Question
The Kimm Company had the following assets and liabilities on the dates indicated. Kimm began business on January 1, 2013, with an investment of $600,000
The Kimm Company had the following assets and liabilities on the dates indicated. Kimm began business on January 1, 2013, with an investment of $600,000 (60,000 shares, par value = $10).
December 31 | Total Assets | Total Liabilities |
2013 | $1,700,000 | 300,000 |
2014 | 1,900,000 | 100,000 |
2015 | 2,500,000 | 1,700,000 |
- In 2013, Kimm paid $50,000 dividends and no additional investment was made. Other comprehensive income was $1,000
- In 2014, Kimm paid $100,000 dividends, additional investment of $200,000 (20,000 shares, par value = $10) was made by shareholders on September 1, 2014. Other comprehensive income (loss) was $(2,000).
- In 2015, Kimm had zero dividends and no additional investment was made. Other comprehensive income (loss) was $(500,000).
P1. Determine net income in 2013, 2014 and 2015. (Show work clearly)
P2. Determine basic earnings per share in 2013, 2014 and 2015. (Show work clearly)
P3. Determine comprehensive income in 2013, 2014 and 2015. (Show work clearly)
P4. Determine the balance of retained earnings at the end of 2015. (Show work clearly)
P5. Determine the balance of common stock at the end of 2015. (Show work clearly)
P6. Determine the balance of accumulated other comprehensive income at the end of 2015. (Show work clearly)
Hint : Use Equity = CS +RE+AOCI, along with A = L + E. No preferred stock (thus no preferred div, net income to common stockholders = net income)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started