On January 1, 2014, Hopkins Corporation had an unlimited number of common shares authorized, and 120,000 of
Question:
1. Issued 60,000 common shares at $15 per share on July 1.
2. Declared a 3-for-2 stock split on September 30 when the fair value was $19 per share.
3. Declared a 5% stock dividend on December 9 to common shareholders of record at December 30, distributable on January 16, 2015. At the declaration date, the fair value of the common shares was $22 per share.
4. Earned profit of $390,000 for the year.
5. Loss on equity investments reported as other comprehensive income was $48,000 before income tax. The company's income tax rate is 35%.
Instructions
(a) Prepare a statement of comprehensive income starting with profit.
(b) Prepare a statement of changes in shareholders' equity.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Step by Step Answer:
a Journal entries not required July 1 Cash 60000 15 900000 Common Shares 900000 Sep 30 Memo entry 3 ...View the full answer
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Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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