hhfma02.qc12.1_sh.tdxex
A stock dividend
hhfma02.qc12.2_sh.tdxex
In a small stock dividend,
hhfma02.qc12.3_sh.tdxex
Stock splits
hhfma02.qc12.4_sh.tdxex
A company's own stock that it has issued and repurchased is called
hhfma02.qc12.5_sh.tdxex
Assume that a company paid
treasury stock
per share to purchase
of its
par common as treasury stock. The purchase of
hhfma02.qc12.6_sh.tdxex
Assume that the bank requires XO, Co., to maintain at least $100,000 in Retained earnings. The $100,000 would be shown
as
hhfma02.qc12.7_sh.tdxex
The income statement for Greg's Groovy Tunes for the year ended December 31, 2010 is as follows:
(Click the icon to view the income statement.)
Greg's Groovy Tunes is most likely to earn net income of $x next year. How much is $x?
Page 1 of 3
hhfma02.qc12.7_sh.tdxex
Data Table
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Page 3 of 3
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Which of the following events would be an extraordinary loss?
hhfma02.qc12.9_sh.tdxex
What is the most widely followed statistic in business?
hhfma02.qc12.10_sh.tdxex
Earnings per share is not computed for
hhfma02.s12.1_sh.tdxex
Pool Supply has
the market value of its stock is
shares of $ par common stock outstanding.
per share.
distributes a
Requirements
1. Journalize
's distribution of the stock dividend on
. An explanation is not required.
2. What is the overall effect of the stock dividend on
's total assets?
3. What is the overall effect on total stockholders' equity?
Requirement 1.
Journalize the entry for the distribution of dividends on
.
Requirement 2.
The stock dividends have
on total assets.
Requirement 3.
The stock dividends have
on total stockholders' equity.
% stock dividend when
hhfma02.s12.2_s.tdxex
Compare and contrast the accounting for cash dividends and stock dividends.
Requirement
1. In the space provided, insert either "Cash dividends," "Stock dividends," or "Both cash dividends and stock dividends" to
complete each of the following statements:
a.
decrease Retained earnings.
b.
has (have) no effect on a liability.
c.
increase paid-in capital by the same amount that they decrease Retained earnings.
d.
decrease both total assets and total stockholders' equity, resulting in a decrease in the
size of a company.
hhfma02.s12.3_sh.tdxex
Imports recently reported the following stockholders' equity (adapted and in millions except par value per share):
(Click the icon to view the data.)
Suppose
split its common stock 2 for 1 in order to decrease the market price of its stock. The company's stock was
trading at
immediately before the split.
Requirements
1. Prepare the stockholders' equity section of
Imports' balance sheet after the stock split.
2. Were the account balances changed or unchanged after the stock split?
Requirement 1. Complete the stockholders' equity section of the balance sheet. (Use parentheses or a minus sign for numbers to
be subtracted.)
Requirement 2. The Common stock account balance was
The Paid-in capital in excess of par account balance was
The Retained earnings account balance was
.
.
.
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hhfma02.s12.3_sh.tdxex
The Other equity account was
The total stockholders' equity was
.
.
Data Table
Page 2 of 2
hhfma02.s12.4_sh.tdxex
a.
b.
Furniture, Inc., completed the following treasury stock transactions:
Purchased
shares of the company's $1 par common stock as treasury stock, paying cash of
share.
Sold
shares of the treasury stock for cash of
per share.
per
Requirements
Journalize these transactions. Explanations are not required.
1.
Show how
will report treasury stock on its December 31, 2010, balance sheet after completing the two
2.
transactions. In reporting the treasury stock, report only on the Treasury stock account. You may ignore all other accounts.
Requirement 1. Journalize the purchase of the treasury stock.
Journalize the sale of the treasury stock.
Requirement 2. Balance sheet at December 31, 2010, will report: (Use parentheses or a minus sign for numbers to be subtracted.)
Page 1 of 2
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hhfma02.s12.5_sh.tdxex
Corporation reported the following stockholders' equity:
(Click the icon to view the data.)
Requirements
Corporation's agreement with its bank lender restricts
's dividend payments for the cost of treasury stock the company
1.
holds. How much in dividends can
declare?
2. Why would a bank lender restrict a corporation's dividend payments and treasury stock purchases?
Requirement 1. The maximum amount of dividends is $
.
Requirement 2. A lender may restrict a corporation's dividend payments and treasury stock purchases in order to ensure that the
company maintains a
Data Table
of equity.
hhfma02.s12.6_s.tdxex
Consider the simple income statement and the more complex income statement.
Requirement
1. List the major parts of a complex corporate income statement for WRS Athletic Clubs, Inc., for the year ended December 31,
2011. Include all the major parts of the income statement, starting with net sales revenue and ending with net income (net
loss). You may ignore dollar amounts and earnings per share.
hhfma02.s12.7_s.tdxex
Consider a corporate income statement.
Requirements
1. How do you measure gross profit?
2. What is the title of those items that are both unusual and infrequent?
3. Which income number is the best predictor of future net income?
4. What is the "bottom line"?
5. What does EPS abbreviate?
1.
2. The title of those items that are both unusual and infrequent is
3. The best predictor of future net income is
4. The "bottom line" is
.
5. EPS abbreviates
.
.
.
hhfma02.s12.8_sh.tdxex
Corporation's accounting records include the following items, listed in no particular order, at December 31, 2012:
(Click the icon to view the data.)
Income tax of % applies to all items.
Requirement
1. Prepare
's income statement for the year ended December 31, 2012. Omit earnings per share.
(Enter losses to be subtracted with a minus sign or parentheses.)
Page 1 of 2
hhfma02.s12.8_sh.tdxex
More Info
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hhfma02.s12.9_sh.tdxex
Corporation's income statement at year ended December 31, 2012, follows.
(Click the icon to view the data.)
had
shares of common stock outstanding during 2012.
2012.
Requirement
1. Show how
reported
declared and paid preferred dividends of
data on its 2012 income statement.
(Use parentheses or a minus sign for losses. Round your answers to the nearest cent.)
Page 1 of 2
during
hhfma02.s12.9_sh.tdxex
Data Table
Income tax of
% applies to all items.
Definition
Earnings per share
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hhfma02.s12.10_s.tdxex
Wells-Carolina, Inc. has preferred stock outstanding.
Requirements
1. Give the basic equation to compute earnings per share of common stock for net income.
2. List all the income items for which Wells-Carolina must report
data.
1. Determine the basic equation to compute earnings per share of common stock for net income.
Earnings per share =
2. List all the income items for which Wells-Carolina must report EPS data.
Definition
earnings per share
hhfma02.s12.11_sh.tdxex
Corporation's income statement at year ended December 31, 2012, follows:
(Click the icon to view the data.)
In addition,
had unrealized gains of
on investments during 2012.
Requirements
's net income from the given information and show how the company could report other comprehensive income
1. Start with
on its 2012 income statement.
report earnings per share for other comprehensive income?
2. Should
Requirement 1. How will the company report other comprehensive income on its 2012 income statement?
Requirement 2.
's earnings per share
be reported for other comprehensive income.
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hhfma02.s12.11_sh.tdxex
Data Table
Income tax of
% applies to all items.
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hhfma02.s12.12_sh.tdxex
, Inc. (
) ended 2010 with retained earnings of
and declared dividends of
. Also during 2011,
got a
tax audit revealed that
paid too much income tax back in 2009.
Requirement
1. Prepare
prior-period adjustment.
. During 2011
earned net income of
tax refund from the Internal Revenue Service. A
's statement of retained earnings for the year ended December 31, 2011, to report the
hhfma02.e12.13_sh.tdxex
The stockholders' equity of
Occupational Therapy, Inc., on December 31, 2009, follows:
(Click the icon to view the data.)
On April 30, 2010, the market price of
's common stock was
per share and the company distributed a 10% stock
dividend.
Requirements
1. Journalize the distribution of the stock dividend.
2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.
Requirement 1. Journalize the distribution of the stock dividend.
Requirement 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.
Page 1 of 2
hhfma02.e12.13_sh.tdxex
Data Table
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hhfma02.e12.14_sh.tdxex
Schools, Inc., is authorized to issue 100,000 shares of $1 par common stock. The company issued
When the market price of common stock was
per share,
distributed a 10% stock dividend. Later,
paid a
per share cash dividend.
Requirements
1. Journalize the distribution of the stock dividend.
2. Journalize both the declaration and payment of the cash dividend.
Requirement 1. Journalize the distribution of the stock dividend.
Requirement 2. Journalize the declaration of the cash dividend.
Journalize the payment of the cash dividend.
Page 1 of 2
at
per share.
declared and
hhfma02.e12.14_sh.tdxex
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hhfma02.e12.15_sh.tdxex
Many types of transactions may affect stockholders' equity.
Requirement
1. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.
a.
b.
c.
d.
A 10% stock dividend. Before the dividend,
shares of $1 par common stock were outstanding; market value was
at the time of the dividend.
A 2-for-1 stock split. Prior to the split,
shares of
par common stock were outstanding.
Purchase of
shares of treasury stock (par value at $0.50) at
per share.
Sale of
shares of $.50 par treasury stock for
per share. Cost of the treasury stock was
per share.
(For transactions with no effect, make sure to enter "0" in the amount column.)
hhfma02.e12.16_sh.tdxex
Golf Club, Corp., had the following stockholders' equity at December 31, 2011:
(Click the icon to view the table.)
On June 30, 2012
split its common stock 2 for 1.
Requirements
1. Make the memorandum entry to record the stock split.
2. Prepare the stockholders' equity section of the balance sheet immediately after the split.
Requirement 1. Make the memorandum entry:
June
Called in the outstanding $
each old share.
par common stock and distributed
Requirement 2. Complete the stockholders' equity section of the balance sheet.
Page 1 of 2
shares of $
par common stock for
hhfma02.e12.16_sh.tdxex
Data Table
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hhfma02.e12.17_sh.tdxex
Treasury stock transactions for
Driving School, Inc., follow:
4 Issued
shares of $1 par common stock at
per share
22 Purchased
shares of treasury stock at
per share
22 Sold
shares of treasury stock at
per share
Requirement
1. Journalize the transactions.
Requirement 1. Journalize the transactions in the order they appear in the table.
Page 1 of 2
hhfma02.e12.17_sh.tdxex
Page 2 of 2
hhfma02.e12.18_sh.tdxex
Amusements Corporation had the following stockholders' equity on November 30:
(Click the icon to view the data.)
On December 30,
purchased
shares of treasury stock at
per share.
Requirements
1. Journalize the purchase of the treasury stock.
2. Prepare the stockholders' equity section of the balance sheet at December 31.
3. How many shares of common stock are outstanding after the purchase of treasury stock?
Requirement 1. Journalize the purchase of the treasury stock.
Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31.
Page 1 of 3
hhfma02.e12.18_sh.tdxex
Requirement 3. How many shares of common stock are outstanding after the purchase of treasury stock?
shares are outstanding.
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Data Table
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hhfma02.e12.19_sh.tdxex
The agreement under which
Printers issued its long-term debt requires the restriction of $
of the company's
retained earnings balance. Total retained earnings is
, and common stock, no-par, has a balance of
.
Requirements
's balance sheet, assuming the following:
1. Report stockholders' equity on
discloses the restrictions in a note. Write the note.
a.
b.
appropriates retained earnings in the amount of the restriction and includes no note in its statements.
Requirement 1
a. Report stockholders' equity on
's balance sheet, assuming that
discloses the restrictions in a note.
Complete the note that would be found in the company's financial statements.
Note X - The company's
in the amount of $
b. Report stockholders' equity on
's balance sheet, assuming that
the restriction and includes no note in its statements.
Page 1 of 2
.
appropriates retained earnings in the amount of
hhfma02.e12.19_sh.tdxex
Page 2 of 2
hhfma02.e12.20_sh.tdxex
The
Photographic Supplies, Inc., accounting records include the following for 2012:
(Click the icon to view the accounting records.)
Requirement
1. Prepare
losses.)
's multi-step income statement for 2012. Omit earnings per share. (Use parentheses or a minus sign to report net
Page 1 of 2
hhfma02.e12.20_sh.tdxex
Data Table
Page 2 of 2
hhfma02.e12.21_sh.tdxex
, Corp., earned net income of
for 2011.
's books include the following figures:
(Click to view the data.)
Requirement
1. Compute
's
for the year. (Round the EPS to two decimal places.)
Corp.'s EPS for 2011 is $
Data Table
Definition
earnings per share
.
hhfma02.e12.22_sh.tdxex
Academy Surplus had
shares of common stock and
shares of %, $ par preferred stock outstanding through
December 31, 2010. Income from continuing operations of 2010 was
, and loss on discontinued operations (net of income
tax savings) was $
.
also had an extraordinary gain (net of tax) of $
.
Requirement
1. Compute
EPS amounts for 2010, starting with income from continuing operations.
(Use parentheses or a minus sign for losses. Round your answers to the nearest cent.)
hhfma02.e12.23_sh.tdxex
Times Express Company had retained earnings of
for 2011:
million at December 31, 2010. The company reported these figures
(Click the icon to view the data.)
Requirement
1. Beginning with net income, prepare a combined income statement and retained earnings for
Company for the year ended December 31, 2011.
Data Table
Times Express
hhfma02.e12.24_sh.tdxex
Lou Bakery, Inc., reported a prior-period adjustment in 2010. An accounting error caused net income of prior years to be
overstated by
. Retained earnings at December 31, 2009, as previously reported, stood at
. Net income for 2010 was
, and dividends were
.
Requirement
1. Prepare the company's statement of retained earnings for the year ended December 31, 2010.
(Use a minus sign or parentheses when subtracting numbers.)
hhfma02.e12.25_sh.tdxex
During 2011,
, Corp., earned income from continuing operations of
. The company also sold a segment of
the business (discontinued operations) at a loss of
and had an extraordinary gain of
. At year-end,
had an unrealized loss on investments of
.
Requirements
1. Compute
's net income and comprehensive income for 2011. All amounts are net of income taxes.
2. What final
figure should
report for 2011? Name the item and show its amount.
shares of common stock (and no preferred stock) outstanding.
1.
's net income for 2011 is $
.
's comprehensive income for 2011 is $
2. What final EPS figure should
More Info
earnings per share
had
.
report? Select the item and enter the EPS. (Round the EPS to two decimal places.)
hhfma02.p12.26a_sh.tdxex
Manufacturing, Co., completed the following transactions during 2009:
(Click the icon to view the transactions.)
Requirement
1. Record the transactions in
cells blank.)
general journal. (For memorandum entries, only enter the description and leave the amount
Record the cash dividends declared on January 16.
Record the payment of the cash dividends.
Record the stock split.
Page 1 of 4
hhfma02.p12.26a_sh.tdxex
Record the stock dividend on July 30.
Record the purchase of treasury stock.
Record the sale of treasury stock on the 8th.
Page 2 of 4
hhfma02.p12.26a_sh.tdxex
Record the sale of treasury stock on the 30th.
Page 3 of 4
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Data Table
Jan 16 Declared a cash dividend on the %,
par preferred stock (
shares outstanding). Declared a
per share dividend on the
shares of common stock outstanding. The date of record is January 31, and
the payment due date is February 15.
Feb 15 Paid the cash dividends
Jun 10 Split common stock 2 for 1. Before the split,
had
shares of
par common stock outstanding.
Jul 30 Distributed a
stock dividend on the common stock. The market value
of the common stock was
per share.
Oct 26 Purchased
shares of treasury stock at
per share
Nov 8 Sold
shares of treasury stock for
per share
Nov 30 Sold
shares of treasury stock for
per share
Page 4 of 4
hhfma02.p12.27a_sh.tdxex
The balance sheet of
Foods, at December 31, 2011, reported
shares of no-par common stock authorized, with
shares issued and a Common stock balance of
. Retained earnings had a balance of
. During 2012, the
company completed the following selected transactions:
(Click the icon to view the transactions.)
Requirements
1. Record the transactions in the general journal. Explanations are not required.
Foods' balance sheet at December 31, 2012.
2. Prepare the stockholders' equity section of
Requirement 1. Record the transactions in the general journal. Explanations are not required.
Record the purchase of treasury stock.
Record the stock dividend.
Record the entry to close net income to Retained earnings.
Page 1 of 2
hhfma02.p12.27a_sh.tdxex
Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minus
sign when subtracting numbers.)
Data Table
Mar 15 Purchased
shares of treasury stock at
per share.
Apr 30 Distributed a
stock dividend on the outstanding shares of common stock. The
market value of common stock was
per share.
Dec 31 Earned net income of
during the year. Closed net income to Retained
earnings.
Page 2 of 2
hhfma02.p12.28a_sh.tdxex
The balance sheet of
Management Consulting, Inc., at December 31, 2011, reported the following stockholders' equity:
(Click the icon to view the stockholders' equity section of the balance sheet.)
During 2012,
completed the following selected transactions.
(Click the icon to view the transactions.)
Requirements
1. Record the transactions in the general journal. (Round your answers to the nearest whole dollar.)
2. Prepare a retained earnings statement for the year ended December 31, 2012.
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2012.
Requirement 1.
February 6 - Distributed a
share.
July 29 - Purchased
stock dividend on the common stock. The market value of
shares of treasury stock at
per share.
Page 1 of 4
common stock was
per
hhfma02.p12.28a_sh.tdxex
November 27 - Declared a
December 31 Closed the
per share cash dividend on the
net income to Retained earnings.
Requirement 2.
Prepare the statement of retained earnings at December 31, 2012.
Page 2 of 4
shares of common stock outstanding.
hhfma02.p12.28a_sh.tdxex
Requirement 3.
Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minus sign for
numbers to be subtracted.)
Page 3 of 4
hhfma02.p12.28a_sh.tdxex
Data Table
More Info
Feb 6
Distributed a
stock dividend on the common stock. The market value of
stock was
per share.
July 29 Purchased
shares of treasury stock at
per share.
Nov 27 Declared a
per share cash dividend on the
shares of common stock
outstanding. The date of record is December 17, and the payment date is January 7,
2013.
Dec 31 Closed the
net income to Retained earnings.
Page 4 of 4
hhfma02.p12.29a_sh.tdxex
The capital structure of
, Inc., at December 31, 2010, included
shares of
preferred stock and
shares
of common stock. Common stock outstanding during 2011 totaled
shares. Income from continuing operations during 2011
was
The company discontinued a segment of the business at a gain of
, and also had an extraordinary gain of
The
board of directors restricts $
of retained earnings for contingencies. Retained earnings at December
31, 2010, was
and the company declared preferred dividends of
during 2011.
Requirements
's earnings per share for 2011. Start with income from continuing operations. All income and loss
1. Compute
amounts are net of income tax.
's retained earnings restriction.
2. Show two ways of reporting
Requirement 1.
Compute
nearest cent. )
's earnings per share for 2011. Start with income from continuing operations. (Round your answers to the
Requirement 2.
Show two ways of reporting
's retained earnings restriction.
Complete the note that would be found in the company's financial statements assuming that
a note.
Note X - The company's
Report retained earnings on
in the amount of $
's balance sheet, assuming that
Page 1 of 2
discloses the restrictions in
.
appropriates retained earnings in the amount of
hhfma02.p12.29a_sh.tdxex
the restriction and includes no note in its statements.
Page 2 of 2
hhfma02.p12.30a_sh.tdxex
The following information was taken from the records of
Motorsports, Inc., at September 30, 2010:
(Click the icon to view the financial information.)
Requirement
1. Prepare a multi-step income statement for
earnings per share.
Motorsports for the fiscal year ended September 30, 2010. Include
(Round your answers to the nearest cent.)
Page 1 of 2
hhfma02.p12.30a_sh.tdxex
Data Table
Page 2 of 2
hhfma02.p12.31a_sh.tdxex
, accountant for
Finance, was injured in a boating accident. Another employee prepared the
accompanying income statement for the year ended December 31, 2010.
(Click the icon to view the income statement.)
(Click the icon to view the additional information.)
Requirement
1. Prepare a corrected combined statement of income and retained earnings for 2010. Prepare the income statement in
single-step format.
Begin by preparing the income statement portion, then retained earnings, and finally calculate the earnings per share.
Page 1 of 4
hhfma02.p12.31a_sh.tdxex
(Round your answers to the nearest cent.)
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hhfma02.p12.31a_sh.tdxex
Data Table
More Info
Page 3 of 4
hhfma02.p12.31a_sh.tdxex
The individual amounts listed on the income statement are correct. However some accounts are reported incorrectly, and two items don't belong on the
income statement at all. Also, income tax has not been applied to all appropriate figures. The income tax rate on discontinued operations was
.
Finance issued
shares of common stock in 2010 and held
shares as treasury stock during 2010. Retained earnings at
December 31, 2009 was
.
Page 4 of 4
hhfma02.p12.32b_sh.tdxex
Manufacturing, Co., completed the following transactions during 2009:
(Click the icon to view the transactions.)
Requirement
1. Record the transactions in the general journal. (For memorandum entries, only enter the description and leave the amount cells
blank.)
Record the cash dividends declared on January 16.
Record the payment of the cash dividends.
Record the stock split.
Page 1 of 4
hhfma02.p12.32b_sh.tdxex
Record the stock dividend on July 30.
Record the purchase of treasury stock.
Record the sale of treasury stock on the 8th.
Page 2 of 4
hhfma02.p12.32b_sh.tdxex
Record the sale of treasury stock on the 30th.
Page 3 of 4
hhfma02.p12.32b_sh.tdxex
Data Table
Jan 16 Declared a cash dividend on the %,
par preferred stock (
shares
outstanding). Declared a
per share dividend on the
shares of
common stock outstanding. The date of record is January 31, and the
payment due date is February 15.
Feb 15 Paid the cash dividends
Jun 10 Split common stock 2 for 1. Before the split,
had
shares
of
par common stock outstanding.
Jul 30 Distributed a
stock dividend on the common stock. The market value
of the common stock was
per share.
Oct 26 Purchased
shares of treasury stock at
per share
Nov 8 Sold
shares of treasury stock for
per share
Nov 30 Sold
shares of treasury stock for
per share
Page 4 of 4
hhfma02.p12.33b_sh.tdxex
The balance sheet of
Foods, at December 31, 2011, reported
shares of no-par common stock authorized,
with
shares issued and a Common stock balance of
. Retained earnings had a balance of
. During 2012,
the company completed the following selected transactions:
(Click the icon to view the transactions.)
Requirements
1. Record the transactions in the general journal. Explanations are not required.
Foods' balance sheet at December 31, 2012.
2. Prepare the stockholders' equity section of
Requirement 1. Record the transactions in the general journal. Explanations are not required.
Record the purchase of treasury stock.
Data Table
Mar 15 Purchased
shares of treasury stock at
per share.
Apr 30 Distributed a
stock dividend on the outstanding shares of common stock. The
market value of common stock was
per share.
Dec 31 Earned net income of
during the year. Closed net income to Retained
earnings.
hhfma02.p12.34b_sh.tdxex
The balance sheet of
Management Consulting, Inc., at December 31, 2011, reported the following stockholders' equity:
(Click the icon to view the stockholders' equity section of the balance sheet.)
During 2012,
Management Consulting completed the following selected transactions.
(Click the icon to view the transactions.)
Requirements
1. Record the transactions in the general journal.
2. Prepare the retained earnings statement for the year ended December 31, 2012.
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2012.
Requirement 1.
February 6 - Distributed a
share.
July 29 - Purchased
stock dividend on the common stock. The market value of
shares of treasury stock at
per share.
Page 1 of 4
common stock was
per
hhfma02.p12.34b_sh.tdxex
November 27 - Declared a
December 31 Closed the
per share cash dividend on the
net income to Retained earnings.
Requirement 2.
Prepare the statement of retained earnings at December 31, 2012.
Page 2 of 4
shares of common stock outstanding.
hhfma02.p12.34b_sh.tdxex
Requirement 3.
Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minus sign for
numbers to be subtracted.)
Page 3 of 4
hhfma02.p12.34b_sh.tdxex
Data Table
More Info
Feb 6
Distributed a
stock dividend on the common stock. The market value of
stock was
per share.
July 29 Purchased
shares of treasury stock at
per share.
Nov 27 Declared a
per share cash dividend on the
shares of common stock
outstanding. The date of record is December 17, and the payment date is January 7,
2013.
Dec 31 Closed the
net income to Retained earnings.
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hhfma02.p12.35b_sh.tdxex
The capital structure of
, Inc., at December 31, 2010, included
shares of
preferred stock and
shares of common stock. Common shares outstanding during 2011 were
. Income from continuing operations during 2011
was
The company discontinued a segment of the business at a gain of
, and also had an extraordinary gain of
board of directors restricts $
of retained earnings for contingencies. Retained earnings at December
31, 2010, was
and the company declared cash dividends of
during 2011.
Requirements
's earnings per share for 2011. Start with income from continuing operations. Income and loss
1. Compute
amounts are net of income tax.
's retained earnings restriction.
2. Show two ways of reporting
Requirement 1.
Compute
nearest cent. )
's earnings per share for 2011. Start with income from continuing operations. (Round your answers to the
Requirement 2.
Show two ways of reporting
's retained earnings restriction.
Complete the note that would be found in the company's financial statements assuming that
in a note.
Note X - The company's
Report retained earnings on
in the amount of $
's balance sheet, assuming that
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discloses the restrictions
.
appropriates retained earnings in the amount
hhfma02.p12.35b_sh.tdxex
of the restriction and includes no note in its statements.
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hhfma02.p12.36b_sh.tdxex
The following information was taken from the records of
Motorsports, Inc., at September 30, 2010:
(Click the icon to view the financial information.)
Requirement
1. Prepare a multi-step income statement for
earnings per share.
Motorsports for the fiscal year ended September 30, 2010. Include
(Round your answers to the nearest cent.)
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hhfma02.p12.36b_sh.tdxex
Data Table
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hhfma02.p12.37b_sh.tdxex
, accountant for
Finance, was injured in a boating accident. Another employee prepared the following
income statement for the year ended December 31, 2010:
(Click the icon to view the income statement.)
(Click the icon to view the additional information.)
Requirement
1. Prepare a corrected combined statement of income and retained earnings for the fiscal year ended December 31, 2010.
Prepare the income statement in single-step format.
Begin by preparing the income statement portion, then retained earnings, and finally calculate the earnings per share.
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hhfma02.p12.37b_sh.tdxex
(Round your answers to the nearest cent.)
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hhfma02.p12.37b_sh.tdxex
Data Table
More Info
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hhfma02.p12.37b_sh.tdxex
The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and two items do not belong on the
income statement at all. Also, income tax has not been applied to all appropriate figures. The income tax rate on discontinued operations was
.
issued
shares of common stock in 2010 and held
shares as treasury stock during 2010. Retained earnings at December 31,
2009 was
.
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hhfma02.e12.38_sh.tdxex
On
15,
Lawn Service declares and distributes a % stock dividend to all common shareholders of record on
15
when the market price per common share is .
has
shares of common stock outstanding on the date of record.
Requirements
1. Is this a small or large stock dividend?
2. Journalize the entries related to the dividend.
Requirement 1. Is this a small or large stock dividend?
This is a
Requirement 2. Journalize the entries related to the dividends.
Journalize the distribution of the stock dividend.