Question
In: Accounting
The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2;...
The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2; Auth 500,000 and issued/outstanding 100,000 @ an average issue price of $4.75. Accumulted other comprehensive income is $180,000. The balance in shareholders' equity is retained earnings.
During 2021: Sales revenue $880,000, interest revenue $30,000 ; rent revenue $160,000; Dividend Revenue $80,000; sales Returns & Allowances $25,000; Sales discounts $70,000; COGS $350,000; Selling exp $100,000; General Administrative expenses $80,000; Interest expense $70,000; Loss on sale of Investments $60,000; Restructuring Costs $75,000; Gain on sale of compenant that qualifies as a discontinued ops $150,000; Write down of inventory $50,000; foreign currency translation gain $20,000; unrealized gain in value of land $50,000; .Unrealized gain in the value of patents $50,000; unrealized loss in value of available for sale securities $60,000 ;
Additional information: Tax rate is 20% The company issues 50,000 shares on 10/1/21 for $250,000. The company issues 20,000 shares on 7/1/21 for equipment that has a fair value of $100,000 The company declared dividends of $100,000 of which $25,000 will be paid on 1/31/22.
2.) Prepare a statement of shareholders' equity.
Solutions
Expert Solution
| Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
| The company's | ||||
| Statement of shareholders' equity | Common Stock | Retained Earnings | Accumulated other comprehensive income | Total |
| Opening Balance | 475,000.00 | 1,115,000.00 | 180,000.00 | 1,770,000.00 |
| Add: Shares issued in cash | 250,000.00 | - | - | 250,000.00 |
| Add: Shares issued against property | 10,000.00 | - | - | 10,000.00 |
| Add: Net Income for the year | - | 420,000.00 | - | 420,000.00 |
| Less: Dividends | - | (100,000.00) | - | (100,000.00) |
| Less: Other comprehensive loss for the year | - | - | (140,000.00) | (140,000.00) |
| Closing Balance | 735,000.00 | 1,435,000.00 | 40,000.00 | 2,210,000.00 |
| Multiple step income statement | Amount $ | Amount $ |
| Sales | 880,000.00 | |
| Less: Sales Returns & Allowances | (25,000.00) | |
| Less: Sales Discounts | (70,000.00) | |
| Net Sales Revenue | 785,000.00 | |
| Less: Cost of Goods Sold | 350,000.00 | |
| Gross profit | 435,000.00 | |
| Less: Operating expenses | ||
| Selling expense | 100,000.00 | |
| Administrative expense | 80,000.00 | |
| Total Operating expenses | 180,000.00 | |
| Operating income | 255,000.00 | |
| Other income (expenses) | ||
| Interest revenue | 30,000.00 | |
| Rent revenue | 160,000.00 | |
| Dividend revenue | 80,000.00 | |
| Loss on sale of investments | (60,000.00) | |
| Foreign currency translation gain | 20,000.00 | |
| Restructuring Costs | (75,000.00) | |
| Write down of inventory | (50,000.00) | |
| Interest expense | (70,000.00) | 35,000.00 |
| Income from continuing operations | 290,000.00 | |
| Add: Gain on sale of component that qualifies as a discontinued ops | 150,000.00 | |
| Net income | 440,000.00 | |
| Other comprehensive income | ||
| Unrealized gain in value of land | 50,000.00 | |
| Unrealized gain in value of patents | 50,000.00 | |
| Unrealized loss in value of available for sale securities | (60,000.00) | |
| Total comprehensive income (loss) | 40,000.00 | |
| Comprehensive Net Income | 480,000.00 |
ekkarill92 answered 1 year agoRelated Solutions
Multiple step income statement The company's total shareholders' equity as of 12/31/2020 is $1,777,000Common stock; par...
Multiple step income statement
The company's total shareholders' equity as of 12/31/2020 is
$1,777,000Common stock; par value of $2; Auth 500,000 and
issued/outstanding 100,000 @ an average issue price of $4.75.
Accumulted other comprehensive income is $180,000. The balance in
shareholders' equity is retained earnings.
During 2021: Sales revenue $880,000, interest revenue $30,000 ;
rent revenue $160,000; Dividend Revenue $80,000; sales Returns
& Allowances $25,000; Sales discounts $70,000; COGS $350,000;
Selling exp $100,000; General Administrative expenses $80,000;
Interest expense $70,000;...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 7 million shares at $1 par
$
7,000,000
Paid-in capital—excess of par
63,000,000
Retained earnings
95,500,000
Required:
1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February 15, 2021
Reacquired...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 5 million shares at $1 par $ 5,000,000
Paid-in capital—excess of par 30,000,000
Retained earnings 98,500,000
Required: 1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February 15, 2021 Reacquired...
Context Corporation reported shareholders’ equity on December 31, 2013: Common stock - $10 par value; 50,000...
Context Corporation reported shareholders’ equity on
December 31, 2013:
Common stock - $10 par value; 50,000 shares authorized
20,000 shares issued and outstanding.......................
$200,000
Paid-in capital in excess of par value, common stock.......
$30,000
Retained
earnings...........................................$135,000
Transactions occured during the course of 2014.
December 31, 2014: Context Corporation's
statement of equity.
Statement of equity
20000 shares issued and
outstanding
200000
Paid in capital in exxess of
par
30000
Retained earnings
253250
Total
483250
Less
Treasury stock (1250*20)
25000
Total equity...
The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par
The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par Paid-in capital—excess of par on common stock 7% cumulative convertible preferred stock, $100 par value Paid-in capital—excess of par on preferred stock Retained earnings Additional Information: • Proactive had 7 million shares of preferred stock authorized of which 2 million were outstanding. All 2 million shares outstanding were issued in 2015 for $112 a share. The preferred stock is convertible into common...
The following is the Stockholders Equity section of Walmart at December 31, 2020: 12/31/2020 12/31/2021 Common...
The following is the Stockholders Equity section of Walmart
at December 31, 2020:
12/31/2020
12/31/2021
Common
stock, $10 par value, (700,000 shares issued and outstanding)
$7,000,000
Additional
paid-in-capital CS
$4,000,000
Retained Earnings
$5,600,000
The
following transactions occurred during 2021:
100,000
shares of common stock were purchased for the treasury at $24 per
share
Preferred
stock was issued for land. The asking price of the land was
$3,500,000.
The value
of the land was $3,400,000.
40,000
shares of treasury stock were...
The shareholders’ equity of Beau Corporation includes $2,000,000 of $1 par common stock and $4,000,000 par...
The shareholders’ equity of Beau Corporation includes $2,000,000
of $1 par common stock and $4,000,000 par value of 6% cumulative
preferred stock. The board of directors of Beau declared cash
dividends of $500,000 in 2019 after paying $200,000 cash dividends
in each of 2018 and 2017. What is the amount of dividends common
shareholders will receive in 2019?
a. $180,000.
b. $260,000.
c. $280,000.
d. $320,000.
The shareholders’ equity of Tru Corporation includes $620,000 of $1 par common stock and $1,220,000 par...
The shareholders’ equity of Tru Corporation includes $620,000 of
$1 par common stock and $1,220,000 par of 7% cumulative preferred
stock. The board of directors of Tru declared cash dividends of
$152,000 in 2018 after paying $62,000 cash dividends in each of
2017 and 2016.
Required:
What is the amount of dividends common shareholders will receive in
2018?
The shareholders’ equity of MLS Enterprises includes $100 million of no par common stock and $200...
The shareholders’ equity of MLS Enterprises includes $100
million of no par common stock and $200 million of 6% cumulative
preferred stock. The board of directors of MLS declared cash
dividends of $31 million in 2018 after paying $7 million cash
dividends in both 2017 and 2016.
What is the amount of dividends common shareholders will receive in
2018?
Par Value Preferred Stock
Dividend Rate (%)
Annual Preferred Dividend
Annual Preferred Dividend:
Total Cash Dividend Paid
Paid to Preferred
Paid...
Total stockholders' equity 12/31/14 1,288,000 Common stock PV $2, authorized 400,000; issued 180,000 at an average...
Total stockholders' equity 12/31/14 1,288,000 Common stock PV
$2, authorized 400,000; issued 180,000 at an average issue price of
4.75 Balance is retained earnings. During 2015 Company issued 5,000
shares for 40,000 Company has net income of 77.000 and declared
dividends of 40,000 Prepare the stockholders' equity section of the
balance sheet as it would be presented in a classified balance
sheet.
PP&E
12/31/14
Buildings, net
180,000
Land held for speculation
100,000
Land
120,000
Equipment, net
210,000
Accumulated depreciation buildings...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain whether acid can catalyze each of the following reactions; i.e., whether the reaction is faster...
- Questions: How does Andrew Carnegie justify the contrast between the wealthy and the working poor? Provide...
- As you go through your daily activities, look for examples of people engaged in conflict. You...
- Summarize key functions of managements in your own words (Planning, Organizing, Leading and Controlling) Please don't...
- For college physics. Please write in paragraph form, typed. Thanks! Respond to the following: In your...
- What is the difference between a bitmap image and a vector image? In terms of processing...
- Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition...
ADVERTISEMENT