Questions
Pina Corporation has outstanding 2,973,000 shares of common stock with a par value of $10 each....

Pina Corporation has outstanding 2,973,000 shares of common stock with a par value of $10 each. The balance in its Retained Earnings account at January 1, 2020, was $23,787,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $5,044,000. During 2020, the company’s net income was $4,693,000. A cash dividend of $0.60 a share was declared on May 5, 2020, and was paid June 30, 2020, and a 6% stock dividend was declared on November 30, 2020, and distributed to stockholders of record at the close of business on December 31, 2020. You have been asked to advise on the proper accounting treatment of the stock dividend.

The existing stock of the company is quoted on a national stock exchange. The market price of the stock has been as follows.
October 31, 2020 $33
November 30, 2020 $36
December 31, 2020 $40

(a and b)

(a) Prepare the journal entry to record (1) the declaration and (2) payment of the cash dividend.
(b) Prepare the journal entry to record (1) the declaration and (2) distribution of the stock dividend.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Date

Account Titles and Explanation

Debit

Credit
(a) (1)

May 5June 30Nov. 30Dec. 31
(a) (2)

May 5June 30Nov. 30Dec. 31
(b) (1)

May 5June 30Nov. 30Dec. 31
(b) (2)

May 5June 30Nov. 30Dec. 31

In: Accounting

Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products...

Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company’s bank in late 2019 seeking short-term financing, he was told that money was very tight and that any borrowing over the next year would have to be supported by a detailed statement of cash receipts and disbursements. He was also told that it would be very helpful to the bank if borrowers would indicate the quarters in which they would be needing funds, as well as the amounts that would be needed, and the quarters in which repayments could be made.

     Since the treasurer is unsure as to the particular quarters in which the bank financing will be needed, he has assembled the following information to assist in preparing a detailed cash budget:
a.

Budgeted sales and merchandise purchases for the year 2020, as well as actual sales and purchases for the last quarter of 2019, are as follows:
Sales Merchandise
Purchases
  2019:
     Fourth-quarter actual $ 500,000 $ 315,000
  2020:      
     First-quarter estimated 750,000 465,000
     Second-quarter estimated 1,000,000 620,000
     Third-quarter estimated 1,250,000 762,500
     Fourth-quarter estimated 500,000 315,000
b.

The company normally collects 65% of a quarter’s sales before the quarter ends and another 33% in the following quarter. The remainder are uncollectible. This pattern of collections is now being experienced in the 2019 fourth-quarter actual data.
c.

80% of a quarter’s merchandise purchases are paid for within the quarter. The remainder are paid in the following quarter.
d.

Operating expenses for the year 2020 are budgeted quarterly at $125,000 plus 15% of sales. Of the fixed amount, $50,000 each quarter is depreciation.
e. The company will pay $25,000 in dividends each quarter.
f.

Equipment purchases of $187,500 will be made in the second quarter, and purchases of $120,000 will be made in the third quarter. These purchases will be for cash.
g.

The cash account contained $25,000 at the end of 2019. The treasurer feels that this represents a minimum balance that must be maintained.
h.

Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter at an annual interest rate of 10%. Interest is paid only when the principal is repaid. All borrowings and all repayments of the principal must be in round $1,000 amounts. Interest payments can be in any amount. (Compute interest on whole months, e.g., 1/12, 2/12.)
i. At present, the company has no loans outstanding.
Required:
1. Prepare the following by quarter and in total for the year 2020:
a. A schedule of expected cash collections.

            

b. A schedule of budgeted cash disbursements for merchandise purchases.

            

2.

Compute the expected cash payments for operating expenses, by quarter and in total, for the year 2020.

     

3.

Prepare a cash budget, by quarter and in total, for the year 2020. In your budget, clearly show the quarter(s) in which borrowing will be necessary and the quarter(s) in which repayments can be made, as requested by the company’s bank. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and "Interest" should be indicated by a minus sign.)

     


In: Accounting

Problem 23-01 The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and...

Problem 23-01

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$812,400

$700,100

$112,300

Accounts receivable

1,135,500

1,158,500

(23,000

)

Inventory

1,844,800

1,713,900

130,900

Property, plant, and equipment

3,316,600

2,964,200

352,400

Accumulated depreciation

(1,160,900

)

(1,040,300

)

(120,600

)

Investment in Myers Co.

309,500

274,000

35,500

Loan receivable

250,500

—

250,500

   Total assets

$6,508,400

$5,770,400

$738,000

Accounts payable

$1,015,400

$955,000

$60,400

Income taxes payable

29,900

50,300

(20,400

)

Dividends payable

79,600

100,500

(20,900

)

Lease liabililty

412,000

—

412,000

Common stock, $1 par

500,000

500,000

—

Paid-in capital in excess of par—common stock

1,511,500

1,511,500

—

Retained earnings

2,960,000

2,653,100

306,900

   Total liabilities and stockholders’ equity

$6,508,400

$5,770,400

$738,000


Additional information:

1. On December 31, 2019, Flounder acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Flounder loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Flounder sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash.
4. On December 31, 2020, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Flounder made the first rental payment of $59,700 when due on January 2, 2021.
5. Net income for 2020 was $386,500.
6. Flounder declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

 December 15, 2020 December 15, 2019

Paid

 February 28, 2021 February 28, 2020

Amount

 $79,600 $100,500


Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

Problem 23-01 The following are Kingbird Corp.’s comparative balance sheet accounts at December 31, 2020 and...

Problem 23-01

The following are Kingbird Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$821,300

$694,000

$127,300

Accounts receivable

1,124,400

1,158,200

(33,800

)

Inventory

1,852,600

1,702,600

150,000

Property, plant, and equipment

3,300,400

2,951,400

349,000

Accumulated depreciation

(1,174,500

)

(1,048,100

)

(126,400

)

Investment in Myers Co.

312,300

273,800

38,500

Loan receivable

250,100

—

250,100

   Total assets

$6,486,600

$5,731,900

$754,700

Accounts payable

$1,019,600

$959,800

$59,800

Income taxes payable

29,800

50,100

(20,300

)

Dividends payable

79,400

99,100

(19,700

)

Lease liabililty

408,500

—

408,500

Common stock, $1 par

500,000

500,000

—

Paid-in capital in excess of par—common stock

1,504,000

1,504,000

—

Retained earnings

2,945,300

2,618,900

326,400

   Total liabilities and stockholders’ equity

$6,486,600

$5,731,900

$754,700


Additional information:

1. On December 31, 2019, Kingbird acquired 25% of Myers Co.’s common stock for $273,800. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,095,200. Myers reported income of $154,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Kingbird loaned $309,100 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $59,000, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Kingbird sold equipment costing $59,500, with a carrying amount of $38,400, for $39,900 cash.
4. On December 31, 2020, Kingbird entered into a capital lease for an office building. The present value of the annual rental payments is $408,500, which equals the fair value of the building. Kingbird made the first rental payment of $59,800 when due on January 2, 2021.
5. Net income for 2020 was $405,800.
6. Kingbird declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

 December 15, 2020 December 15, 2019

Paid

 February 28, 2021 February 28, 2020

Amount

 $79,400 $99,100


Prepare a statement of cash flows for Kingbird Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

Problem 23-01 Your answer is partially correct. Try again. The following are Marigold Corp.’s comparative balance...

Problem 23-01

Your answer is partially correct. Try again.
The following are Marigold Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$810,600

$701,400

$109,200

Accounts receivable

1,135,300

1,156,300

(21,000

)

Inventory

1,850,800

1,708,800

142,000

Property, plant, and equipment

3,318,800

2,955,300

363,500

Accumulated depreciation

(1,164,400

)

(1,035,600

)

(128,800

)

Investment in Myers Co.

307,400

277,400

30,000

Loan receivable

248,800

—

248,800

   Total assets

$6,507,300

$5,763,600

$743,700

Accounts payable

$1,015,700

$949,200

$66,500

Income taxes payable

30,200

50,000

(19,800

)

Dividends payable

79,500

100,400

(20,900

)

Lease liabililty

423,200

—

423,200

Common stock, $1 par

500,000

500,000

—

Paid-in capital in excess of par—common stock

1,499,000

1,499,000

—

Retained earnings

2,959,700

2,665,000

294,700

   Total liabilities and stockholders’ equity

$6,507,300

$5,763,600

$743,700

Additional information:
1. On December 31, 2019, Marigold acquired 25% of Myers Co.’s common stock for $277,400. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,600. Myers reported income of $120,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Marigold loaned $323,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $74,800, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Marigold sold equipment costing $59,700, with a carrying amount of $37,700, for $39,900 cash.
4. On December 31, 2020, Marigold entered into a capital lease for an office building. The present value of the annual rental payments is $423,200, which equals the fair value of the building. Marigold made the first rental payment of $60,000 when due on January 2, 2021.
5. Net income for 2020 was $374,200.
6. Marigold declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

 December 15, 2020 December 15, 2019

Paid

 February 28, 2021 February 28, 2020

Amount

 $79,500 $100,400

Prepare a statement of cash flows for Marigold Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$822,600

$700,100

$122,500

Accounts receivable

1,139,300

1,157,900

(18,600

)

Inventory

1,835,600

1,726,700

108,900

Property, plant, and equipment

3,276,300

2,980,900

295,400

Accumulated depreciation

(1,165,600

)

(1,047,400

)

(118,200

)

Investment in Myers Co.

312,200

272,500

39,700

Loan receivable

251,900

—

251,900

   Total assets

$6,472,300

$5,790,700

$681,600

Accounts payable

$1,016,000

$949,400

$66,600

Income taxes payable

30,200

49,700

(19,500

)

Dividends payable

79,200

99,100

(19,900

)

Lease liabililty

355,000

—

355,000

Common stock, $1 par

500,000

500,000

—

Paid-in capital in excess of par—common stock

1,501,300

1,501,300

—

Retained earnings

2,990,600

2,691,200

299,400

   Total liabilities and stockholders’ equity

$6,472,300

$5,790,700

$681,600


Additional information:

1. On December 31, 2019, Flounder acquired 25% of Myers Co.’s common stock for $272,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,090,000. Myers reported income of $158,800 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Flounder loaned $255,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $3,600, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Flounder sold equipment costing $59,600, with a carrying amount of $37,800, for $39,900 cash.
4. On December 31, 2020, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $355,000, which equals the fair value of the building. Flounder made the first rental payment of $60,100 when due on January 2, 2021.
5. Net income for 2020 was $378,600.
6. Flounder declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

 December 15, 2020 December 15, 2019

Paid

 February 28, 2021 February 28, 2020

Amount

 $79,200 $99,100


Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS

2020

2019

Increase
(Decrease)

Cash

$807,900

$696,100

$111,800

Accounts receivable

1,130,100

1,166,300

(36,200

)

Inventory

1,850,400

1,707,300

143,100

Property, plant, and equipment

3,324,100

2,995,100

329,000

Accumulated depreciation

(1,163,100

)

(1,032,700

)

(130,400

)

Investment in Myers Co.

308,700

277,600

31,100

Loan receivable

250,800

—

250,800

   Total assets

$6,508,900

$5,809,700

$699,200

Accounts payable

$1,019,400

$949,200

$70,200

Income taxes payable

30,100

50,300

(20,200

)

Dividends payable

79,800

99,100

(19,300

)

Lease liabililty

389,500

—

389,500

Common stock, $1 par

500,000

500,000

—

Paid-in capital in excess of par—common stock

1,499,000

1,499,000

—

Retained earnings

2,991,100

2,712,100

279,000

   Total liabilities and stockholders’ equity

$6,508,900

$5,809,700

$699,200


Additional information:

1. On December 31, 2019, Waterway acquired 25% of Myers Co.’s common stock for $277,600. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,110,400. Myers reported income of $124,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2. During 2020, Waterway loaned $289,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $38,400, plus interest at 10%, on December 31, 2020.
3. On January 2, 2020, Waterway sold equipment costing $60,500, with a carrying amount of $38,400, for $39,800 cash.
4. On December 31, 2020, Waterway entered into a capital lease for an office building. The present value of the annual rental payments is $389,500, which equals the fair value of the building. Waterway made the first rental payment of $60,100 when due on January 2, 2021.
5. Net income for 2020 was $358,800.
6. Waterway declared and paid the following cash dividends for 2020 and 2019.

2020

2019

Declared

 December 15, 2020 December 15, 2019

Paid

 February 28, 2021 February 28, 2020

Amount

 $79,800 $99,100


Prepare a statement of cash flows for Waterway Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

WATERWAY CORP.
Statement of Cash Flows

In: Accounting

Before workers’ compensation weekly benefits become payable, a(n) _waiting period_____________ must elapse. 474 Therapy using real...

  1. Before workers’ compensation weekly benefits become payable, a(n) _waiting period_____________ must elapse. 474
  1. Therapy using real or simulated work duties to build up an injured employee’s strength and endurance after an injury is called _____________.
  1. If a patient disagrees with an insurance decision, he or she may file a(n) ______________________.

In: Nursing

I have a sample size of 58 for a process improvement on reducing spending. My improvement...

I have a sample size of 58 for a process improvement on reducing spending. My improvement lasted for 9 weeks, 5 weeks I collected 40 receipts of expenses before and after my process improvement I collected 18 receipts. Can someone help me calculate a confidence interval?

In: Statistics and Probability

You plan to retire in 40 years. After that, you want to receive an annuity of...

You plan to retire in 40 years. After that, you want to receive an annuity of 5000 per month for 25 years, beginning immediately upon retirement. If you can earn 6% per year, compounded monthly, how much must you invest at the end of each month before retirement?

In: Finance