Question

ABC Corp. is a public company with a December year end date. The following select balances...

ABC Corp. is a public company with a December year end date.

The following select balances are taken from the December 31, 2018 balances.

Capital stock 160,000 credit

Retained earnings 567,000 credit

Equity portion of convertible bonds 6,000 credit

Goodwill 18,000 debit

Cash flow hedge loss 65,000 debit

Investment in foreign subsidiary 92,300 debit

Translation differential from foreign subsidiary 13,000 credit

Short term investments 26,000 debit

Provision for lawsuit 44,000 credit

Contributed surplus – premium on common shares 25,500 credit

Copyrights 7,700 debit

Actuarial gain on defined benefit pension plan 29,000 credit

The following transactions occurred during 2019.

1. Net loss was 19,000

2. The entire balance of copyrights written off

3. Convertible bonds transferred to equity portion was 15,000

4. An accounting policy change resulted in an increase to prior year earnings by 22,000

5. Provision for lawsuit increased by 3,500

6. Capital stock issued for 50,000

7. Dividends declared (and unpaid and year-end) 35,000

8. The translated amount of ABC Corp’s foreign subsidiary investment declined by 1,000.

Required: Prepare a statement of changes in equity for the year ended December 31, 2019.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

PLEASE GV A RATING IF U LIKE MY EFFORTS , IT WILL KEEP US MOTIVATED. THANK YOU in advance

Ans :

Statement of changes in equity for ABC Corp. for the year ended 31 December 2019

$

$

Net Income

(19000)

Less: Loss in value/loss

    (i) Copyrights Written off

7700

    (ii) Currency Translation Loss

1,000

(8700)

Less: Increase in Provision for lawsuit

(3500)

Less: Dividend declared

(35,000)

Add: Accounting Policy Change effect

22,000

Add : New Share Capital Issued

(i) Additional Bonds Converted to equity

15,000

(ii) Capital stock issued

50000

75000

Opening Balance Share Capital & Reserves

727000

( 160000 + 567000)

Stockholders Equity (Restated Amount)

757800
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On 31 December 20X5, ABC company is a public headquartered in Vancouver. the post-closing trial balance...
On 31 December 20X5, ABC company is a public headquartered in Vancouver. the post-closing trial balance included the following accounts ( in thousands of Canadian dollars. Debit Credit Investment in Mongolian subsidiary $72,000 Provision for future site restoration $34,000 Common share 170,000 Translation differential from Mongolian subsidiary 12,000 Convertible bonds 85,000 Equity portion of convertible bonds 5,000 Contributed surplus premium on common shares issued 35,000 Goodwill from purchase of Mongolian subsidiary 18,000 Investment in shares of upstream affiliate 36,000 Retained...
Following are the unconsolidated balances of John Smith Company and its foreign subsidiaries as of December...
Following are the unconsolidated balances of John Smith Company and its foreign subsidiaries as of December 31, Year 1. Assume that Subsidiary A is 100% owned by Smith, and that Subsidiary B is 100% owned by Subsidiary A. Ignore an investment in subsidiary balances for the purposes of this Assignment. Subsidiary B in GBP (British Pounds): Net income: 20,000 Assets: 150,000 Liabilities: 100,000 Equity: 50,000 Subsidiary A in euros: Net income: 40,000 Assets: 300,000 Liabilities: 200,000 Equity: 100,000 Parent in...
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price...
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price equals book value) Assume that the parent company acquires its subsidiary on January 1, 2016, by exchanging 31,500 shares of its $1 par value Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of...
Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company...
Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company acquired a subsidiary on January 1, 2018. The purchase price was $760,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life (years) Property, plant and equipment (PPE), net $360,000 12 Goodwill 400,000 Indefinite $760,000 The AAP asset relating to undervalued PPE with...
On 30 June 2019, Harris Ltd had the following balances in its equity accounts: Ordinary shares...
On 30 June 2019, Harris Ltd had the following balances in its equity accounts: Ordinary shares (issued at $2 each) 12,000,000 credit Preference shares (issued at $1 each) 6,000,000 credit Retained earnings 9,000,000 credit Additional information is as follows: On 31 December 2016, the company issued 200,000 options to purchase ordinary shares. Each option entitles the holder to purchase 5 ordinary shares at $2.60 each. No options have been exercised by 30 June 2019. On 1 September 2017, the company...
The following information is available for Optimist Company for the year ended December 31, 2011:      ...
The following information is available for Optimist Company for the year ended December 31, 2011:                                  Accounts payable $2,700                       Accumulated depreciation, equipment       4,000                      Common stock 3,800                      Retained earnings 4,000                      Copyrights 2,500                      Notes payable (due in 5 years) 7,500                      Accounts receivable 1,500  ...
Wren Company had the following account balances at December 31, Year 1: Accounts receivable $ 900,000...
Wren Company had the following account balances at December 31, Year 1: Accounts receivable $ 900,000 Allowance for doubtful accounts before any provision for Year 1 doubtful accounts expense) 16,000 Credit sales for Year 1 1,750,000 Wren is considering the following method of estimating doubtful accounts expense for year 1: • Based on credit sales at 2% • Based on accounts receivable at 5% What amount should Wren charge to doubtful accounts expense under each method? Percentage of credit sales...
Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Grouper...
Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Grouper Corp. is provided below. Debit Credit Accounts Receivable $82,760 Dividends 29,980 Depreciation Expense 15,050 Equipment 242,590 Salaries and Wages Expense 103,850 Accounts Payable $60,420 Accumulated Depreciation—Equipment 130,870 Unearned Rent Revenue 26,110 Service Revenue 209,530 Rent Revenue 7,070 Rent Expense 4,100 Retained Earnings 70,450 Supplies Expense 1,600 Collapse question part (a) Prepare closing entries.
The following account balances were taken from the ledger of ABC Company at December 31, 2019...
The following account balances were taken from the ledger of ABC Company at December 31, 2019 before adjustments: Cash $ 42,000 Accounts Receivable 86.000 Allowance for Doubtful Accounts 2,400 Inventory 97,000 Land 62,300 Buildings 142,500 Accumulated Depreciation---Buildings 32,560 Long Term Investments 31,500 Accounts Payable 51,800 Mortgage Payable 122,500 Capital Stock, $5 par 200,000 Retained Earnings, December 31, 2017 26,950 Dividends 40,540 Sales 431,000 Sales Returns 9,560 Sales Discounts 8,440 Cost of Goods Sold 203,420 Selling Expenses 58,300 Administrative Expenses 44,200...
E4.21 (LO 4), AP Selected year-end account balances from the adjusted trial balance as of December...
E4.21 (LO 4), AP Selected year-end account balances from the adjusted trial balance as of December 31, 2022, for Tippy Corporation is provided below. Prepare closing entries. Debit Credit Accounts Receivable    $ 72,600    Dividends 26,300 Depreciation Expense 13,200 Equipment 212,800 Salaries and Wages Expense 91,100 Accounts Payable $ 53,000 Accumulated Depreciation—Equipment 114,800 Unearned Rent Revenue 22,900 Service Revenue 183,800 Rent Revenue 6,200 Rent Expense 3,600 Retained Earnings 61,800 Supplies Expense 1,400 Instructions a. Prepare closing entries b. Determine the post-closing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT