Question

In: Accounting

Naxion Corporation began operations on January 2, 2018, and had the following transactions during the year:...

Naxion Corporation began operations on January 2, 2018, and had the following transactions during the year:
Jan. 2 Issued 250,000 shares of $1 par value common stock at $45 per share. Total shares authorized: 1,000,000.
Feb. 5 Issued 10,000 shares of $50 par, 5% cumulative preferred stock at $65 per share. Total shares authorized: 25,000.
Mar. 15 Issued 150,000 shares of $1 par value common stock at $35 per share.
Apr. 2 Declared a $2.50 per share cash dividend on its preferred stock to be paid on April 25. Date of record is April 10.
Apr. 3 Declared a $0.10 per share cash dividend on its common stock to be paid on April 26. Date of record is April 10.
Apr. 25 Payment of cash dividend on preferred stock.
Apr. 26 Payment of cash dividend on common stock.
Jun. 1 Declared a 2% stock dividend on all common stock outstanding. Current market price of the stock was $48 per share. Date of record is June 15.
Jun. 30 Distributed common stock dividend to shareholders.
Oct. 10 Purchased 2,500 shares of treasury stock-common at $52 per share.
Nov. 15 Sold 2,000 shares of treasury stock-common at $54 per share.
Requirements:
1 Journalize Naxion’s transactions for 2018.
2 Prepare the stockholders' equity section of the balance sheet as of December 31, 2018, including the heading. Assume Naxion had net income of $15,000,000 during 2018.
3 Determine Naxion’s earnings per share for 2018, rounded to two decimal places. For the average number of common shares outstanding, average the number of shares outstanding on January 2 and December 31.
4 Assuming Naxion’s market value per common share as of December 31, 2018 was $55, calculate Naxion’s price/earnings ratio for 2018, rounded to two decimal places.

Solutions

Expert Solution


Related Solutions

Jester Company began operations on January 1, 2018. The company had the following transactions in its...
Jester Company began operations on January 1, 2018. The company had the following transactions in its first year of business: • January 4: Owners invested $120,000 (the par value of the stock) in exchange for 20,000 shares of common stock. • February 2: Jester took out a 10-year note payable in the amount of $80,000 to pay for operating expenses. • Interest payments are due every six months, and the balance of the note will be paid off in a...
Jester Company began operations on January 1, 2018. The company had the following transactions in its...
Jester Company began operations on January 1, 2018. The company had the following transactions in its first year of business: January 4: Owners invested $120,000 (the par value of the stock) in exchange for 20,000 shares of common stock. February 2: Jester took out a 10-year note payable in the amount of $80,000 to pay for operating expenses. Interest payments are due every six months, and the balance of the note will be paid off in a lump-sum in 10...
Walter's Inc. began operations on January 15, 2018, and had the following transactions in trading securities...
Walter's Inc. began operations on January 15, 2018, and had the following transactions in trading securities during 2018 and 2019: March 1, 2018 Purchased 500 shares of Apex, Inc. common stock at $11 per share, plus a commission of $300 April 1, 2018 Purchased 1,000 shares of Basic Corp. preferred stock at $4 per share, plus a commission of $500. June 1, 2018 Received dividends of $1 per share on the Apex stock and $2 per share on the Basic...
Clothing Frontiers began operations on January 1 and engages in the following transactions during the year...
Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders’ equity. January 1 Issues 700 shares of common stock for $44 per share. April 1 Issues 110 additional shares of common stock for $48 per share. Required: 1. Record the transactions, assuming Clothing Frontiers has no-par common stock. 2. Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 stated value common stock.
Tony Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred...
Tony Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations. 2018 Jan. 1 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative, preferred stock. Jan. 2 Issued 200,000 shares of common stock for $12 cash per share. Jan. 3 Issued 100,000 shares of common stock in exchange for a building valued at...
Question #2 During its first year of operations, Roldan Corporation had the following transactions pertaining to...
Question #2 During its first year of operations, Roldan Corporation had the following transactions pertaining to its common stock. Jan. 10            Issued 60,000 shares for cash at $5 per share. July 1                Issued 50,000 shares for cash at $8 per share. Instructions: (a) Journalize the transactions, assuming that the common stock has a par value of $5 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share. (c)...
CP 7–4 Koss Co. Ltd. began operations on January 1, 2018. It had the following transactions...
CP 7–4 Koss Co. Ltd. began operations on January 1, 2018. It had the following transactions during 2018, 2020, and 2021. 2018 Dec. 31 Estimated uncollectible accounts as $5,000 (calculated as 2% of sales) 2020 Apr. 15 Wrote off the balance of N. Lang, $700 Aug. 8 Wrote off $3,000 of miscellaneous customer accounts as uncollectible Dec. 31 Estimated uncollectible accounts as $4,000 (1½% of sales) 2021 Mar. 6 Recovered $200 from N. Lang, whose account was written off in...
During January 2018, the first month of operations, a consulting firm had following transactions: Issued common...
During January 2018, the first month of operations, a consulting firm had following transactions: Issued common stock to owners in exchange for $22,000 cash. Purchased $5,500 of equipment, paying $1,650 cash and signing a promissory note for $3,850. Received $9,900 in cash for consulting services performed in January. Purchased $1,650 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $17,600. Paid $825 on account. Paid $3,300 to employees...
6. Scotti Company had the following transactions during the year 2018: *On January 1, 2018, its...
6. Scotti Company had the following transactions during the year 2018: *On January 1, 2018, its first year of business, Scotti Company issued 800,000 shares of $5 par value Common Stock for $18 per share. *On July 5, 2018, Scotti repurchased 200,000 shares at $20 per share. *On August 4, 2018, Scotti reissued 50,000 of its Treasury shares at $25 per share. *On September 15, 2018, Scotti reissued 50,000 of its Treasury shares at $23 per share. *On December 29,...
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its...
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock. Jan. 10   Issued 80,000 shares for cash at $6 per share. Mar. 1   Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July 1   Issued 30,000 shares for cash at $8 per share. Sept. 1   Issued 60,000 shares for cash at $10 per share. (a)  ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT