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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.
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| 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 2 years 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
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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.
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Context Corporation reported shareholders’ equity on
December 31, 2013:
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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
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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
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$7,000,000
Additional
paid-in-capital CS
$4,000,000
Retained Earnings
$5,600,000
The
following transactions occurred during 2021:
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Preferred
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The value
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shareholders will receive in 2019?
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b. $260,000.
c. $280,000.
d. $320,000.
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stock. The board of directors of Tru declared cash dividends of
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The shareholders' equity of Janeek Enterprises includes $253,600 of no par common stock and $532,300 of...
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stock. The board of directors declared cash dividends of $81,900 in
2016 after paying $23,500 cash dividends in 2015. What is the
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______________________
PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU
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
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Par Value Preferred Stock
Dividend Rate (%)
Annual Preferred Dividend
Annual Preferred Dividend:
Total Cash Dividend Paid
Paid to Preferred
Paid...
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