The shareholders' equity accounts for Erle Enterprises Inc. at the beginning of the year were as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The shareholders' equity accounts for Erle Enterprises Inc. at the beginning of the year were as follows: Preferred shares (10,000 issued) Common shares (900,000 issued) Contributed surplus Retained earnings Accumulated other comprehensive income $300,000 900,000 10,000 400,000 25,000. During the year the following transactions/events took place: 1. A 2-for-1 preferred stock split; market price was $30 2. Declared a 10% stock dividend to common shareholders; fair value was $1.20 3. Profit before tax was $200,000 O $1,815,000 O $1,809,000 $1.917.000 O $1.875.000 4. Other comprehensive income net of tax was $20,000 5. Inventory was debited $20,000 to correct a previous period error The tax rate for Erle Enterprises is 30%. What would be the shareholders' equity balance at the end of the year? The shareholders' equity accounts for Erle Enterprises Inc. at the beginning of the year were as follows: Preferred shares (10,000 issued) Common shares (900,000 issued) Contributed surplus Retained earnings Accumulated other comprehensive income $300,000 900,000 10,000 400,000 25,000. During the year the following transactions/events took place: 1. A 2-for-1 preferred stock split; market price was $30 2. Declared a 10% stock dividend to common shareholders; fair value was $1.20 3. Profit before tax was $200,000 O $1,815,000 O $1,809,000 $1.917.000 O $1.875.000 4. Other comprehensive income net of tax was $20,000 5. Inventory was debited $20,000 to correct a previous period error The tax rate for Erle Enterprises is 30%. What would be the shareholders' equity balance at the end of the year?
Expert Answer:
Answer rating: 100% (QA)
Step 1 The balance of shareholders equity refers to the total amoun... View the full answer
Related Book For
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these general management questions
-
At the beginning of last year you invested $30,000 in 1,500 shares of Goran Products Inc. During the year you received $4,500 as a dividend. At the end of the year you sold the shares for $18 each....
-
What is accumulated other comprehensive income (AOCI)? Where does it appear in the balance sheet? What causes it to change in a period?
-
What items are included in Accumulated Other Comprehensive Income (Loss)?
-
The following data represent the square footage and rents (dollars per month) for apartments in the La Jolla area of San Diego, California. (a) Using a graphing utility, draw a scatter plot of the...
-
A parent company sells common shares of one of its subsidiaries to a nonaffiliate for more than their carrying value on the parent's books. How should the parent company report the sale? How should...
-
How would these factors affect an EOQ analysis? (1) The use of just-in-time procedures. (2) The use of air freight for deliveries. (3) The use of a computerized inventory control system, in which an...
-
What is the generally accepted airspeed region for supersonic flight?
-
Barbara Fox was the agent of Burt Hollander, a well-known athlete. She discovered that Tom Lanceford owned a 1957 Chevrolet convertible, which had been stored in a garage for the past 15 years. After...
-
The future price of Gold for August 2022 delivery is $1,920. Future contracts are for 100 ounce of gold and assume that the margin requirement is $6,000 per contract and the maintenance margin...
-
An engineer has a DAQ with a 14-bit A/D converter and a voltage range of 0 to 10 V. They are measuring vibrations around 20 Hz, so they sample at f= 100 Hz to avoid aliasing. They add a DC offset of...
-
On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the open market and redeemed 25% of the bond issue when the market interest rate was 5%. Required Record the...
-
The junction-to-case and case-to-air resistances of a 50-by-50 mm2 chip are 5C/W and 13C/W, respectively. It is assumed that the entire 7 W heat generated at the junction of this chip is dissipated...
-
Zinn Corp. has 3.50 million shares of common stock outstanding.The firm is in steady-state growth, and analysts expect the firm's earnings and dividends to continue to grow at their historical rate...
-
If two circular rods, one steel, and one copper, are both . 7 3 5 m long and 1 . 5 0 cm in diameter, each is subjected to a force with magnitude 3 8 5 0 N that compresses the rod what is the...
-
Two electrons in a vacuum exert force of F = 3 . 2 3 E - 0 8 N on each other. They are then moved so that they are separated by x = 5 . 1 times their original distance. How far apart, in meters, were...
-
Why is it important to record the professional de opportunities that you undertake for your current position and future employment?
-
Explain the Family Medical Leave Act of 1993 in detail. Why is FMLA so important to employees as they balance work and non-work What is one societal myth about work and non-work? Why is it so...
-
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):...
-
For each of the following independent situations, indicate whether or not the cost constraint should be applied. (Write Yes or No beside each situation.) a. ______ The manager of a privately held...
-
Comparative financial statements for Click and Clack Ltd. are shown below Additional information: 1. Seventy-five percent of the sales were on account. 2. The allowance for doubtful accounts was...
-
Refer to the consolidated financial statements and notes of Aritzia Inc. in Appendix A. Instructions a. Referring to Note 10, what was the long-term debt reported by Aritzia on February 25, 2018, and...
-
Use the Chart screen (Chart ) to generate historical prices for the S\&P 500 spot, and call and put options on the index with different expirations and expiration. Select a period in which the...
-
Use the Chart screen (Chart ) to generate historical prices of a selected stock and its call and put options with different expirations and expiration. Select a period in which the options were...
-
Prove the following boundary conditions using an arbitrage argument. In your proof, show the initial positive cash flow when the condition is violated and prove there are no liabilities at expiration...
Study smarter with the SolutionInn App