Question 10 On February 7, 2021, Sandhill Corp. had a balance of $309,960 in its Common Shares account and the total number of shares issued was 24,600. On February 8, 2021, Sandhill paid $10,000 to reacquire 1,000 shares. On December 22, 2021, the company paid $31,000 to reacquire 2,000 shares. (a) Determine the average per share amount on February 7 and December 22, 2021. (Round answers to 2 decimal places, e.g. 52.76.) Average per share amount on February 7, 2021 $ Average per share amount on December 22, 2021 Question 11 On July 9, 2021, Pharoah Enterprises Inc. discovered it had recorded the $78,000 purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $596,500 at its previous year end, December 31, 2020. During 2021, Pharoah had profit of $201,000 and it declared and paid cash dividends of $225,000. Pharoah has a 25% income tax rate. (a) Prepare the journal entry to correct the error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Retained Earnings Land (To record correction of error.) Question 12 Bramble Limited reported profit of $428,340 for its November 30, 2021, year end. Cash dividends of $81,900 on the common shares and $67,900 or the noncumulative preferred shares were declared and paid during the year. The following information is available regarding Bramble's common shares: Dec. 1, 2020 The opening number of common shares was 59,000. Feb. 28, 2021 Sold 8,000 common shares for $136,000 cash. May 31, 2021 Reacquired 4,000 common shares for $60,000 cash. Nov. 1, 2021 Issued 12,000 common shares in exchange for land with a fair value of $260,000. (b) * Your answer is incorrect. Try again. Calculate the weighted average number of common shares for the year. Weighted average number of shares 65333 Question 13 On December 31, 2020, Sheridan Corporation had the following shareholders' equity accounts: SHERIDAN CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders' equity Common shares (unlimited number of shares authorized, 91,000 issued) Retained earnings Total shareholders' equity $1,149,000 550,000 $1,699,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. July 1 Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $12. Dec. 15 Declared a 15% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $8; on December 30, $11; and on January 15, $10. 31 Determined that profit before income tax for the year was $462,000. The company has a 35% income tax rate. (a) Your answer is partially correct. Try again. Journalize the transactions and closing entries for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit Jan. 15 ECash Dividends - Common 91000 91000 Dividends Payable (To record declaration of cash dividend.) M Jan. 31 No Entry No Entry Feb. 15 Dividends Payable 91000 Cash 91000 (To record payment of dividend.) Memo: 3-for-2 stock split increases the number of shares to July 1x no entry Dec. 15 Retained Earnings Stock Dividends Distributa (To record declaration of stock dividend.) Dec. 30 No Entry No Entry 0 Dec. 30 V No Entry 0 No Entry X Dec. 31 Retained Earnings 91000 x Stock Dividends 91000 (To close Income Summary.) X Dec. 31 v Income Summary 300300 X Retained Earnings 300300 (To close dividends to retained earnings.) Question 14 The ledger of Blossom Corporation at November 30, 2021, contains the following summary data: Cash dividends-common $71,000 Operating expenses $1,122,000 Cash dividends-preferred Other comprehensive income-loss on 25,000 92,000 equity investments (before income tax) Common shares 326,000 Rent revenue 60,000 Cost of goods sold 7,400,000 Preferred shares ($5 noncumulative) 402,000 Depreciation expense 362,000 Retained earnings, December 1, 2020 753,000 Sales 9,032,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $19,400 befo income tax. The division was sold at a loss of $81,000 before income tax. 3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2020, with no changes during the year. (a) Prepare a multiple-step income statement for the year. BLOSSOM CORPORATION Income Statement Earnings per share $ The ledger of Crane Limited at October 31, 2021, contains the following summary data: Cash dividends-common Common shares Depreciation expense Service revenue Operating expenses Interest expense Retained earnings, November 1, 2020 $117,000 642,000 89,000 1,463,000 923,000 52,000 567,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. On March 19, 2021, Crane discovered an error made in the previous fiscal year. A $53,000 payment of a note payable had been recorded as interest expense. 3. On April 10, 2021, common shares costing $73,000 were reacquired for $97,000. This is the first time the company has reacquired common shares. (a) Prepare a journal entry to correct the prior period error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 19, 2021 (To record correction of error.) Question 10 On February 7, 2021, Sandhill Corp. had a balance of $309,960 in its Common Shares account and the total number of shares issued was 24,600. On February 8, 2021, Sandhill paid $10,000 to reacquire 1,000 shares. On December 22, 2021, the company paid $31,000 to reacquire 2,000 shares. (a) Determine the average per share amount on February 7 and December 22, 2021. (Round answers to 2 decimal places, e.g. 52.76.) Average per share amount on February 7, 2021 $ Average per share amount on December 22, 2021 Question 11 On July 9, 2021, Pharoah Enterprises Inc. discovered it had recorded the $78,000 purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $596,500 at its previous year end, December 31, 2020. During 2021, Pharoah had profit of $201,000 and it declared and paid cash dividends of $225,000. Pharoah has a 25% income tax rate. (a) Prepare the journal entry to correct the error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Retained Earnings Land (To record correction of error.) Question 12 Bramble Limited reported profit of $428,340 for its November 30, 2021, year end. Cash dividends of $81,900 on the common shares and $67,900 or the noncumulative preferred shares were declared and paid during the year. The following information is available regarding Bramble's common shares: Dec. 1, 2020 The opening number of common shares was 59,000. Feb. 28, 2021 Sold 8,000 common shares for $136,000 cash. May 31, 2021 Reacquired 4,000 common shares for $60,000 cash. Nov. 1, 2021 Issued 12,000 common shares in exchange for land with a fair value of $260,000. (b) * Your answer is incorrect. Try again. Calculate the weighted average number of common shares for the year. Weighted average number of shares 65333 Question 13 On December 31, 2020, Sheridan Corporation had the following shareholders' equity accounts: SHERIDAN CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders' equity Common shares (unlimited number of shares authorized, 91,000 issued) Retained earnings Total shareholders' equity $1,149,000 550,000 $1,699,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. July 1 Announced a 3-for-2 stock split. The market price per share on the date of the announcement was $12. Dec. 15 Declared a 15% stock dividend to shareholders of record on December 30, distributable on January 15. On December 15, the market price of each share was $8; on December 30, $11; and on January 15, $10. 31 Determined that profit before income tax for the year was $462,000. The company has a 35% income tax rate. (a) Your answer is partially correct. Try again. Journalize the transactions and closing entries for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit Jan. 15 ECash Dividends - Common 91000 91000 Dividends Payable (To record declaration of cash dividend.) M Jan. 31 No Entry No Entry Feb. 15 Dividends Payable 91000 Cash 91000 (To record payment of dividend.) Memo: 3-for-2 stock split increases the number of shares to July 1x no entry Dec. 15 Retained Earnings Stock Dividends Distributa (To record declaration of stock dividend.) Dec. 30 No Entry No Entry 0 Dec. 30 V No Entry 0 No Entry X Dec. 31 Retained Earnings 91000 x Stock Dividends 91000 (To close Income Summary.) X Dec. 31 v Income Summary 300300 X Retained Earnings 300300 (To close dividends to retained earnings.) Question 14 The ledger of Blossom Corporation at November 30, 2021, contains the following summary data: Cash dividends-common $71,000 Operating expenses $1,122,000 Cash dividends-preferred Other comprehensive income-loss on 25,000 92,000 equity investments (before income tax) Common shares 326,000 Rent revenue 60,000 Cost of goods sold 7,400,000 Preferred shares ($5 noncumulative) 402,000 Depreciation expense 362,000 Retained earnings, December 1, 2020 753,000 Sales 9,032,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $19,400 befo income tax. The division was sold at a loss of $81,000 before income tax. 3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2020, with no changes during the year. (a) Prepare a multiple-step income statement for the year. BLOSSOM CORPORATION Income Statement Earnings per share $ The ledger of Crane Limited at October 31, 2021, contains the following summary data: Cash dividends-common Common shares Depreciation expense Service revenue Operating expenses Interest expense Retained earnings, November 1, 2020 $117,000 642,000 89,000 1,463,000 923,000 52,000 567,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. On March 19, 2021, Crane discovered an error made in the previous fiscal year. A $53,000 payment of a note payable had been recorded as interest expense. 3. On April 10, 2021, common shares costing $73,000 were reacquired for $97,000. This is the first time the company has reacquired common shares. (a) Prepare a journal entry to correct the prior period error. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 19, 2021 (To record correction of error.)