Bella Donna Company has 100,000 shares of $4 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $9 per share. On February 3, 2018, Bella Donna repurchased 3,690 shares at $6 per share for the purposes of retiring them. What will be the balance in Paid in capital in excess of par after February 3rd transaction?
PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU
In: Accounting
Van Rushing Hunting Goods’ fiscal year ends on December 31. At the end of the 2018 fiscal year, the company had notes payable of $9.2 million due on February 8, 2019. Rushing sold 2.0 million shares of its $0.25 par, common stock on February 3, 2019, for $5.6 million. The proceeds from that sale along with $3.6 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of Rushing’s construction workers notified management on January 5, 2019, that he planned to sue the company for $1 million related to a work-site injury on December 20, 2018. As of December 31, 2018, management had been unaware of the injury, but reached an agreement on February 23, 2019, to settle the matter by paying the employee’s medical bills of $75,500. Rushing’s financial statements were finalized on March 3, 2019.
Required: 4. What amount(s) if any, related to the situations described should Rushing report among current liabilities and long-term liabilities in its balance sheet at December 31, 2018 if the work-site injury had occurred on January 3, 2019, instead?
In: Accounting
The balance sheets for Plasma Screens Corporation and additional information are provided below.
|
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 |
||||
| 2018 | 2017 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 242,000 | $ | 130,000 |
| Accounts receivable | 98,000 | 102,000 | ||
| Inventory | 105,000 | 90,000 | ||
| Investments | 5,000 | 3,000 | ||
| Long-term assets: | ||||
| Land | 580,000 | 580,000 | ||
| Equipment | 890,000 | 770,000 | ||
| Less: Accumulated depreciation | (528,000) | (368,000) | ||
| Total assets | $ | 1,392,000 | $ | 1,307,000 |
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 109,000 | $ | 95,000 |
| Interest payable | 7,000 | 13,000 | ||
| Income tax payable | 9,000 | 6,000 | ||
| Long-term liabilities: | ||||
| Notes payable | 110,000 | 220,000 | ||
| Stockholders' equity: | ||||
| Common stock | 800,000 | 800,000 | ||
| Retained earnings | 357,000 | 173,000 | ||
| Total liabilities and stockholders' equity | $ | 1,392,000 | $ | 1,307,000 |
|
Additional information for 2018: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
1. Calculate the following profitability ratios for 2018: (Round your answers to 1 decimal place.) |
||||
|
a. gross profit ratio b. return on assets c. profit margin d. asset turnover e. return on equity |
||||
In: Accounting
The Dent Sign Company uses the allowance method in accounting for uncollectible accounts. The company uses income statement approach to estimate uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2017, and December 31, 2018, appear below:
12/31/1712/31/18
Net Credit Sales$400,000$500,000
Accounts Receivable75,000100,000
Allowance for Doubtful Accounts5,000?
Instructions
(a)Record the following events in 2018.
Aug.10Determined that the account of Ann Koch for $1,000 is uncollectible.
Sept.12Determined that the account of Joe Yates for $4,000 is uncollectible.
Oct.10Received a check for $550 as payment on account from Ann Koch, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November.
Nov.15Received a check for $450 from Ann Koch as payment on her account.
(b)Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2018.
(c)What is the balance of Allowance for Doubtful Accounts at December 31, 2018?
*can i have an explanation for B and C
In: Accounting
Exercise 19-11
At the end of 2019, Concord Company has $180,300 of cumulative temporary differences that will result in reporting the following future taxable amounts.
2020 $60,400
2021 52,200
2022 38,700
2023 29,000
$180,300
Tax rates enacted as of the beginning of 2018 are: 2018 and 2019 40 %
2020 and 2021 30 %
2022 and later 25 %
Concord’s taxable income for 2019 is $321,800. Taxable income is expected in all future years.
(a) Prepare the journal entry for Concord to
record income taxes payable, deferred income taxes, and income tax
expense for 2019, assuming that there were no deferred taxes at the
end of 2018. (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.)
(b) Prepare the journal entry for Concord to
record income taxes payable, deferred income taxes, and income tax
expense for 2019, assuming that there was a balance of $23,100 in a
Deferred Tax Liability account at the end of 2018.
(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.)
In: Accounting
Delcon Incorporation is prepared to report the
following income statement for the year
2019.
Sales 1,52,00,000
Less, operating cost 1,19,00,000
EBIT 33,00,000
Less, interest 3,00,000
Earning before tax 30,00,000
Les, Tax @ 40% 12,00,000
Net income 18,00,000Prior to reporting these income statements, the
company wants to determine its annual
dividend. The company has 5,00,000 shares of stock outstanding and
its stock trades at Rs
48 per share.
a. The company had a 40% dividend payout ratio in 2018. If the
company wants to
maintain this payout ratio in 2019, what will be its per share
dividend in 2019?
b. If the company maintains this 40% payout ratio, what will be the
current yield of the
company's stock?
c. The company reported net income of Rs 1500,000 in 2018. Assume
that the number of
shares outstanding has remained constant. What was the company’s
per share dividend
in 2018?
d. As an alternative to maintain the same dividend payout ratio,
the company is
considering maintaining the same dividend per share in 2019 that it
paid in 2018. If it
chooses this policy, what will be the company's dividend payout
ratio in 2019?
e. Does the dividend policy of the organization affect the price of
the stock?
In: Finance
In your audit of Newman Company, you find that a physical inventory on December 31, 2019, showed merchandise with a cost of $399,450 was on hand at that date. You also discover the following items were all excluded from the $399,450.
1. Merchandise costing $52,310 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Newman on January 5, 2018.
2. Merchandise costing $75,730 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Newman on January 4, 2018.
3. Merchandise costing $42,890 which was shipped by Newman f.o.b. shipping point to a customer on December 29, 2017. The customer was scheduled to receive the merchandise on January 2, 2018.
4. Merchandise costing $39,580 which was shipped by Newman f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018.
5. Merchandise of $61,320 which is held by Newman on consignment. The consignor is the Max Suzuki Company.
For each of the items 1- 5, determine whether it should be Added In (A) or Ignored (ok as is) (I). For each of the above items place an A or an I beside the number below.
1. __________________ 2. __________________ 3. __________________ 4. __________________ 5. __________________
In: Accounting
The following two tables are used in all the following questions. Thus, part of the following questions involve determining exactly what you need for each question. Please assume that for GDP calculations, only two things are produced in this economy: houses (a good) and dog walking (a service). Please ignore coffee for the GDP calculations. Also, assume that 2018 is the base year for GDP calculations. The base year for the CPI is not given.
| Year | Houses Produced (millions) | Average House Price | Dogs Walked (millions) | Average Dog Walking Fee |
| 2018 | 1.00 | $200,000 | 1,000 | $25.00 |
| 2019 | 1.01 | $208,000 | 1,010 | $25.10 |
| Year | Nominal price of a cup of coffee | CPI | CPI Market Basket | Nominal interest rate on a car loan |
| 1989 | $1.70 | 180 | $28,800 | 5% |
| 1999 | $1.85 | 200 | $32,000 | 3% |
| 2009 | $1.95 | 220 | $35,200 | 2% |
| 2018 | $1.98 | 245 | $39,200 | 5% |
| 2019 | $2.00 | 250 | $40,000 | 6% |
Without making a calculation, which did you think increased more from 2018 to 2019 -- real or nominal GDP? Why?
Finally, for this and the following short-answer questions, please fully explain your answer and show all computations.
In: Economics
On January 1, 2018, Sledge had common stock of $220,000 and retained earnings of $360,000. During that year, Sledge reported sales of $230,000, cost of goods sold of $120,000, and operating expenses of $50,000.
On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $70,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $30,000 to an undervalued building (with a 10-year remaining life).
In 2017, Sledge sold inventory costing $12,500 to Percy for $25,000. Of this merchandise, Percy continued to hold $4,000 at year-end. During 2018, Sledge transferred inventory costing $15,000 to Percy for $30,000. Percy still held half of these items at year-end.
On January 1, 2017, Percy sold equipment to Sledge for $17,000. This asset originally cost $26,000 but had a January 1, 2017, book value of $11,000. At the time of transfer, the equipment's remaining life was estimated to be five years.
Percy has properly applied the equity method to the investment in Sledge.
In: Accounting
On March 1, 2017, Shamrock Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,390,000. The building was completed by October 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below: 2017 2018 2019 Contract costs incurred during the year $3,003,300 $2,179,700 $2,117,000 Estimated costs to complete the contract at 12/31 3,386,700 2,117,000 –0– Billings to Fabrik during the year 3,240,000 3,460,000 1,690,000
(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank.)
(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
In: Accounting