Question

In: Accounting

Murderer of Love began operations on 1/1/2016. All shares of common and preferred stock were issued...

Murderer of Love began operations on 1/1/2016. All shares of common and preferred stock were issued on that date. The following information relates to the company as of December 31, 2018:

Balance sheet info 2018

Preferred Stock, Cumulative, Par $5,10% dividend rate $160,000

Additional pain in capital- Preferred stcok 40,000

Common stock par $2 400,000

Additional pain in capital- common stock 3,024,000

Treasury Stock- 1,000 shares repurchased during 2016 (20,000)

Beginning Retained Earnings balance ( as of Jan. 1, 2018) 180,000

Income statement Info 2018

Net income 414,000

During 2018, Murderer of Love declared and paid a cash dividend of $60,000. The only other dividend the company has ever issued was a $20,000 cash dividend declared and paid during 2016.

Required (1):  What should be the company’s ending retained earnings balance (as of December 31, 2018)? Answer below.

Answer: Work (optional):

Question 2

Required (2):  How many shares of common stock were issued on 1/1/16?

Answer: Work (optional):

Question 3

Required (3):  How many shares of common stock are outstanding as of December 31, 2018?

Answer: Work (optional):

Question 4

Required (4):  How much did Murderer of Love receive per share when the preferred stock was issued?

Answer: Work (optional):

Question 5

Required (5):  How much of the cash dividend declared and paid in 2018 was paid to common stockholders?

Answer: Work (optional):

Question 6

Required (6):  What is Murderer of Love's earnings per share for the year ended December 31, 2018?

Answer: Work (optional):

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Murderer of Love began operations on 1/1/2016. All shares of common and preferred stock were issued...
Murderer of Love began operations on 1/1/2016. All shares of common and preferred stock were issued on that date. The following information relates to the company as of December 31, 2018: Balance sheet info 2018 Preferred Stock, Cumulative, Par $5,10% dividend rate $160,000 Additional pain in capital- Preferred stcok 40,000 Common stock par $2 400,000 Additional pain in capital- common stock 3,024,000 Treasury Stock- 1,000 shares repurchased during 2016 (20,000) Beginning Retained Earnings balance ( as of Jan. 1, 2018)...
   On January 1, 2016, A Corp. issued shares of its common stock to acquire all of...
   On January 1, 2016, A Corp. issued shares of its common stock to acquire all of the outstanding common stock of B Inc. B’s book value was only $140,000 at the time, but A issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. A was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on B's records by $60,000 while equipment (five-year life) was undervalued...
Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for...
Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for a lump sum of $87,000 cash. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock. Give the entry for the issuance...
Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for...
Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for a lump sum of $62,000 cash. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (Credit account titles are automatically indented...
Common and preferred stock-issuances and dividends Permabilt Corp. Was incorporated on January 1, 2016, and issued...
Common and preferred stock-issuances and dividends Permabilt Corp. Was incorporated on January 1, 2016, and issued the following stock for cash: 4,000,000 shares of no-par common stock were authorized; 1,750,000 shares were issued on January 1, 2016, at $45 per share. 1,800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized, and 840,000 shares were issued on January 1, 2016, at $105 per share. Net income for the years ended December 31, 2016, 2017,and 2018 was $38,000,000, $46,000,000,...
2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019,...
2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as...
Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a lump sum
Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a lump sum of $55,000 cash. 1). Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) 2). Give the entry for...
On April 1, 12,000 shares of $5 par common stock were issued at $24, and on...
On April 1, 12,000 shares of $5 par common stock were issued at $24, and on April 7, 3,000 shares of $50 par preferred stock were issued at $106. Required: Journalize the entries for April 1 and 7. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Supplies 151 Prepaid Insurance 181 Land 191 Buildings 192...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding Common Stock...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding Common Stock - $.20 Par Value 2,000,000 shares authorized, 1,650,000 shares issued and outstanding Requirement 1. Sapphire declares cash dividends of $28,000 for 2018. How much of the dividends goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.) Sapphire dividend would be divided between preferred and common stockholders in this? manner: Total Dividend Dividend to...
PROBLEM 2 On January 1, 2016, Biden Corp. issued shares of its common stock to acquire...
PROBLEM 2 On January 1, 2016, Biden Corp. issued shares of its common stock to acquire all of the outstanding common stock of Raffie Inc. Raffie’s book value was only $140,000 at the time, but Biden issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. Biden was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on Raffie's records by $60,000 while equipment (five-year life)...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT