Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,610,000 shares of $10 par common stock. At no time has Marin issued any potentially dilutive securities. Listed below is a summary of Marin’s common stock activities.
| 1. | Number of common shares issued and outstanding at December 31, 2018 |
1,920,000 |
||
| 2. | Shares issued as a result of a 10% stock dividend on September 30, 2019 |
192,000 |
||
| 3. | Shares issued for cash on March 31, 2020 |
2,060,000 |
||
| Number of common shares issued and outstanding at December 31, 2020 |
4,172,000 |
|||
| 4. | A 2-for-1 stock split of Marin’s common stock took place on March 31, 2021 |
Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
| shares |
eTextbook and Media
Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement.
| shares |
eTextbook and Media
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement.
| shares |
eTextbook and Media
Compute the weighted-average number of common shares to be used in computing earnings per common share for 2021 on the 2021 comparative income statement.
| shares |
In: Accounting
C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares outstanding changed as follows.
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| Shares outstanding, January 1 | 150,000 | 120,000 | 100,000 |
| Sales of shares, April 1, 2020 | 20,000 | ||
| 25% stock dividend, July 1, 2021 | 30,000 | ||
| 2-for-1 stock split, July 1, 2022 | 150,000 | ||
| Shares sold, October 1, 2022 | 50,000 | ||
| Shares outstanding, December 31 | 350,000 | 150,000 | 120,000 |
Required
a. For purposes of calculating EPS at the end of each year, determine the number of shares outstanding. Hint: consider each reporting year separately.
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| Number of shares |
b. For purposes of calculating EPS at the end of 2022, when comparative statements are being prepared on a three-year basis, determine the number of shares outstanding for each year.
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| Number of shares |
c. Compute EPS for each year based on computations in part b. Assume net income is $375,000, $330,000, and $299,000, for years 2022, 2021, and 2020, respectively.
Note: Round earnings per share amounts to two decimal places.
| Basic EPS | Net Income Available to Common Stockholders |
Weighted Avg. Common Shares Outstanding |
Per Share |
|---|---|---|---|
| 2020 | |||
| 2021 | |||
| 2022 |
In: Accounting
On January 1, 2020, Galactus Corp. (lessor) entered into a noncancellable lease agreement with Blade Corp. (lessee) for machinery which was carried in Galactus’s accounting records at $2,265,000 and had a fair value of $2,400,000. Minimum lease payments under the lease agreement, which expires on December 31, 2029, total $3,550,000. Payments of $355,000 are due each January 1. The first payment was made on January 1, 2020 when the lease agreement was finalized. The interest rate of 10% which was stipulated in the lease agreement is the implicit rate set by the lessor. The effective interest method is being used. Blade expects the machine to have a ten-year life with no residual value, and be depreciated on a straight-line basis. Collectibility of the rentals is reasonably assured, and there are no important uncertainties surrounding the costs yet to be incurred by Galactus. Both entities are small private corporations that follow ASPE.
Instructions
a. From the lessee's viewpoint, what kind of lease is the above agreement? From the lessor's viewpoint, what kind of lease is the above agreement?
b. Ignoring income taxes, what should be the income reported by Galactus from the lease for calendar 2020?
c. Ignoring income taxes, what should be the expenses incurred by Blade from this lease for the calendar 2020?
d. What journal entries should be recorded by Blade Corp. on January 1, 2020?
e. What journal entries should be recorded by Galactus Corp. on January 1, 2020?
In: Accounting
Sunland Corporation hired a total of 18 new full-time employees on January 1, 2020. The employees are paid $770 per week, and no changes in this pay are expected for the following year. Each employee earns three weeks of vacation time during 2020, but no new employees take any vacation time during 2020, due to Sunland's company policy that vacations must be earned before they are taken. In 2021, 4 new employees took three weeks of vacation time, and 8 new employees took two weeks' vacation time.
Prepare the journal entry at the end of December, 2020, to record the vacation time earned by the new employees. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation Debit Credit
Prepare the journal entry in 2021 to record the payment of the vacation time. (Assume that only new employees have outstanding vacation at the end of 2020, all other employees used their vacation allotment by the end of 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation Debit Credit
In: Finance
Using the partial Unadjusted Trial Balance at yearend June 30, 2020 below prepare the annual adjusting journal entries in proper general journal form for the below transactions and answer additional questions. Please record all your answers in the journal entry table provided.
Account Title Dr. $ Cr. $
Prepaid Insurance 24,000.00
Notes Receivable 5,500.00
Shop Supplies 2,700.00
Delivery Vehicle 40,000.00
Accumulated Depreciation - Delivery Vehicle
0.00
Unearned Service Revenue 10,000.00
Notes Payable 5,000.00
a) January 1, 2020 a new delivery vehicle was purchased for $40,000. The delivery vehicle has an estimated salvage value of $4,000 and has a estimated useful life of 5 years. Record the depreciation.
b) Accrued revenues at year end totalled $4,200.
c) Employees are paid bi-weekly on Fridays. The total biweekly
wage expense for all employees is $10,000. The last pay day was
Friday, June 26, 2020 for work to the end of June 26, 2020.
Employees do not work weekends.
d)The Notes Payable represents a loan received on April 1, 2020.
Interest is accrued at 3% per year. Both the interest and principal
are payable on March 31, 2020.
e) At year end it was determined that $1,000 of the Shop Supplies had been used. What is the adjusted ending balance in the Shop Supplies account at year end. Please state whether it will be a debit or credit balance.
In: Accounting
The unadjusted inventory balance of Ultim Corp. is $100,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized.
a. On December 31, the physical inventory excluded $250 of merchandise inventory set aside for shipment to a customer, which has not yet shipped.
b. On December 31, the physical inventory excluded $1,000 of merchandise inventory out on consignment in the customers’ showrooms.
c. On December 31, the physical inventory excluded $800 of merchandise held on consignment.
d. $750 of in-transit merchandise was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. The merchandise was turned over to a common carrier on December 28, 2020, and is expected to arrive at the customer on January 2, 2021.
e. Ultim Corp. ordered merchandise on December 26, 2020. The merchandise ($800) was shipped to Ultim Corp. f.o.b. shipping point, and was expected to arrive January 2, 2021. The merchandise was not included in the physical inventory count.
f. A return to a vendor of merchandise for $1,000 was in-transit on December 31, 2020, and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point on December 30, 2020.
Required
Considering items a through f, determine the adjusted inventory balance for Ultim Corp.
| Adjusted inventory balance on December 31, 2020: | Answer |
In: Accounting
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $46,000 and a cost of $29,160 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 291,540 $ 500,000 Purchase returns 6,000 11,000 Purchase discounts 5,100 Gross sales 500,000 Sales returns 8,500 Employee discounts 3,500 Freight-in 27,000 Net markups 26,000 Net markdowns 11,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2020, inventory was $61,800, the cost-to-retail percentage for 2020 under the LIFO retail method was 64%, and the appropriate price index was 103% of the January 1, 2020, price level. The retail value of the December 31, 2021, inventory was $49,290, the cost-to-retail percentage for 2021 under the LIFO retail method was 63%, and the appropriate price index was 106% of the January 1, 2020, price level.
1. Estimate ending inventory for 2019 using the conventional retail method.
2. Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.
In: Accounting
E16.5 NEWTON INC USES A CALENDAR YEAR FOR FINANCIAL REPORTING. THE COMPANY IS AUTHORIZED TO ISSUE 9,000,000 SHARES OF 10 PAR COMMON STOCK. AT NO TIME HAS NEWTON ISSUED ANY POTENTIALLY DILUTIVE SECURITIES. LISTED BELOW IS A SUMMARY OF NEWTON'S COMMON STOCK ACTIVITIES
1.NUMBER OF COMMON SHARES ISSUED AND OUTSTANDING AT DECEMBER 31 2018 2,000,000
2. SHARES ISSUED AS A RESULT OF 10% STOCK DIVIDEND ON SEPTEMBER 30 2019. 200,000
3. SHARES ISSUED FOR CASH ON MARCH 31 2020 2,000,000
NUMBER OF COMMON SHARES ISSUED AND OUTSTANDING AT DECEMBER 31 2020 4,200,000
4. A 2-FOR-1 STOCK SPLIT OF NEWTON'S COMMON STOCK TOOK PLACE ON. MARCH 31 2021
A. COMPUTE THE WEIGHTED-AVERAGE OF COMMON SHARES USED IN COMPUTING EARNINGS PER COMMON SHAREFOR 2019 ON THE 2020. COMPARATIVE INCOME STATEMENT
B. COMPUTE THE WEIGHTED AVERAGE NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER COMMON SHARE FOR 2020 ON THE 2020 COMPARATIVE INCOME STATEMENT
C. COMPUTE THE WEIGHTED AVERAGE NUMBER OF COMMON SHARES TO BE USED IN COMPUTING EARNINGS PER COMMON SHARE FOR 2020 ON THE 2021 COMPARATIVE INCOME STATEMENT
D. COMPUTE THE WEIGHTED AVERAGE NUMBER OF COMMON SHARES TO BE USED IN COMPUTING EARNINGS OER COMMON SHARE FOR 2021 ON THE 2021 COMPARATIVE INCOME STATEMENT
In: Accounting
Recording Notes Receivable: Issuance, Payment, and Default Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes: On October 31, 2019 Marydale accepts a 6-month, 12% note from Customer A in lieu of a $3,600 cash payment for merchandise delivered on that day. On February 28, 2020 Marydale accepts a 6-month, $2,100, 12% note from Customer B in lieu of a $2,100 cash payment for merchandise delivered on that day. On April 30, 2020 Customer A pays the entire note plus interest in cash. On August 31, 2020 Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale's records. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Oct. 31, 2019 Record sale Dec. 31, 2019 Record accrued interest income b. Feb. 28, 2020 Record sale c. Apr. 30, 2020 Record collection of note receivable d. Aug. 31, 2020 Record collection of note receivable
In: Accounting
You and a group of friends wish to start a company. You have an
idea, and you are comparing startup incubators to apply to. (Start
up incubators hold classes and help startups to contact venture
capitalists and network with one another) Assume funding is
normally distributed.
Incubator A has a 70% success ratio getting companies to survive at
least 4 years from inception. The average venture funding of the 28
companies reaching that 4 year mark, is 1.3 million dollars with a
standard deviation of 0.6 million
Incubator B has a 40% success ratio getting companies to survive
at least 4 years from inception. The average venture funding of the
20 companies reaching that 4 year mark, is 1.9 million dollars with
a standard deviation of 0.55 million
a. Are the success ratios significantly different?(note the count
is given but not N, how do you find N?)
b. Is the average funding in incubator B significantly different
from the average funding in a. (use =0.01). Assume a normal
distribution
In: Statistics and Probability