Nomis Ltd reported the following items on the balance sheet at December 31, 2020. Assets Current...
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Nomis Ltd reported the following items on the balance sheet at December 31, 2020. Assets Current assets Property, plant and equipment, net Total assets Liabilities Current liabilities Bonds, net Total liabilities Shareholders' Equity $0.5 cumulative preferred shares; 400 shares issued Common shares; 6,000 shares issued Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 55,100 109,400 164,500 37,600 50,000 87,600 1,500 48,000 27,400 76,900 164,500 During the year 2021, Nimos Ltd. had encountered the following transactions which affected shareholders' equity: Feb-12: Issued 1,000 common shares for $6.1 per share. Jun-17: Declared the regular cash dividend on the preferred shares. Aug-09: Paid the cash dividend. Jun-17: Declared the regular cash dividend on the preferred shares. Aug-09: Paid the cash dividend. Sep-03: Declared 10% stock dividend on the common shares. Market price of common shares at the time was $6.3 per share. Sep-25: Distributed the stock dividend. Oct-31: Issued 500 common shares for $6.5 per share. Req. 1: Journalize Nimos Ltd's transactions. Use the table for req. 1 below. There might be more rows than you need. In this case, leave the remaining ones blank. Req. 2: Report Nimos Ltd.'s shareholders' equity at Dec. 31, 2021. Net income for the year was $22,700. Use the table for req. 2 below (scroll down if you do not see the entire window) Req. 3: Calculate the 'book value per common share' ratio for 2020 and 2021 and indicate whether the company's profitability (based on this ratio) has improved or deteriorated. Use table 3 below to provide your answer. (scroll down if you do not see the table 3 in the response window) Req. 4: Demonstrate your understanding of the relationships among the financial statements by answering the following question (use table 4 to provide your answer, scroll down if you do not see table 4 in the response window): If you could pick a single source of cash for your business, what would it be? Provide a rationale for your decision (2-3 sentences). Your answer to Requirement 1: Date Account Debit Credit Your answer to Req. 2: Shareholders' equity at Dec. 31, 2021 Your answer to Req. 3: Book value per common share 2020: Book value per common share 2021: Improvement or deterioration of profitability according to this ratio: Your answer to Req. 4: I If you could pick a single source of cash for your business, what would it be? Provide a rationale for your decision (2-3 sentences). Nomis Ltd reported the following items on the balance sheet at December 31, 2020. Assets Current assets Property, plant and equipment, net Total assets Liabilities Current liabilities Bonds, net Total liabilities Shareholders' Equity $0.5 cumulative preferred shares; 400 shares issued Common shares; 6,000 shares issued Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 55,100 109,400 164,500 37,600 50,000 87,600 1,500 48,000 27,400 76,900 164,500 During the year 2021, Nimos Ltd. had encountered the following transactions which affected shareholders' equity: Feb-12: Issued 1,000 common shares for $6.1 per share. Jun-17: Declared the regular cash dividend on the preferred shares. Aug-09: Paid the cash dividend. Jun-17: Declared the regular cash dividend on the preferred shares. Aug-09: Paid the cash dividend. Sep-03: Declared 10% stock dividend on the common shares. Market price of common shares at the time was $6.3 per share. Sep-25: Distributed the stock dividend. Oct-31: Issued 500 common shares for $6.5 per share. Req. 1: Journalize Nimos Ltd's transactions. Use the table for req. 1 below. There might be more rows than you need. In this case, leave the remaining ones blank. Req. 2: Report Nimos Ltd.'s shareholders' equity at Dec. 31, 2021. Net income for the year was $22,700. Use the table for req. 2 below (scroll down if you do not see the entire window) Req. 3: Calculate the 'book value per common share' ratio for 2020 and 2021 and indicate whether the company's profitability (based on this ratio) has improved or deteriorated. Use table 3 below to provide your answer. (scroll down if you do not see the table 3 in the response window) Req. 4: Demonstrate your understanding of the relationships among the financial statements by answering the following question (use table 4 to provide your answer, scroll down if you do not see table 4 in the response window): If you could pick a single source of cash for your business, what would it be? Provide a rationale for your decision (2-3 sentences). Your answer to Requirement 1: Date Account Debit Credit Your answer to Req. 2: Shareholders' equity at Dec. 31, 2021 Your answer to Req. 3: Book value per common share 2020: Book value per common share 2021: Improvement or deterioration of profitability according to this ratio: Your answer to Req. 4: I If you could pick a single source of cash for your business, what would it be? Provide a rationale for your decision (2-3 sentences).
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Answer rating: 100% (QA)
Answer Req 1 Date Accounts Debit Credit Feb 12 Cash 1000 61 6100 Common stock 6100 To record issue o... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
Posted Date:
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