On December 31, 2025, Carla Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2026. On January 21, 2026, the company issued 50,000 shares of its common stock for $51 per share, receiving $2,550,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2026, the proceeds from the stock sale, supplemented by an additional $450,000 cash, are used to liquidate the $3,000,000 debt. The December 31, 2025, balance sheet is issued on February 23, 2026. Show how the $3,000,000 of short-term debt should be presented on the December 31, 2025, balance sheet. (Enter account name only and do not provide descriptive information.)

On December 31, 2025, Carla Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2026. On January 21, 2026, the company issued 50,000 shares of its common stock for $51 per share, receiving $2,550,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2026, the proceeds from the stock sale, supplemented by an additional $450,000 cash, are used to liquidate the $3,000,000 debt. The December 31, 2025, balance sheet is issued on February 23, 2026. Show how the $3,000,000 of short-term debt should be presented on the December 31, 2025, balance sheet. (Enter account name only and do not provide descriptive information.)

Name: On December 31, 2025, Carla Company had $3,000,000 of short-term debt
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Description: On December 31, 2025, Carla Company had $3,000,000 of short-term debt in the form of notes payable due February 2, 2026. OnJanuary 21, 2026, the company issued 50,000 shares of its common stock for $51 per share, receiving $2,550,000 proceeds afterb

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 24E

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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.
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.
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.
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