Bernabe Company reported the following equity accounts in January 1, 2020: Share Capital, P20 par 8,000,000 Share premium 2,550,000 Retained earnings 1,275,000 All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December 31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately after the shares were retired, what is the balance of share premium
Q: What is the correct answer?
A: The treasury stock are the own shares of the company that are repurchased from the shareholders of…
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…
A: Retained Earnings: When a company's direct and indirect expenses, income taxes, and dividends to…
Q: SKIPPY Company reported the following amounts in the equity section of its December 31, 2019…
A: The retained earnings are the earnings of the business that are retained for the future purpose of…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: Retained earnings are the accumulated free reserves of the entity. Dividends paid are made from the…
Q: Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20…
A: Share Premium: When shares are issued more than PAR value called Issued at premium. Share premium =…
Q: Stan statement of financial position shows total shareholders' equity of P3,150,000 as of December…
A: Solution: Outstanding shares = Issued shares - shares in treasury = 52000 - 2000 = 50000 shares
Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…
A: You have posted more than one unrelated questions, so as per our policy only first question is…
Q: What is the balance of the share premium account immediately after the retirement of the shares?
A: Given information is: The equity accounts of UBAS Co. on December 31, 2019 were as follows:…
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A: Stockholder's equity is the amount belongs to the stockholder's of the business. It is the sum of…
Q: XYZ Co. had 600,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no…
A: Earnings per share: When the net income is divided by the number of outstanding shares, we get…
Q: The equity section of the Georgie Inc. showed the following data on December 31, 2019: Share…
A: Journal entries: These are the entries prepared to record the business transactions in the books of…
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…
A: No. of shares issued under bonus issue = No. of shares outstanding x bonus rate Amount charged to…
Q: Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference…
A: Contributed capital: It is the total value of shares issued during a period. The shares issued…
Q: retained earnings?
A: Definition: Retained Earnings: It is the amount that is obtained after distribution of dividend to…
Q: oOn January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A log book is used to record a business transaction in an organization's accounting records. A…
Q: Sarasota Corporation had 109.200 shares of stock outstanding on January 1, 2020. On May 1, 2020,…
A: Answer:- Weighted-average number of shares outstanding meaning:- The weighted average number of…
Q: On January 1, 2021, MARVEL Corporation's shareholders' equity comprised of P5,000,000 share capital,…
A: No. of shares = Share capital / Par value per share = 5,000,000/100 = 50,000 shares
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following:…
A:
Q: Mack Company reported the following outstanding share capital on December 31, 2020: - 30,000…
A: The cumulative dividend is payable even if it is in arrears.
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Balance in retained earnings on December 31, 2020 = 2019 loss + 2020 loss + 2021 profit = -P520,000…
Q: What should be reported as total shareholders’ equity on December 31, 2020?
A: Total Shareholders' equity computation includes: a) Outstanding shares b) additional paid up…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Good life company shows the following of December 2018 : Ordinary shares of 900000 shares @ P10 per…
Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…
A: 1) The total amount of dividends on preference and ordinary shares. 2) The Total shareholders’…
Q: ABC Company reported the following in its statement of shareholders' equity on January 1, 2019:…
A: Treasury stock represents the shares of a company that have been bought back (but not yet cancelled)…
Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…
A:
Q: On December 31, 2021, EOS Co's shareholders' equity consisted of the following: 8%, cumulative…
A: Book Value Per Share (BVPS) refers to the per-share value of equity on an accrual accounting basis…
Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…
A: The retained earnings are the balance of the net income retained for future requirement such as…
Q: ABC Company had 80,000 ordinary shares outstanding in January 2020. The company distributed a 15%…
A: Shares reacquired by the company are entitled to a share split. So the 10,000 shares that are…
Q: The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its…
A: Treasury shares are the shares of the own company that are repurchased from the market for resale or…
Q: The shareholders' equity section of Raja Corporation's statement of financial position as of…
A: Retained earnings is the accumulated profit of the firm which is used to expand the business or…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Treasury Stock: These are the shares that are purchased back by the company from the open market.…
Q: The shareholders' equity of the ABA Company on January 1, 2020 is presented below: Share capital,…
A: It shows the sum of the amount invested by shareholders and retained earnings. It is divided into…
Q: Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par,…
A: Share premium: Shares issued more than PAR value called Share premium. Share premium = Issued Price…
Q: The shareholders' equity section of Good Life Company shows the following on December 31, 2018:…
A: Number of shares on June 30=Initial issue-Reacquisition+Resell=900,000-75,000+45,000=870,000 shares
Q: Using the information provided below, what is the share premium balance on December 31, 2021? The…
A: Share premium is the difference between the total amount of money received for the shares issued and…
Q: CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited…
A: The date of declaration is relevant among all Dates for making declaration of dividend and…
Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…
A:
Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…
A: Solution: Total share premium on Dec 31, 2020 = Share premium - Preference + Share premium -…
Q: The balance sheet for Umi Sustainable Seafood Inc. reported the following components of equity on…
A: Common Stock Retained Earnings Total Equity Balance as on December 31, 2019 $…
Q: he accounts from the shareholders' equity section of the balance sheet of Western Company showed the…
A: Given Information: Ordinary shares P475,000 Share premium P6,650,000 Retained earnings…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price per share.
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The stockholders/ equity section of Glavine Company revealed the following information on December…
A: solution concept legal capital means that capital which remains for longer term with the company or…
Q: On January 1, 2020, Arnold Inc. has the following account balances: · Share capital, P10…
A: Treasury shares are those shares which are repurchased or reacquired by the business from its…
Q: On January 1, 2020, Marimar Company reported the following shareholder's equity: Share capital,…
A: The Shareholder's equity shows the amount of contribution by the owners to the capital of the…
Q: ABC began operations in January 2019 and reported the following results for each of its three years…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Bernabe Company reported the following equity accounts in January 1, 2020:
Share Capital, P20 par 8,000,000
Share premium 2,550,000
All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December
31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately
after the shares were retired, what is the balance of share premium
Step by step
Solved in 2 steps with 1 images
- 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.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- 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.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. 6.73Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?
- 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.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.Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
- Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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.