College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 21, Problem 2CE
To determine
Journalize the closing process of Income Summary and Cash Dividend accounts to Retained Earnings account for Company D.
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Gregg Corp. reported revenue of $1,450,000 in its cash basis income
statement for the year ended Dec. 31, Year 7. Additional information was
as follows:
Accounts receivable, Jan 1, Year 7 $400,000
Accounts receivable, Dec 31, Year 7 $530,000
Under the accrual basis, Gregg would report revenue of
O $1,580,000
O $1,035,000
$1,335,000
O $1,505,000
The following transactions took place for Solar Company.
Nov. 12 Declared total cash dividend of $45,000 for stockholders of record November 20
payable on December 1.
Required
Record the journal entries on the above dates
Briefly describe the significance of November 20
Simon Company's year-end balance sheets follow.
At December 31
Assets
Cash
Accounts receivable, net
Merchandise inventory
Prepaid expenses
Plant assets, net
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Common stock, $10 par value
Retained earnings.
Total liabilities and equity
Current Year
Interest expense
Income tax expense
Total costs and expenses
Net income
Earnings per share
$ 25,693
75,195
91,790
7,868
226,383
$426,929
$ 106,305
81,065
162,500
77,059
For both the current year and one year ago, compute the following ratios:
$ 338,555
172,052
The company's income statements for the current year and 1 year ago, follow.
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
9,435
7,215
Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3
Current Year
1 Year Ago
$ 40,894
$ 60,955
86,343
66,412
163,500
163,500
57,244
38,994
$426,929 $ 368,042 $ 309,800
$ 30,032
51,526
68,088
7,729
210,667
$ 368,042
$ 555,008
527,257
$…
Chapter 21 Solutions
College Accounting, Chapters 1-27
Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TFCh. 21 - Prob. 3TFCh. 21 - Prob. 4TFCh. 21 - Prob. 5TFCh. 21 - Prob. 1MCCh. 21 - Prob. 2MCCh. 21 - Prob. 3MCCh. 21 - Prob. 4MCCh. 21 - Prob. 5MC
Ch. 21 - Prob. 1CECh. 21 - Prob. 2CECh. 21 - Teway Company declared and paid dividends in the...Ch. 21 - Prob. 4CECh. 21 - Prob. 5CECh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - CORPORATE INCOME TAX Stanton Company estimates...Ch. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - Prob. 3SEACh. 21 - STOCK DIVIDENDS Kaufman Company currently has...Ch. 21 - STOCK SPLIT Goldstein Company has 100,000 shares...Ch. 21 - Prob. 6SEACh. 21 - STATEMENT OF RETAINED EARNINGS McGregor Company...Ch. 21 - Prob. 8SPACh. 21 - Prob. 9SPACh. 21 - Prob. 10SPACh. 21 - Prob. 11SPACh. 21 - Prob. 1SEBCh. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - COMMON AND PREFERRED CASH DIVIDENDS Ramirez...Ch. 21 - STOCK DIVIDENDS Martinez Company currently has...Ch. 21 - Prob. 5SEBCh. 21 - Prob. 6SEBCh. 21 - Prob. 7SEBCh. 21 - Prob. 8SPBCh. 21 - CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT...Ch. 21 - Prob. 10SPBCh. 21 - Prob. 11SPBCh. 21 - Prob. 1MYWCh. 21 - Prob. 1ECCh. 21 - MASTRY PROBLEM On January 1, 20--, Dover Companys...Ch. 21 - CHALLENGE PROBLEM This problem challenges you to...
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- Seismic Inc. reported the following results for the year ended June 30, 20Y5: Retained earnings, July 1, 20Y4 $1,700,000 Net income 311,000 Cash dividends declared 44,000 Stock dividends declared 22,000 Required: Prepare a retained earnings statement for the fiscal year ended June 30, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. A decrease to retained earnings should be entered as a negative amount.arrow_forwardPrepare a statement of retained earnings for Tidal Company for the current year ended December 31 using the following data. (Amounts to be deducted should be indicated by a minus sign.) Cash dividends declared and paid in current year Retained earnings at December 31, prior year Net income in current year Tidal Company Statement of Retained Earnings For Current Year Ended December 31 $ 8,800 61,600 34,600arrow_forwardOn November 12, XYZ Corporation declared a total cash dividend of $45,000 for stockholders of record on November 20 and payable on December 1. (a) Journalize the entries required on November 12, November 20, and December 1. (b) Briefly describe the significance of November 20.arrow_forward
- Brass Corporation declared and paid $4,700 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses Interest expense. Income before income taxes. Income tax expense Net income Balance Sheet Cash Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities Notes payable (long-term) Common stock (par $5) Additional paid-in capital Retained earnings. Total liabilities and stockholders' equity Required: Current $ 265,000 144,000 121,000 70,300 4,400 46,300 13,890 $ 32,410 Required 1 $ 8,210 36,000 57,000 62,000 $ 163,210 Required 2 Required 3 1-a. Current Year 1-a. Previous Year 1-b. Current year gross profit percentage is: Previous 1. Compute the gross profit percentage for the current and previous years. Are the current-year results better, or worse, than those for the previous year? $ 233,000…arrow_forwardDenna Company's working capltal accounts at the beginning of the year follow Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one year Accrued liabilities $ 85,eee $ 25,600 S 386,000 $ 499, 000 S 18, See $ 227,000 $ 130,eee $ 73,500 During the year, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $45,000. a. Issued additional shares of common stock for cash. $230,000. b Sold inventory costing $82.000 for $115,000, on account c. Wrote off uncollectible accounts in the amount of $16,000, reducing the accounts recelvabie balance accordingly d. Declared a cash dividend, $45.000. e Paid accounts payable, $124,000. f Borrowed cash on a short-term note with the bank, $82,500 g. Sold inventory costing $19,500 for $13,000 cash. h. Purchased Inventory on account. $61.250. 1. Pald off all short-term notes due, $212,500. J. Purchased equipment for cash, $87,000. k. Sold marketable…arrow_forwardMidyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.278 million Total Common Stock of $3.810 million Cash of $6.030 million Retained Earnings of $28.058 million. What were the Digby Corporation's total assets?arrow_forward
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Earnings per share (EPS), basic and diluted; Author: Bionic Turtle;https://www.youtube.com/watch?v=i2IJTpvZmH4;License: Standard Youtube License