Question

2. On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At that...

2. On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At that date, the company had no other assets, liability, or shareholders’ equity balance. On January 2, 2020. Twist paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (PV-OCI) investments. During the year, Twist received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Determine the following amounts for 2020: a. Net income. b. Other comprehensive income. c. Comprehensive income. d. Accumulated other comprehensive income (as at the end of 2020)

Homework Answers

Answer #1
Answer
Explanation :  
a) Net Income / (Loss) (non taxable cash dividend received) $       18,000
b) Other Comprehensive Income (unrealized holding gain) $       25,000
c) Comprehensive Income $       43,000
Net Income + Other Comprehensive Income
= $18,000 + $25,000
d) Accumulated Other Comprehensive Income (as at the end of 2020) $       25,000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
2. On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At that...
2. On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At that date, the company had no other assets, liability, or shareholders’ equity balance. On January 2, 2020. Twist paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (PV-OCI) investments. During the year, Twist received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Determine the following amounts for...
On January 1, 2014, Tri-State Industries had cash and common stock of $180,000. At that date...
On January 1, 2014, Tri-State Industries had cash and common stock of $180,000. At that date the company had no other asset, liability or equity balances. On January 2, 2014, it purchased $160,000 of equity securities for cash that it classified as available-for-sale. It received cash dividends of $9,000 during the year on these securities. In addition, it had an unrealized holding gain on these securities of $24,000 net of tax. Based on this information, what is the amount of...
The Flounder Corporation had income from continuing operations of $13 million in 2020. During 2020, it...
The Flounder Corporation had income from continuing operations of $13 million in 2020. During 2020, it disposed of its restaurant division at a loss of $82,000 (net of tax of $38,000). Before the disposal, the division operated at a loss of $218,000 (net of tax of $135,000) in 2020. Blue Collar also had an unrealized gain-OCI of $44,000 (net of tax of $18,000) related to its FV-OCI equity investments. Flounder had 10 million common shares outstanding during 2020. Prepare a...
Pronghorn Corporation, a clothing retailer, had income from operations (before tax) of $405,000, and recorded the...
Pronghorn Corporation, a clothing retailer, had income from operations (before tax) of $405,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 29,160 Unrealized (loss)/gain on FV-NI investments (58,320 ) (Loss)/gain on disposal of building (73,440 ) Gain on disposal of FV-NI investments 35,640 Pronghorn also had the following account balances as at January 1, 2020: Retained earnings $442,800 Accumulated other comprehensive income (this was due to a revaluation surplus on...
On January 1, 2015, Sigma Inc. had these stockholders’ equity balances. Common Stock, $1 par (3,000,000...
On January 1, 2015, Sigma Inc. had these stockholders’ equity balances. Common Stock, $1 par (3,000,000 shares authorized, 615,000 shares issued and outstanding) $615,000 Paid-in Capital in Excess of Par Value 1,410,000 Retained Earnings 690,000 Accumulated Other Comprehensive Income 60,000 During 2015, the following transactions and events occurred. 1. Issued 54,500 shares of $1 par value common stock for $2 per share. 2. Issued 55,500 shares of common stock for cash at $6 per share. 3. Purchased 19,600 shares of...
Presented below is information which relates to Pharoah Company, a Canadian public corporation traded on the...
Presented below is information which relates to Pharoah Company, a Canadian public corporation traded on the Toronto Stock Exchange, for 2020. Net income $435,000 Retained earnings, January 1, 2020 820,000 Cash dividends declared on common shares 33,000 Correction of calculation error depreciation understatement in 2016 (pre-tax) 459,000 Gain on FV-OCI investments (net of tax) 202,000 Proceeds from issuance of Pharoah common shares 55,000 Accumulated other comprehensive income, January 1, 2020 15,500 On January 1, 2020, Pharoah had 18,000 common shares...
On January 1, 2020, Castaway Corp. issued 5,000 shares of preferred stock ($15 par value) at...
On January 1, 2020, Castaway Corp. issued 5,000 shares of preferred stock ($15 par value) at $45 per share. Each share of preferred stock is redeemable at the option of the stockholder at $45 per share. On September 1, 2020, preferred shareholders holding 1,000 shares of preferred stock redeemed their stock. The entry recorded by Castaway Corp. on September 1, 2020, would include the following: A. No net change to stockholders’ equity. B. A decrease to retained earnings for $5,000....
Pharoah Co. reports the following information for 2017: sales revenue $756,800, cost of goods sold $518,900,...
Pharoah Co. reports the following information for 2017: sales revenue $756,800, cost of goods sold $518,900, operating expenses $89,600, and an unrealized holding loss on available-for-sale securities for 2017 of $54,400. It declared and paid a cash dividend of $12,390 in 2017. Pharoah Co. has January 1, 2017, balances in common stock $363,100; accumulated other comprehensive income $88,700; and retained earnings $91,090. It issued no stock during 2017. Prepare a statement of stockholders’ equity. total retained earnings Accumulated Other Comprehensive...
2021 2020 Number of Shares Amount Number of Shares Amount Common shares, unlimited authorized     Balance, January...
2021 2020 Number of Shares Amount Number of Shares Amount Common shares, unlimited authorized     Balance, January 1 440,000 $528,000 440,000 $528,000         Issued shares for cash 44,000 28,500 0         Reacquired shares (22,000 ) (25,295 ) 0     Balance, December 31 462,000 531,205 440,000 528,000 Contributed surplus—reacquisition of common shares     Balance, January 1 13,000 13,000         Reacquired common shares 7,000 0     Balance, December 31 20,000 13,000 Retained earnings     Balance, January 1 158,000 167,000         Profit (loss) 20,000 17,500         Common dividends—Cash (19,000 ) (26,500 )     Balance,...
2017: sales revenue $777,100, cost of goods sold $520,000, operating expenses $89,200, and an unrealized holding...
2017: sales revenue $777,100, cost of goods sold $520,000, operating expenses $89,200, and an unrealized holding loss on available-for-sale securities for 2017 of $53,700. It declared and paid a cash dividend of $11,670 in 2017. Barber Co. has January 1, 2017, balances in common stock $360,400; accumulated other comprehensive income $86,000; and retained earnings $92,040. It issued no stock during 2017. Prepare a statement of stockholders’ equity. Prepare a statement of stockholders’ equity.               Total         Retained Earnings Income       Common Stock...