The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 6 million shares; issued and outstanding, 2 million shares $ 2,000,000 Paid-in capital—excess of par 8,000,000 Retained earnings 9,000,000
On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $22 on April 1, 2021, and $32 on June 1, 2021.
Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
Complete the below table to calculate the stock dividend.
|
In: Accounting
The shareholders’ equity of Core Technologies Company on June
30, 2020, included the following:
| Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 4 million shares |
$ | 4,000,000 | |
| Paid-in capital—excess of par | 12,000,000 | ||
| Retained earnings | 34,000,000 | ||
On April 1, 2021, the board of directors of Core Technologies
declared a 25% stock dividend on common shares, to be distributed
on June 1. The market price of Core Technologies’ common stock was
$30 on April 1, 2021, and $40 on June 1, 2021.
Required:
1. Prepare the journal entry to record the stock dividend if the
company treats the distribution as normal stock dividends.
2. Prepare the journal entry to record the stock dividend if the company treats the distribution as "large" stock dividends effected in the form of a stock dividend.
3. Prepare the journal entry to record the stock dividend if the company treats the distribution as a stock split.
In: Accounting
On January 1, 2020, the ledger of Bramble Company contains the
following liability accounts.
| Accounts Payable | $51,000 | |
| Sales Taxes Payable | 9,000 | |
| Unearned Service Revenue | 16,500 |
During January, the following selected transactions
occurred.
| Jan. 5 | Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. | |
| 12 | Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) | |
| 14 | Paid state revenue department for sales taxes collected in December 2019 ($9,000). | |
| 20 | Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty. | |
| 21 | Borrowed $27,000 from Girard Bank on a 3-month, 8%, $27,000 note. | |
| 25 |
Sold merchandise for cash totaling $9,828, which includes 8% sales taxes. Journalize the January transactions. (Credit account
titles are automatically indented when amount is entered. Do not
indent manually. Record journal entries in the order presented in
the problem.) |
In: Accounting
In: Accounting
On 30 April 2020 Chen & Chan Ltd had a cash balance as per company records of $5,644.50 debit. The bank statement from Brisbane Bank on that date showed a credit balance of $7,825.35. A comparison of the statement with the cash account revealed the following facts:
Required:
In: Accounting
Blue Leasing Company agrees to lease equipment to Kingbird Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $489,000, and the fair value of the asset on January 1, 2020, is $699,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Kingbird estimates that the expected residual value at the end of the lease term will be 60,000. Kingbird amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments is probable. 6. Blue desires a 9% rate of return on its investments. Kingbird’s incremental borrowing rate is 10%, and the lessor’s implicit rate is unknown. (Assume the accounting period ends on December 31.)
Calculate the amount of the annual rental payment required.
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and the final answer to 0 decimal places e.g.
58,972.)
| Annual rental payment | $ |
In: Accounting
Answer separately:
1. The adjusted trial balance of Miller Company at December 31,
2020, includes the following accounts: Owner’s Capital $16,400,
Owner’s Drawings $7,000, Service Revenue $39,000, Salaries and
Wages Expense $16,000, Insurance Expense $2,000, Rent Expense
$4,000, Supplies Expense $1,500, and Depreciation Expense $1,300.
Prepare an income statement for the year.
2. Partial adjusted trial balance data for Miller Company is presented in the previous exercise. The balance in Owner’s Capital is the balance as of January 1. Prepare an owner’s equity statement for the year assuming net income is $14,200 for the year.
In: Accounting
Wildhorse Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
|
WILDHORSE INC. |
||||||
|---|---|---|---|---|---|---|
|
12/31/20 |
12/31/19 |
|||||
|
Cash |
$6,100 |
$6,900 |
||||
|
Accounts receivable |
61,900 |
50,600 |
||||
|
Short-term debt investments (available-for-sale) |
34,700 |
18,100 |
||||
|
Inventory |
40,000 |
59,400 |
||||
|
Prepaid rent |
5,000 |
4,000 |
||||
|
Equipment |
152,800 |
128,900 |
||||
|
Accumulated depreciation—equipment |
(34,900 |
) |
(25,100 |
) |
||
|
Copyrights |
46,100 |
50,400 |
||||
|
Total assets |
$311,700 |
$293,200 |
||||
|
Accounts payable |
$45,800 |
$40,100 |
||||
|
Income taxes payable |
3,900 |
6,000 |
||||
|
Salaries and wages payable |
8,100 |
4,000 |
||||
|
Short-term loans payable |
8,100 |
10,100 |
||||
|
Long-term loans payable |
59,900 |
69,400 |
||||
|
Common stock, $10 par |
100,000 |
100,000 |
||||
|
Contributed capital, common stock |
30,000 |
30,000 |
||||
|
Retained earnings |
55,900 |
33,600 |
||||
|
Total liabilities & stockholders’ equity |
$311,700 |
$293,200 |
||||
|
WILDHORSE INC. |
||||
|---|---|---|---|---|
|
Sales revenue |
$339,275 |
|||
|
Cost of goods sold |
174,600 |
|||
|
Gross profit |
164,675 |
|||
|
Operating expenses |
120,100 |
|||
|
Operating income |
44,575 |
|||
|
Interest expense |
$11,200 |
|||
|
Gain on sale of equipment |
2,000 |
9,200 |
||
|
Income before tax |
35,375 |
|||
|
Income tax expense |
7,075 |
|||
|
Net income |
$28,300 |
|||
Additional information:
| 1. | Dividends in the amount of $6,000 were declared and paid during 2020. | |
| 2. | Depreciation expense and amortization expense are included in operating expenses. | |
| 3. | No unrealized gains or losses have occurred on the investments during the year. | |
| 4. | Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. |
Prepare a statement of cash flows 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
On January 1, 2020, Sandhill Company purchased 8% bonds having a maturity value of $400,000, for $433,699.52. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sandhill Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Jan. 1, 2020 |
enter an account title to record the transaction on January 1, 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction on January 1, 2020 |
enter a debit amount |
enter a credit amount |
eTextbook and Media
Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)
|
Schedule of Interest Revenue and Bond Premium
Amortization |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
|
Cash |
Interest |
Premium |
Carrying Amount |
|||||
|
1/1/20 |
$enter a dollar amount rounded to 2 decimal places |
$enter a dollar amount rounded to 2 decimal places |
$enter a dollar amount rounded to 2 decimal places |
$enter a dollar amount rounded to 2 decimal places |
|||||
|
1/1/21 |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
|||||
|
1/1/22 |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
|||||
|
1/1/23 |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
|||||
|
1/1/24 |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
|||||
|
1/1/25 |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
enter a dollar amount rounded to 2 decimal places |
|||||
eTextbook and Media
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. 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.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Dec. 31, 2020 |
enter an account title to record the transaction on December 31, 2020 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction on December 31, 2020 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the transaction on December 31, 2020 |
enter a debit amount |
enter a credit amount |
eTextbook and Media
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
Dec. 31, 2021 |
enter an account title to record the transaction on December 31, 2021 |
enter a debit amount |
enter a credit amount |
|
enter an account title to record the transaction on December 31, 2021 |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record the transaction on December 31, 2021 |
In: Accounting
On January 1, 2020, Flounder Company acquires $130,000 of Spiderman Products, Inc., 9% bonds at a price of $120,632. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Flounder Company a 12% yield. The bonds are classified as held-to-maturity.
(a)
Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.)
|
Schedule of Interest Revenue and Bond Discount
Amortization |
||||||||
|---|---|---|---|---|---|---|---|---|
|
|
Cash |
Interest |
Bond Discount |
Carrying Amount |
||||
| 1/1/20 |
$enter a dollar amount |
$enter a dollar amount |
$enter a dollar amount |
$enter a dollar amount |
||||
| 1/1/21 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
| 1/1/22 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
| 1/1/23 |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
enter a dollar amount |
||||
eTextbook and Media
Attempts: 0 of 3 used
Using multiple attempts will impact your score.
20% score reduction after attempt 2
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c) and (d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
In: Accounting