Summary Account (S b. Balance of the Retained Earnings account as of: b.1 December 31, 200B b.2 December 31, 200C
#21During the year, Gilbert company issued 4,000 shares with P100 par value in connection with ashare dividend. The market value per share on the date of declaration was P150. Theshareholders’ equity before issuance of the share dividend was as follows:Share capital, P100 par, 20,000 shares outstanding 2,000,000Share premium 3,000,000Retained earnings 1,500,0009What is the retained earnings balance immediately after the share dividend? 1,100,000 pls provide correct solution for the given answer
uhe beginning of current year, Jade Company reported the following sharcholders' equity: Share capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 8,100,000 ( 900,000) All of the outstanding and treasury shares were originally issued for PIl per share. During the current year, the following events or transactions occurred relating to shareholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April 1 and payable on April 15. This was the first dividend ever declared. • September 15- The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of PO.20 per share payable carly next year. * Atcurrent year-end, the entity is being sued by two separate parties for…
APPENDIX t: C E t DIVIDEND CALCULATIONS est The Sisters Corporation has 1000 shares of its $50 par, 6% cumulative preferred stock, 1,000 shares of its $40 par, 7% non-cumulative preferred stock, and 5.000 shares of its $1 par common stock outstanding. During its first four years of operation, the following cash dividends were declared by the Board of Directors of Sisters Corporation and were paid. e Calculations Year Amount Cumulative PS: 20X4 $0 20X5 $9,800 20X6 $10,000 Non-Cumulative PS: 20X7 $12,000 REQUIRED: For each year, compute the amount of cash dividends that would go to each of the three classed of capital stock. Show all computations! 20X4 20X5 20X6 20X7 Cum. Pref. Stock $0 Non-Cum. Pref. Stock $0 Common Stock $0
Question 10 On January 1, 20B, Nathalie company had 150,000 ordinary shares outstanding. During the current year, the following events occurred: March 1, 2-for-1 share split; June 1, issued 45,000 additional shares; September 1, 20% share dividend. What is the weighted average number of shares outstanding for the year? CHOICES: 414,000 391,500 345,000 384,000
Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year
Question 4. at the beginning of the year LKS ltd has the following balances share capital Common shares up to a max 3,000,000 authorized 800,000 shares issued at average price per share $4 cumulative Preferred shares up to a max 60,000 shares issued at the average share price Retained earnings opening balance $6 500000 authorized $120 the following transactions occur during the year a) the board declares a cash dividend of $800,000 2-May (the company failed to pay last years preferred dividend) b) the company pays the cash dividend 9-May c) the company does a 3:1 stock split to increase the marketability of the shares d) the company issues 10,000 600,000 (Common only) 14-May 29-May $4 preferred shares to the accountant to cover Repair expenses of e) the company makes a net income of 800,000 $200,000 Create the entry to close the income summary on May 31
4 An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary shares – 250,000 Share Option (exercise price of P 60), issued on February 1 (Average Market Price, P 75)– 48,000 5% Preference share capital, P100 par, convertible and cumulative, issued on March 1, can be converted into 18,000 ordinary shares (dividends paid on June) – P 3,600,000 12% Bonds Payable, issued on May 1, can be converted into 30,000 ordinary shares– P 3,000,000 Income Tax Rate – 30% How much is the incremental EPS of convertible bonds payable? (round-off to nearest centavo)