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Prepare an income statement for Spanish Fort Ex. 1 In 2014, Spanish Fort Corporation had net sales of $500,000 and cost of goods sold of $300,000. Operating expenses were $93,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7,000 in 2014, and its average common stockholders' equity during the year was $500,000. Instructions (a) Prepare an income statement for Sp ...

Other / Other 06 Apr 2016

Juno Corporation's stockholders' equity section 1 Juno Corporation's stockholders' equity section at December 31, 2013 appears below: Stockholders' equity Paid-in capital Common stock, $10 par, 60,000 outstanding $600,000 Paid-in capital in excess of par 150,000 Total paid-in capital $750,000 Retained earnings 150,000 Total stockholders' equity $900,000 On June 30, 2014, the board of directors of Juno Cor ...

Other / Other 06 Apr 2016

Prepare the necessary entries for the declaration 1 The following information is available for Westglow Corporation for the year ended December 31, 2014: Corrected overstatement of 2013 depreciation expense $ 15,000 Cost of goods sold 700,000 Declared cash dividends 50,000 Operating expenses 170,000 Other expenses and losses 40,000 Other revenues and gains 50,000 Sales revenue 1,200,000 Tax rate 40% Instructions P ...

Other / Other 06 Apr 2016

Journalize the issuance of stock Ex. 1 On January 1, 2014, Raleish Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2014, payable on January 15, 2015. The market value of R ...

Other / Other 06 Apr 2016

Why must a corporation have sufficient retained earnings 1 Why must a corporation have sufficient retained earnings before it may declare cash dividends? 2 Three dates are important in connection with cash dividends. Identify these dates, and explain their significance to the corporation and its stockholders Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Managem ...

Other / Other 06 Apr 2016

Compute earnings per share of common stock Ex. 1 Santos Corporation gathered the following information for the fiscal year ended December 31, 2014: Sales $1,500,000 Operating expenses 160,000 Cost of goods sold 960,000 Loss on disposal of equipment 40,000 Santos Corporation is subject to a 30% income tax rate. Instructions Prepare a partial income statement, beginning with income from operations. Ex. 2 At December 31, ...

Other / Other 06 Apr 2016

Is it ethical to discontinue the cash dividend 1 (Ethics) Jason Gorni, the president and CEO of Better Earth, Inc., a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Immediately prior to his hospitalization, Better Earth had experienced a sharp decline in its stock price, and trading activity became almost nonexistent. The primary reason for this was concern expressed in the media over a ne ...

Other / Other 06 Apr 2016

Prepare a 2014 income statement for Shanta Corporation Ex. 1 The following information is available for Rubio Corporation for the year ended December 31, 2014: Sales $900,000; Other revenues and gains $72,000; Operating expenses $110,000; Cost of goods sold $520,000; Other expenses and losses $32,000; Preferred stock dividends $30,000. The company's tax rate was 20%, and it had 40,000 shares outstanding during the entire year. Instruc ...

Other / Other 06 Apr 2016

Compute the return on common stockholders’ equity 1 The balance in retained earnings on January 1, 2014, for Hotel Plaza Inc., was $575,000. During the year, the corporation paid cash dividends of $70,000 and distributed a stock dividend of $15,000. In addition, the company determined that it had overstated its depreciation expense in prior years by $50,000. Net income for 2014 was $120,000. Instructions Prepare the retained ...

Other / Other 06 Apr 2016

A large stock dividend and stock split can frequently have the same effect 1 The ultimate effect of incurring an expense is to reduce stockholders' equity. The declaration of a cash dividend also reduces stockholders' equity. Explain the difference between an expense and a cash dividend and explain why they have the same effect on stockholders' equity. 2 A large stock dividend and stock split can frequently have the same effect on th ...

Other / Other 06 Apr 2016