Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: a. b. value, Ordinary Share capital, USD20 par authorized 50,000 shares; issued and outstanding 30,000 shares C. d. Ordinary Share premium Retained earnings USD600,000 In addition, during the year, these transactions happened: USD150,000 USD230,000 2,500 shares were repurchased as treasury shares at a price of USD28 per share. 500 treasury shares were sold at a price of USD32 per share. 700 shares of treasury shares were sold at a price of USD24 per share. Sizzle Company reported a net income of USD120,000 for the current year. Please calculate the balance of the Retained Earnings - Unappropriated account of Sizzle Company after recoding all these transactions. Show complete solution and explanation.
Q: Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed…
A: After-tax salvage value The book value of an asset which is obtained after deducting all the…
Q: Annual Data Premiums earned Losses incurred Expenses/commissions Dividends paid to policyholders…
A: Combined ratio: It is a measure of profitability of insurance company. Working Note #1 Combined…
Q: Dorpac Corporation has a dividend yield of 1.6%. Its equity cost of capital is 8.1%, and its…
A: Dividend The profit received by the company will be divided into two parts, the part distributed to…
Q: When you read the question, at the end, they said, do we accept this project through this…
A: As per the given information: No. of units sold - 6,000 units per yearSales price - $1,000…
Q: 1. Gabrielle's student loan of $27,000 at 4.12% compounded quarterly was amortized over 5 years with…
A: Here, Particulars Values Loan Amount $27,000.00 No. of years 5.00 Interest rate 4.12%…
Q: Suppose you are considering buying a house with a market price of $225,000. You plan on making a…
A: Down payment The first payment made by the buyer of the asset is known as a down payment. It is…
Q: 23. Duc has a credit card with a $1000 credit limit. His outstanding balance is currently $800. What…
A: concept. Credit limit is the maximum amount of credit made available by the lender or financial…
Q: Eight years ago, Over-the-Top Trampolines issued a 15-year bond with a $1,000 par value and a 6…
A: Bond yield The return a bondholder receives from the money invested in a particular bond is called…
Q: Complete the table with the alphas below: (Round to one decimal place.) Expected Return Volatility…
A: According to CAPM approach, k = Rf + beta (Rm - Rf) Where , k = rate of return Rm = market return…
Q: A company has a £10 million portfolio with a beta of 0.8 to the stock market. The futures price for…
A: Given: Particulars Amount Portfolio £10 Million Beta 0.8 Future price 500 Multiples…
Q: Justin is saving for his retirement 21 years from now by setting up a savings plan. He has set up a…
A: We need to use future value of annuity formula to calculate money in the account on the date of…
Q: Crane Bottling Corporation is considering the purchase of a new bottling machine. The machine would…
A: Net Present Value = Present value of net annual cash flow - Initial investment
Q: 1(A).Why did Lenders/Banks start to securitize mortgages (creating Collateralized Mortgages or Debt…
A: CMOs stand for collateralized mortgage obligations. CDOs stand for collateralized debt obligations.…
Q: Discuss the risk–return relationship involved in the firm’s asset-investment decisions as that…
A: Risk and reward in investing are highly interrelated. More potential gains on investing typically…
Q: Mzwandile Nkosi borrowed working capital from FNB Bank. Calculate the compound interest on R100 000…
A: Compound interest is the interest earned on the investment in which the interest earned also earns…
Q: Maltese Falcon: The Black Bird. Imagine that the mythical solid gold falcon, initially intended as a…
A: Purchasing power parity (PPP) refers to the difference in the prices of the commodity in different…
Q: Tarrah, Inc. has a target capital structure of 40% debt and 60% common equity. If the firm's…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: Winnebagel Corp. currently sells 25,544 motor homes per year at $59,558 each, and 8,375 luxury motor…
A: Given Current units of motor homes are 25,544 Price per motor home is $59,558.
Q: You have accumulated savings of $50,000 and decided that you will invest in one of the following…
A: Here, To Find: Part A. Annual rate of return from Nationalism Commercial Bank bonds =? Part B.…
Q: evaluate the sources of financial data which can be used to inform business strategy.
A: Financial Data: Quantitative information used by firms to make financial decisions is called…
Q: You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest.…
A: Mortgages are important when you buy home because the mortgage makes home buying easy and convinent…
Q: Alexander Driverman, Director of ticket sales for Buslink, recently put out an RFQ for the supply of…
A: Given: 110 Machines to be purchased each year for the next 5 years New equipment required costing…
Q: Louis Winthorpe III was evaluating investment opportunities to determine what he should do with his…
A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: 5. Jenna received a 15 year loan of $375,000 to purchase a 5.10% compounded semi-annually. a. What…
A: Loans are paid by the fixed monthly payments and these payments carry the payment for interest and…
Q: Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the…
A: Future value is the value of a certain sum of money accumulated with interest.
Q: 5. How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of…
A: Cash Flow Diagram: Cash flow diagrams depict inflows and outflows over a given time period. The…
Q: Culver Company is considering investing in new equipment that will cost $1428000 with a 10 year…
A: Payback period The method used in capital budgeting to help investors understand the approximate…
Q: 7 Principles To Investing by Warren Buffett?
A: Warren Buffet has written a book on investing where he discussed 7 golden principles to investing.…
Q: wants to buy a new jacuzzi. The jacuzzi costs $1500 Teagan decides to finance the jacuzzi for 36…
A: Loans make easy to buy anything because you have to pay by monthly payment which are easy to pay and…
Q: A recent edition of The Wall Street Journal reported interest rates of 9.75 percent, 10.10 percent,…
A: The forward rate refers to the price on which all the parties agreed on who is involved in the…
Q: A company has a property insurance policy with an annual premium of $1130. And recent months the…
A: A range of alternatives to traditional business insurance has developed due to market fluctuations.…
Q: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 5.7% interest. a)…
A: A mortgage also alluded to as a mortgage loan, is an agreement between a customer and a mortgage…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The average daily balance is the estimation of the amount on which the interest has been calculated…
Q: Consider two call options on the same stock. One has a strike price of 98 and the other has a strike…
A: Solution:- Call option is an option to buy the underlying asset at strike price, if the price of…
Q: The First National Bank is offering a 4 year certificate of deposit (CD) at 4% interest compounded…
A: Compound Interest The interest received over the principal amount and the interest received from the…
Q: A put option in finance allows you to sell a share of stock at a given price in the future. There…
A: Put options are exercised when the market share price is less than the Put price, in which the loss…
Q: A company enters into a short futures contract to sell 8,000 units of a commodity for $0.50 per…
A: We have a short sale transaction with pre determined initial and maintenance margin. We have to find…
Q: (a) Determine the expected return of security X (b) To reduce the systematic risk of the portfolio,…
A:
Q: In Miller and Modigliani's perfect world, what is likely to happen after a company announces a…
A: Capital structure is the proportion of different financing methods used by the company to fund its…
Q: n March 1 the price of a commodity is $1,000 and the December futures price is $1,015. On November 1…
A: The futures are used for hedging and used for reducing the risk in the spot market because loss in…
Q: Identify two investment alternatives that can be combined in a portfolio. Assume a 5050 investment…
A:
Q: A stock has a market beta of 0.86 and a standard deviation of 0.28. If the market standard deviation…
A: Given beta of stock is 0.86 Market SD is 0.30
Q: Calculate the WACC of a given company according to the following information. Common Stock: 200,000…
A: Weighted average cost of capital is weighted cost of debt, weighted cost of eqiuty and weighted cost…
Q: What is the present value of a $25,000 lump sum that you will receive three years from now and that…
A: Lumpsum amount to be received, FV is $25,000 The interest rate is 4% Compounded semi-annually The…
Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…
A: Here, Particulars Values Time period (NPER) 12.00 Principal (PV) $ 17,300.00 Rate (RATE)…
Q: Acme Co is considering an acquisition of Pinder Co at the end of the current year. Acme expects to…
A: Commercial transactions termed mergers and acquisitions occur when the ownership of one company or…
Q: By investing in a new truck, a shipping company can reduce its costs by $8,000 in the t first year…
A: The value of truck that is being used in the tranportation decreases with time and cash flow must be…
Q: Harlan made equal payments at the end of each month into his RRSP. if interest in his account is…
A: The contribution to RRSP are made monthly and these monthly payments grow over the period of time to…
Q: estion 2 MusicTogether.com will pay out its first dividend, $2.00, one year from today. Analysts…
A: Value of stock can be found out the present value of dividends and also the present value of the…
Q: 2. Sarah purchased a machine for $28,000 for her company. She paid 5.00% of this amount as a down…
A: Given: Particulars Amount Cost of machine $28,000 Down payment rate 5% Interest rate 4.42%…
Step by step
Solved in 4 steps
- 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?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.
- 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.Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?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.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, 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 375. The bonds are classified as a held- to-maturitv 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 545, including commission. p. 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, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). 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 had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [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 income statement for the year ended December 31, 2016, 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, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 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 5,254,000 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 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 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 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). 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, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary Share capital, USD20 authorized 50,000 shares; issued and outstanding 30,000 shares par value, USD600,000 Ordinary Share premium USD150,000 Retained earnings USD230,000 In addition, during the year, these transactions happened: а. 2,500 shares were repurchased as treasury shares at a price of USD28 per share. b. share. 500 treasury shares were sold at a price of USD32 700 shares of treasury shares were sold at a price of USD24 per share. per с. d. Sizzle Company reported a net income of USD120,000 for the current year. Please calculate the balance of the Share Premium – Treasury Shares account of Sizzle Company after recoding all these transactions. Show complete solution and explanation.nts CFAS Company showed the following information from its shareholders' equity at year-end before the effect of the transaction below: Ordinary share capital P6,250,000 Share premium 3,125,000 Retained earnings 3,724,000 Treasury shares (at cost) 1,530,000 The ordinary shares were originally issued for P187.50 per share. At the end of the year, CFAS Company retired 5,100 shares held in treasury. The treasury shares had a P125 par value per share and an average cost per share of P300. (Input your answers as figures, do NOT put any comma, peso sign or extra spaces. E.g. if your answer is one thousand, please input 1000): 1. How much is the adjusted ordinary share capital at year end? 2. How much is the adjusted share premium at year end? 3. How much is the adjusted balance of retained earnings at year end?
- Kremlin Company reported the following shareholders' equity at year-end: Share capital, P30 par value, P3,000,000; Share premium, P600,000; Retained earnings, P4,200,000. A 20% share dividend was declared and distributed at year-end when entity's share was selling at P65. What amount should be reported as share capital outstanding?Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary Share capital, USD20 authorized 50,000 shares; issued and outstanding 30,000 shares par value, USD600,000 Ordinary Share premium Retained earnings USD150,000 USD230,000 In addition, during the year, these transactions happened: 2,500 shares were repurchased as treasury shares at a price of USD28 500 treasury shares were sold at a price of USD32 а. per share. b. per share. 700 shares of treasury shares were sold at a price of USD24 per share. Sizzle Company reported a net income of USD120,000 for the current year. с. d. Please calculate the a) balance of the treasury shares account and the b) balance of Share Premium – Treasury Shares account of Sizzle Company after recording all these transactions. Show complete solution and explanation.Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: Ordinary Share capital, USD20 par value, authorized 50,000 shares; issued and outstanding 30,000 shares USD600,000 Ordinary Share premium Retained earnings USD150,000 USD230,000 In addition, during the year, these transactions happened: share. 2,500 shares were repurchased as treasury shares at a price of USD28 500 treasury shares were sold at a price of USD32 per share. 700 shares of treasury shares were sold at a price of USD24 per share. а. per b. с. d. Sizzle Company reported a net income of USD120,000 for the current year. Please calculate how many shares of ordinary share capital are outstanding of Sizzle Company after recoding all these transactions. Show complete solution and explanation.