Question
In: Accounting
On December 31, 2020, Crane Corporation had the following shareholders’ equity accounts: CRANE CORPORATION Balance Sheet...
On December 31, 2020, Crane Corporation had the following shareholders’ equity accounts:
CRANE CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number of shares
authorized, 92,000 issued) $1,033,000
Retained earnings 520,000
Total shareholders’ equity
$1,553,000
During the year, the following transactions occurred:
Jan. 15 Declared a $1 per share cash dividend to
shareholders of record on January 31, payable February 15.
July 1 Announced a 2-for-1 stock split. The market price per share
on the date of the announcement was $18.
Dec. 15 Declared a 10% stock dividend to shareholders of record on
December 30, distributable on January 15. On December 15, the
market price of each share was $9; on December 30, $12; and on
January 15, $11.
31 Determined that profit before income tax for the year was
$456,000. The company has a 30% income tax rate.
part
(a)
Journalize the transactions and closing entries for 2021
Solutions
Expert Solution
Journal entries:
| Date | Account title and explanation | Debit | Credit |
| Jan.15 | Dividends [92,000 shares x $1] | $92,000 | |
| Dividends payable-common | $92,000 | ||
| [To record declaration of cash dividends] | |||
| Jan.31 | No Entry on dividends record date | ||
| Feb.15 | Dividends payable-common | $92,000 | |
| Cash | $92,000 | ||
| [To record payment of cash dividends] | |||
| July 1 | No Entry for stock-split | ||
| Dec.15 | Retained earnings [184,000 x 10%] x $9 | $165,600 | |
| Common stock dividend distributable | $165,600 | ||
| [To record declaration of stock dividends] | |||
| Dec.30 | No Entry on dividends record date | ||
| Dec.31 | Retained earnings | $92,000 | |
| Dividends | $92,000 | ||
| [To record closing entry for dividends] | |||
| Dec.31 | Income summary [$456,000 x 0.70 after tax rate] | $319,200 | |
| Retained earnings | $319,200 | ||
| [To record closing entry for net income] |
Please give me a Thumbs up ?.Thanks!!
ekkarill92 answered 1 year agoRelated Solutions
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020:
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020: ($ in millions)Paid-in capital: Common stock, 900 million shares at $1 par..................................$ 900 Paid-in capital—excess of par.............................................................15,800 Retained earnings....................................................................................14,888 Total shareholders’ equity..................................................................$31,588 On March 16, 2021, a 4% common stock dividend was declared and distributed. The market value of the common stock was $21 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. ...
The shareholders' equity accounts of Crane Inc. at December 31, 2020, are as follows: Preferred shares,...
The shareholders' equity accounts of Crane Inc. at December 31,
2020, are as follows:
Preferred shares, $3 noncumulative, unlimited number
authorized, 2,000 issued
$200,000
Common shares, unlimited number authorized, 160,000 issued
800,000
Retained earnings
520,000
Accumulated other comprehensive loss
(54,000
)
Crane has a 40% income tax rate. During the following fiscal
year, ended December 31, 2021, the company had the following
transactions and events:
Feb.
1
Repurchased 10,000 common shares for $40,000.
July
12
Announced a 2-for-1 preferred stock...
PLEASE ANSWER RIGHT NOW!! On December 31, 2020, Sunland Corporation had the following shareholders’ equity accounts:...
PLEASE ANSWER RIGHT NOW!!
On December 31, 2020, Sunland Corporation had the following
shareholders’ equity accounts:
SUNLAND CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number
of shares authorized, 94,000 issued)
$1,172,000
Retained earnings
590,000
Total shareholders’ equity
$1,762,000
During the year, the following transactions occurred:
Jan.
15
Declared a $1 per share cash dividend to shareholders of record
on January 31, payable February 15.
July
1
Announced a 2-for-1 stock split. The market price per...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31,
2017:
Paid-in
capital:
Preferred stock, 8.5%, 94,000
shares at $1 par
$
94,000
Common stock, 444,400 shares at
$1 par
444,400
Paid-in capital—excess of par,
preferred
1,555,000
Paid-in capital—excess of par,
common
2,605,000
Retained earnings
9,345,000
Treasury stock, at cost; 4,400
common shares
(44,000
)
Total shareholders' equity
$
13,999,400
During 2018, several events and transactions affected the retained
earnings of Consolidated Paper.
Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31,
2017:
Paid-in
capital:
Preferred stock, 7.5%, 82,000
shares at $1 par
$
82,000
Common stock, 323,200 shares at
$1 par
323,200
Paid-in capital—excess of par,
preferred
1,445,000
Paid-in capital—excess of par,
common
2,495,000
Retained earnings
8,245,000
Treasury stock, at cost; 3,200
common shares
(38,400
)
Total shareholders' equity
$
12,551,800
During 2018, several events and transactions affected the retained
earnings of Consolidated Paper.
Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31, 2017:
Paid-in capital: Preferred stock, 7.0%, 91,000 shares at $1 par $
91,000 Common stock, 414,100 shares at $1 par 414,100 Paid-in
capital—excess of par, preferred 1,525,000 Paid-in capital—excess
of par, common 2,575,000 Retained earnings 9,045,000 Treasury
stock, at cost; 4,100 common shares (41,000 ) Total shareholders'
equity $ 13,609,100 During 2018, several events and transactions
affected the retained earnings of Consolidated Paper. Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31,
2017:
Paid-in capital:
Preferred stock, 8.0%, 85,000 shares at $1 par
$
85,000
Common stock, 353,500 shares at $1 par
353,500
Paid-in capital—excess of par, preferred
1,475,000
Paid-in capital—excess of par, common
2,525,000
Retained earnings
8,545,000
Treasury stock, at cost; 3,500 common shares
(38,500
)
Total shareholders' equity
$
12,945,000
During 2018, several events and transactions affected the retained
earnings of Consolidated Paper.
Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31, 2015:
Paid-in capital:
Preferred stock, 8.8%,
90,000 shares at $1 par
$
90,000
Common stock, 364,000
shares at $1 par
364,000
Paid-in capital—excess of
par, preferred
1,437,000
Paid-in capital—excess of
par, common
2,574,000
Retained earnings
9,735,000
Treasury stock, at cost; 4,000 common shares
(44,000
)
Total shareholders' equity
$
14,156,000
During 2016, several events and transactions affected the
retained earnings of Consolidated Paper.
Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31, 2015:
Paid-in
capital:
Preferred stock, 8.0%, 93,000
shares at $1 par
$
93,000
Common stock, 434,300 shares at
$1 par
434,300
Paid-in capital—excess of par,
preferred
1,545,000
Paid-in capital—excess of par,
common
2,595,000
Retained
earnings
9,245,000
Treasury stock, at
cost; 4,300 common shares
(51,600
)
Total shareholders'
equity
$
13,860,700
During 2016, several events and
transactions affected the retained earnings of Consolidated
Paper.
Required:...
The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31,...
The balance sheet of Consolidated Paper, Inc., included the
following shareholders’ equity accounts at December 31,
2017:
Paid-in
capital:
Preferred stock, 8.0%, 83,000
shares at $1 par
$
83,000
Common stock, 333,300 shares at
$1 par
333,300
Paid-in capital—excess of par,
preferred
1,455,000
Paid-in capital—excess of par,
common
2,505,000
Retained earnings
8,345,000
Treasury stock, at cost; 3,300
common shares
(36,300
)
Total shareholders' equity
$
12,685,000
During 2018, several events and transactions affected the retained
earnings of Consolidated Paper.
Required:...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What are the total return, the current yield, and the capital gains yield for the discount...
- According to the APA Ethics Code, was the psychologists’ involvement in this study ethical or unethical?...
- Carefully explain the implications (in terms of efficiency) of third degree price discrimination in a market...
- Create a family tree with a 3D vector in C++. Then, determine the worst, average and...
- Lessee enters into a four-year lease of equipment and concludes that the agreement is a finance...
- What recommendations can cyber security practitioners adopt in order to introduce a few immediate steps to...
- Scenario: While shopping in a local nursery, you meet Albert. Albert recently bought a new house...
ADVERTISEMENT