Home / Questions / Mountip Inc. was incorporated under provincial legislation with a December 31 year-end. Th
Mountip Inc. was incorporated under provincial legislation with a December 31 year-end. The company has a single class of shares. As at December 31, 2011, it had 150,000 shares issued and outstanding. These shares had a book value of $5,700,000 on the balance sheet. During 2012, Mountip repurchased 5% of the issued shares from one of the minority shareholders at a cost of $48 per share. The company held these in treasury and later found a buyer for half of these shares at $52. The other half were sold at $46 to another investor.
Requirement:
Record the share transactions using the alternative two-transaction method for treasury stock.
7) Dunst Company had the following shareholders' equity account balances on December 31, 2011:
Common stock, 150,000 authorized, 40,000 issued $880,000
Contributed surplus on repurchases and resales45,000
Treasury shares, 20,000 shares(800,000)
Retained earnings500,000
Total shareholder's equity$625,000
During 2012, the following transactions occurred:
i. May 1: Dunst resold 1,600 of the treasury shares at $52 per share.
ii. Dec. 30: The board of directors declared cash dividends of $2 per share.
iii. Dec. 31: Net income for the year ended December 31, 2012 was $150,000.
Dunst uses the single transaction method for treasury shares.
Requirements:
a. Record the journal entries for the transactions in 2012 and make all the necessary year-end entries relating to shareholders' equity accounts.
b. Prepare the presentation of the shareholders' equity section of Dunst's balance sheet as at December 31, 2012.
Dec 11 2019 Read more Less More
Which of the following is included in the set of environmental contingency factors identified in path-goal theory?[A]Locus of control [B]Perceived ability [C]Relationsh...
Jan 10 2018Public goods have two distinct features: nonexclusiveness and nonrivalry.2. Government produces higher education in the form of state universities and commun...
Feb 11 20201. A silicon diode exhibits a capacitance of 200 pF at zero bias. If it is in parallel with a 60-pF capacitor and 200-µ,H inductor, calculate the range of resonant frequ...
Jul 29 2020Consider the following project represented by the table of activities and predecessors. Illustrate how this project can be crashed stagewise. What is the minimum time and...
Aug 22 2020As you reflect on Meilaender’s readings, what is his distinction between procreation and reproduction, as well as that of being begotten versus being made? Do you agree w...
Jul 07 2020Explain the difference between managerial coordination and market coordination. >
May 14 2020When the current source is turned off in the circuit of Figure P3−50 the voltage source delivers 25 W to the load. How much power does it deliver to the load when both so...
Jul 28 2020A row of 10 parallel pipes that are 5 m long and have an outer diameter of 6 cm are used to transport steam at 145°C through the concrete floor (k = 0.75 W/m·K) of a 10-m...
Jul 21 2020How do infants construct their knowledge about the properties of objects? Is this understanding innate or does it develop via interaction with the world? Critically evalu...
Mar 14 20201. Using what you learned in Chapter 9 about the linkage between strategy and HR policy/practices, suggest the difficulties that HR faced after the Compaq acquisition. 2....
May 07 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
