The following is the shareholders' equity section of Suozzi Corp. at December 31, 2020: The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Instructions a. No dividends were paid in 2018 or 2019. On December 31, 2020, Suozzi wants to pay a cash dividend of $4 per share to common […]

In 2019, Capstone Ltd. issued $50,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $75,000 and expenses of $40,000 for 2020, not including interest and tax. (Assume a tax rate of 25%.) Throughout 2020, 1,000 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity, assume that the […]

At January 1, 2020, Ming Limited's outstanding shares included the following: Net income for 2020 was $2,130,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears before 2020. On April 1, 2020, 550,000 common shares were sold for […]

Duster Corporation is a private company with a defined benefit pension plan. The following information is available for Duster Corporation for 2020: Assuming that Duster follows IFRS, determine the 2020 effect of the pension plan on pension expense and the company's shareholders' equity.

Radford Corporation's charter authorized 1 million $11 par value common shares, and 300,000 6% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 300,000 common shares were issued for $3.6 million and 10,000 preferred shares were issued for machinery valued at $1,475,000. Subscriptions for 10,500 common shares have been taken, […]

On January 1, 2020, Copeland Ltd. (a public company) had the following shareholders' equity accounts: The following selected transactions occurred during 2020: Instructions a. Prepare journal entries to record the transactions above, as well as the closing entries for Income Summary and Dividends. b. Post the entries to the shareholders' equity and dividends T accounts. c. Prepare the statement of changes in shareholders' equity for […]

BCE Inc.'s accounting policy note and its note disclosures relating to the company's pension and other postemployment benefits for the year ended December 31, 2017 are set out in the chapter. Instructions Review the disclosures from BCE's 2017 financial statements found in the chapter and answer the following questions. a. Determine the dollar amount of the surplus or deficit of the defined benefit (DB) pension […]