1. One way of accessing financial information about a company is to look it up at the company's website. Access the most recent annual report of a company of your choice from the company's website and address the following points. a. Review the company's footnotes (notes accompanying the financial statements) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover. b. Based on your observation of the financial statements, what amount should be credited to Income Summary to summarize its revenues earned? c. Based on your observation of the financial statements, what amount should be debited to Income Summary to summarize its expenses incurred? d. What is the balance of its Income Summary account before it's closed?
In: Accounting
P16.9 (LO 4) (EPS with Stock Dividend and Discontinued Operations) Christina Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Christina employs a fiscal year ending May 31.
Income from operations before income taxes for Christina was $1,400,000 and $660,000, respectively, for fiscal years ended May 31, 2021 and 2020. Christina experienced a loss from discontinued operations of $400,000 on March 3, 2021. A 20% combined income tax rate pertains to any and all of Christina Corporation's profits, gains, and losses.
Christina's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options.
Christina issued 40,000 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears.
There were 1,000,000 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Christina sold an additional 400,000 shares of the common stock at $17 per share. Christina distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years.
Instructions
Determine the weighted-average number of common shares that would
be used in computing earnings per share on the current comparative
income statement for:
The year ended May 31, 2020.
The year ended May 31, 2021.
Starting with income from operations before income taxes, prepare a
comparative income statement for the years ended May 31, 2021 and
2020. The statement will be part of Christina Corporation's annual
report to stockholders and should include appropriate earnings per
share presentation.
The capital structure of a corporation is the result of its past
financing decisions. Furthermore, the earnings per share data
presented on a corporation's financial statements is dependent upon
the capital structure.
Explain why Christina Corporation is considered to have a simple
capital structure.
Describe how earnings per share data would be presented for a
corporation that has a complex capital structure.
In: Accounting
Accounting Cycle Review 15 a-e
Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.
|
Debit |
Credit |
|||
|
Cash |
$27,700 |
|||
|
Accounts Receivable |
54,000 |
|||
|
Inventory |
23,100 |
|||
|
Land |
65,800 |
|||
|
Buildings |
86,900 |
|||
|
Equipment |
31,000 |
|||
|
Allowance for Doubtful Accounts |
$440 |
|||
|
Accumulated Depreciation—Buildings |
27,000 |
|||
|
Accumulated Depreciation—Equipment |
15,000 |
|||
|
Accounts Payable |
19,000 |
|||
|
Interest Payable |
–0– |
|||
|
Dividends Payable |
–0– |
|||
|
Unearned Rent Revenue |
8,000 |
|||
|
Bonds Payable (10%) |
50,000 |
|||
|
Common Stock ($10 par) |
32,000 |
|||
|
Paid-in Capital in Excess of Par—Common Stock |
6,400 |
|||
|
Preferred Stock ($20 par) |
–0– |
|||
|
Paid-in Capital in Excess of Par—Preferred Stock |
–0– |
|||
|
Retained Earnings |
26,860 |
|||
|
Treasury Stock |
–0– |
|||
|
Cash Dividends |
–0– |
|||
|
Sales Revenue |
615,000 |
|||
|
Rent Revenue |
–0– |
|||
|
Bad Debt Expense |
–0– |
|||
|
Interest Expense |
–0– |
|||
|
Cost of Goods Sold |
408,000 |
|||
|
Depreciation Expense |
–0– |
|||
|
Other Operating Expenses |
39,300 |
|||
|
Salaries and Wages Expense |
63,900 |
|||
|
Total |
$799,700 |
$799,700 |
Unrecorded transactions and adjustments:
| 1. | On January 1, 2020, Ivanhoe issued 1,200 shares of $20 par, 6% preferred stock for $26,400. | |
| 2. | On January 1, 2020, Ivanhoe also issued 1,100 shares of common stock for $26,400. | |
| 3. | Ivanhoe reacquired 320 shares of its common stock on July 1, 2020, for $50 per share. | |
| 4. | On December 31, 2020, Ivanhoe declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021. | |
| 5. | Ivanhoe estimates that uncollectible accounts receivable at year-end is $5,400. | |
| 6. | The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,900. | |
| 7. | The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,100. | |
| 8. | The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021). | |
| 9. | The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded. |
(Ignore income taxes.)
1. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2. Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in part(a).
3. Prepare a multiple-step income statement for the year ending December 31, 2020. (List other revenues before other expenses.)
4. Prepare a retained earnings statement for the year ending December 31, 2020. (List items that increase retained earning first.)
5. Prepare a classified balance sheet as of December 31, 2020.
(List Current Assets in order of liquidity. List
Property, Plant and Equipment in order of Land, Buildings and
Equipment. Enter account name only and do not provide descriptive
information.)
In: Accounting
Briefly describe the history of antitrust policies in the United States. What are the advantages and disadvantages of highly concentrated industries? Does market power encourage or discourage innovation? Under what circumstances should the government use its antitrust authority to limit industry concentration and market power?
In: Economics
2.Define in detail the terms science and technology. How are these terms different, similar and what is the connection between them? Define in detail the terms invention and innovation. Are there any differences, similarities and connection between them? Why? As part of your description include an example of each type.
In: Mechanical Engineering
What material changes could advance the item leading?
(for example, to improvements in sustainability, accessibility, affordability, equity, performance, etc..)
Use materials property data and knowledge of materials selection strategies to support your proposed material innovation.
(Can you please not answer handwriting)
In: Mechanical Engineering
Explain why nations with Socialist run governments generally have lower levels of innovation and poor-quality living environments for citizens. Your answer should include the differences between Capitalism and Socialism outlined by the 3 questions that a Government Structure must answer in establishing an economy
In: Economics
CEMIG, Electric Utilities, Brazil
pls find out the aspects of that particular company in the above mentioned fields
In: Finance
Briefly describe the history of antitrust policies in the United States. What are the advantages and disadvantages of highly concentrated industries? Does market power encourage or discourage innovation? Under what circumstances should the government use its antitrust authority to limit industry concentration and market power?
In: Economics
Innovative customer management
what are some of the elements of customers service ? Explain how they are measured .Looking at innovation and modernization needs of retail managers,how do customer expectations influence customer satisfaction? Explain how a commitment to customer success is the highest level of customer management.
In: Operations Management