On January 1, 200B Earth Corporation showed the following balances:II.Share Capital, 100 par, 200,000Shares authorized, 80,000shares issuedShare PremiumRetained Earnings8,000,000500,0006,000,000The net income for two consecutive years as well as the other transactions affecting theretained earnings is summarized below:200B Dec. 31 The net income for the year was 3,000,000Dec. 31 A cash dividend of 15 per share was declared payable on January 31, 20OC, to allshareholders of records as of January 15, 200C.2000 Jan 31 Paid the cash dividends declared in 200BDec. 31 The net income for the year was 3,500,000Dec. 31 Declared a 10% stock dividend. The market price of the share capital on this date was125 per shareRequired:a. Journal entries to record the above transactions including the entry to close the Income andExpense Summary Account (Sb. Balance of the Retained Earnings account as of:b.1 December 31, 200Bb.2 December 31, 200C

Dividend is the part or share of profit which is being given to the shareholders. It can be in the…

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: 2008 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, 200C, to all shareholders of records as of January 15, 200C. 2000 Jan 31 Paid the cash dividends declared in 2008 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 ( b. Balance of the Retained Earnings account as of: ( b.1 December 31, 200B b.2 December 31, 200C

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: 2008 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, 200C, to all shareholders of records as of January 15, 200C. 2000 Jan 31 Paid the cash dividends declared in 2008 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 ( b. Balance of the Retained Earnings account as of: ( b.1 December 31, 200B b.2 December 31, 200C

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

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 7E: Basic Income Statement The following are selected account balances of Rule Corporation at the end of...

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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: CurrentYear PreviousYear Accounts payable $436,000 $210,000 Current maturities of serial bonds payable 390,000 390,000 Serial bonds payable, 10% 1,750,000 2,140,000 Common stock, $1 par value 60,000 80,000 Paid-in capital in excess of par 710,000 710,000 Retained earnings 2,450,000 1,950,000 The income before income tax expense was $706,200 and $617,900 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Previous year fill in the blank 4 c. The ratio of liabilities to stockholders' equity has and the number of…
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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous YearAccounts payable $ 924,000 $ 800,000Current maturities of serial bonds payable 200,000 200,000Serial bonds payable, 10% 1,000,000 1,200,000Common stock, $10 par value 250,000 250,000Paid-in capital in excess of par 1,250,000 1,250,000Retained earnings 860,000 500,000The income before income tax was $480,000 and $420,000 for the current and previous years, respectively.a. Determine the ratio of liabilities to stockholders’ equity at the end of each year. Round to one decimal place.b. Determine the times interest earned ratio for both years.…
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The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $576,000 $280,000 Current maturities of serial bonds payable 510,000 510,000 Serial bonds payable, 10% 2,290,000 2,800,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 930,000 930,000 Retained earnings 3,210,000 2,550,000 The income before income tax was $1,064,000 and $931,000 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Previous year fill in the blank 4 c. The ratio of liabilities to stockholders' equity has   and the times interest…
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