In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 170 million shares of its $1 par common stock at $34 per share.Required:Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:1. On January 2, 2021, Borland reacquired 10 million shares at $32.50 per share.2. On March 3, 2021, Borland reacquired 10 million shares at $36 per share.3. On August 13, 2021, Borland sold 1 million shares at $42 per share.4. On December 15, 2021, Borland sold 2 million shares at $36 per share.
Q: Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value…
A: A financial statement is one that is prepared by the company in a structured format that contains…
Q: In 2018, Broyles, Inc. reacquired 3,000 shares of its common stock at $55 per share. In 2019,…
A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…
Q: At December 31, 2020, Coronado Industries had 1140000 shares of common stock outstanding. In…
A: We know that the diluted earnings per share is the net income generated by each outstanding share…
Q: In 2021, Daisy, Inc. reacquired 5,000 shares of its common stock as treasury shares at $15 per…
A: Treasury stock is that stock which is being reacquired or repurchased by the company from its…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 2-for-1 basis. In its…
A: No. of shares outstanding after split off = No. of shares outstanding before split off x split off…
Q: Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares…
A: Earnings per share refer to the amount that is earned by the stockholders on every share held by…
Q: In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had…
A:
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: Treasury stock represents the value of own shares that have been purchased by the entity.
Q: On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase…
A: The company is required to have maximum shares in the market for the growth of the business and long…
Q: In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had…
A:
Q: Ringmeup Inc. had net income of $186,400 for the year ended December 31, 2019. At the beginning of…
A: Basic Earnings per share of common stock is computed by dividing the Net income less preferred…
Q: In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had…
A: Debit all comes in and Credit all goes out Debit the receiver and Credit the giver Debit all…
Q: Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: ordinary shares and outstanding at December 31, 2021. On July 1, 2022, an additional 40,000 shares…
A: Diluted Shares can be referred as the total number of shares which the corporation has at the…
Q: During 2021, its first year of operations, McCollum Tool Works entered into the following…
A: Weighted average no. of outstanding common shares = 35,000,000 + 4,000,000*9/12…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Step 1: Shareholders’ equity section of the balance sheet represents the total amount of…
Q: Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000…
A: Organizations have the power to raise funds with different methods such as by issuing common stock,…
Q: In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had…
A: Treasury stocks are repurchased shares of the company. The firm has the power to retire these shares…
Q: Waterway Corporation was organized on January 2, 2020. During 2020, Waterway issued 39200 shares at…
A: Purchase of treasury stock will reduce the stockholders equity. The net income will be added to…
Q: At the beginning of 2019, Hardin Company had 300,000 shares of $10 par common stock outstanding.…
A:
Q: Kimber Inc. reported net income of $177,500 during 2021. At January 1, 2021 Kimber had 100,000…
A: EPS stands for earning per share. A company has two types of EPS i.e basic and diluted. Basic EPS is…
Q: The following is a summary of all relevant transactions of Vicario Corporation since it was…
A: Particulars Amount ($) Preferred Stock, $100 par value, 10000 authorized, 5000 issued and…
Q: Harbottle Corporation was organized on January 3, 2021, with an authorized capital of 100,000 shares…
A: Loss on reissue of treasury shares = no. of treasury shares reissued x (Purchase price - reissue…
Q: The beginning of 2019, hard and Company had 210,000 shares of $10 par common stock outstanding.…
A: Stock dividend is a type of dividend which is provided to the shareholders. In this type,…
Q: Jackson Inc. is authorized to issue an unlimited number of common shares and 15,000, $58 stated…
A: Issued shares are the authorized shares sold to and held by the shareholders of a company,…
Q: On January 1, 2019, the total shareholders’ equity of Marie Co. was P8,000,000. The entity also had…
A: Book value is calculated by the historical costs of stocks.
Q: Tamarisk, Inc. is authorized to issue 2,250,000 shares of $1 par value common stock. During 2020,…
A: Shares bought back by the company are called treasury stock. Treasury stock is deducted from the…
Q: On February 28, 2021, Dow sold 56,000 common shares. In keeping with its long-term share repurchase…
A: Earning per share is the portion of the total earnings of the company which is to be distributed to…
Q: On January 1, 2021, marine company had 125,000 issued shares and 25,000 treasury shares. During the…
A: No. of shares issued means shares issued by the company including the shares purchased by the…
Q: Ringmeup Inc. had net income of $151,000 for the year ended December 31, 2019. At the beginning of…
A: Calculation of Basic Earnings per share: Thus, Basic Earnings per share is $2.84
Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…
A: difference in repurchase price and issue price are transferred to additional paid in…
Q: At the beginning of 2019, TJH Corporation had retained earnings of P 3,000,000. Throughout the year,…
A: Solution: Retained earnings balance at Dec 31, 2019 = Beginning retained earnings + Net income -…
Q: SHOW THE JOURNAL ENTRY FOR EACH TRANSACTIONS Your inquiries and investigation revealed the…
A: * As per the bartleby guidelines in case of interlinked question, answer first 3 only Treasury…
Q: The Lily Company, a calendar year entity, reported net income of $300,000 for 2019. At the start of…
A: Basic EPS = Net IncomeWeighted average shares outstanding Diluted EPS = Net Income- Preference…
Q: January 1—Issued 200 shares to an investor for $8 per share. January 2—Issued a ten-year, 4%, $1,000…
A:
Q: The balance sheet of Chunn Industries included the following shareholders’ equity section at…
A: Entry to record the purchase and retirement of 1 million shares for $9 million:
Q: Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During…
A: Treasury stock: When a company repurchases its common stock issued earlier from the stock holders,…
Q: At the beginning of 2019, Hardin Company had 200,000 shares of $10 par common stock outstanding.…
A: Solution: Introduction: Share of stock represents both Common and Preferred stock of capital which…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry is the reporting of the transactions in the books of accounts.
Q: On January 1, 2020, Orr Co. established a stock appreciation rights plan for its executives. They…
A: Journal entry is the process of recording business transactions in the books of accounts for the…
Q: On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per…
A: Share premium is the premium or additional paid in capital which has been received by the company in…
Q: Edward Corporation is authorized to issue 100,000 shares of $1 par value common stock. During 2021,…
A: Treasury stock is a form of reserved stock that is sometimes used to collect money or pay for…
Q: In 2021, Western Transport Company entered into the treasury stock transactions described below. In…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: As of December 31, 2020, the Russell Corporation has 10,000 shares of 10% preferred stock issued and…
A:
Q: On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On…
A: Under the treasury stock method, the common stock are held as treasury stock and they are not…
Q: Kedzie Corporation was organized on January 1, 2019, with an authorization of 5,000,000 shares of $2…
A: Formula: Common stock value = Shares issued x PAR value Multiplication of PAR value with Shares…
Q: n January 1, 2021, a company had 125,000 issued shares and 25,000 treasury shares. uring the year,…
A: The shares issued includes the treasury stock shares but shares outstanding are decreased with the…
Q: Sunland Corporation issued 104,000 shares of $19 par value, cumulative, 9% preferred stock on…
A: Annual preferred dividend = 104,000 shares x $19 x 9% = $177,840
In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 170 million shares of its $1 par common stock at $34 per share.
Required:
Assuming that Borland retires shares it reacquires, record the appropriate
1. On January 2, 2021, Borland reacquired 10 million shares at $32.50 per share.
2. On March 3, 2021, Borland reacquired 10 million shares at $36 per share.
3. On August 13, 2021, Borland sold 1 million shares at $42 per share.
4. On December 15, 2021, Borland sold 2 million shares at $36 per share.
Trending now
This is a popular solution!
Step by step
Solved in 2 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?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.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. 6.73
- 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.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.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.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?
- Cash 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?The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.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.