Jones Inc. has common stock of $3,000,000, additional paid-in capital of $200,000, and a retained earnings...
Jones Inc. has common stock of $3,000,000, additional paid-in capital of $200,000, and a retained earnings deficit of $1,440,000. As part of a quasi-reorganization, Jones writes down its assets by $800,000. To eliminate its deficit, Jones must reduce its common stock account by
$1,240,000.
$1,440,000.
$2,040,000.
$2,240,000.
Homework Answers
To eliminate the deficit caused due to "write down of assets" by $800,000, Jones must reduce its common stock Account by $2,040,000 i.e $800,000+$1,440,000 - $200,000)
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Jones Inc. has common stock of $3,000,000, additional paid-in
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I would just like to know if i'm correct before submitting. Problem 2-P15.14 Please solve this...
I would just like to know if i'm correct before submitting.
Problem 2-P15.14 Please solve this problem below. Quasi-Reorganization: The Hassani Corporation has the following balance sheet: Current assets Noncurrent assets $500,000 $4,000,000 Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liabilites & Equity $400,000 $2,800,000 $2,500,000 -1,200,000 $4,500,000 Total assets $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To...
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E13.15
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P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent...
P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent assets .............. $ 500,000 4,000,000 ........ Current liabilities....... Long-term liabilities .... Common stock. ....... Retained earnings ....... Total liabilities and equity.... $ 400,000 2,800,000 2,500,000 (1,200,000) $4,500,000 Total assets ....... $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not ad- equately reflect the reduced earning power of the assets. To give its balance sheet a...
Given the following information: Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional...
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If a firm has retained earnings of $23 million, a common shares account of $275 million, and additional paid-in capital...
If a firm has retained earnings of $23 million, a common shares account of $275 million, and additional paid-in capital of $100 million, determine the effect and calculate the amount of change in response to a 20 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Leave no cells blank – be certain to enter "O" wherever required. Do not round intermediate calculations and round your...
Distinguishing Between Common Stock and Additional Paid-in Capital Following is the stockholders' equity section from the...
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A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The b...
A new CEO was hired to revive the floundering Champion Chemical
Corporation. The company had endured operating losses for several
years, but confidence was emerging that better times were ahead.
The board of directors and shareholders approved a quasi
reorganization for the corporation. The reorganization included
devaluing inventory for obsolescence by $124 million and increasing
land by $5 million. Immediately prior to the restatement, at
December 31, 2018, Champion Chemical Corporation’s balance sheet
appeared as follows (in condensed form):
3....
ANSWER: (E) Common stock, par value. 10 Additional paid in capital. 150 retained earnings....
ANSWER:
(E)
Common stock, par value. 10
Additional paid in capital. 150
retained earnings. 260
treasury stock. 50
accumulated other comprehensive income. 70
investment in softcloud. 350
(R)
property, plant and equimpent. 600
favorable lease agreement 150
goodwill. 500
inventories. 50
long term debt. 350
investment in softcloud. 850
QUESTION:
How do you get the 350 & 850 from "investment in
softcloud"?
what is the steps and what does it mean?...
I would just like to know if i'm correct before submitting.
Problem 2-P15.14 Please solve this problem below. Quasi-Reorganization: The Hassani Corporation has the following balance sheet: Current assets Noncurrent assets $500,000 $4,000,000 Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liabilites & Equity $400,000 $2,800,000 $2,500,000 -1,200,000 $4,500,000 Total assets $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To...
E13.15
Paid-in Capital Capital Stock Additional Retained Earnings Account Other E13.15 (LO 3) Financial Statement The following accounts appear in the ledger of Horner Inc. after the books are closed at December 31, 2020. $ 300,000 1,230,000 Common Stock, no par, S1 stated value, 400,000 shares authorized; 300,000 shares issued Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock, $5 par value, 8%, 40,000 shares authorized; 30,000 shares issued Retained Earnings Treasury Stock (10,000 common shares) Paid-in Capital in...
P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent assets .............. $ 500,000 4,000,000 ........ Current liabilities....... Long-term liabilities .... Common stock. ....... Retained earnings ....... Total liabilities and equity.... $ 400,000 2,800,000 2,500,000 (1,200,000) $4,500,000 Total assets ....... $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not ad- equately reflect the reduced earning power of the assets. To give its balance sheet a...
Given the following information: Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional information: Corporate tax rate Dividend, preferred Dividend, expected common Price, preferred Growth rate Bond yield Flotation cost, preferred Price, common 35% $ 10.00 $ 5.5e $106.ee 103 $ 6.50 $89.00 Calculate the weighted average cost of capital for Digital Processing Inc. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost Debt Preferred stock Common equity...
If a firm has retained earnings of $23 million, a common shares account of $275 million, and additional paid-in capital of $100 million, determine the effect and calculate the amount of change in response to a 20 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Leave no cells blank – be certain to enter "O" wherever required. Do not round intermediate calculations and round your...
Distinguishing Between Common Stock and Additional Paid-in Capital Following is the stockholders' equity section from the Cisco Systems Inc. balance sheet for the third quarter of fiscal 2019. Shareholders' Equity (in millions, except par value) April 27, 2019 Preferred stock, no par value: 5 shares authorized; none issued and outstanding Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,313 shares issued and outstanding 40,577 Retained earnings (Accumulated deficit) (2,877) Accumulated other comprehensive income (loss) (896) Total...
A new CEO was hired to revive the floundering Champion Chemical
Corporation. The company had endured operating losses for several
years, but confidence was emerging that better times were ahead.
The board of directors and shareholders approved a quasi
reorganization for the corporation. The reorganization included
devaluing inventory for obsolescence by $124 million and increasing
land by $5 million. Immediately prior to the restatement, at
December 31, 2018, Champion Chemical Corporation’s balance sheet
appeared as follows (in condensed form):
3....
ANSWER:
(E)
Common stock, par value. 10
Additional paid in capital. 150
retained earnings. 260
treasury stock. 50
accumulated other comprehensive income. 70
investment in softcloud. 350
(R)
property, plant and equimpent. 600
favorable lease agreement 150
goodwill. 500
inventories. 50
long term debt. 350
investment in softcloud. 850
QUESTION:
How do you get the 350 & 850 from "investment in
softcloud"?
what is the steps and what does it mean?...
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