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Tompkins Financial Corporation is a financial servicesholdingcompany headquartered in New York that offers banking,insurance, and wealth management services. It pays cash dividendsquarterly and also issues stock dividends periodically.

1. At March 31, 2012, Tompkins had 11,233, 280 issued shareswith par value of $0.10 per share and 93,433 shares held intreasury. On April 25, 2012, the company announced that its Boardof Directors approved payment of a regular quarterly cash dividendof $0.36per share, payable onMay 15, 2012, to common shareholdersof record on May 7, 2012. Assume no shares were acquried or sold bythe company after March 31. GIve the journal entry to recorddeclaration of cash dividend.

2. At December 31, 2009, Tompkins had 9,785,265 issued shareswith a par value of $0.10 per share and 81,723 shares held intreasury. On January 27,2010,the company announced that the Boardapproved payment of a regular quarterly cash dividend of $0.3091per share, payable on February 25, 2010, to common shareholders ofrecordon February 5, 2010. The Board also approved payment of a 10%stock dividend distributable on Feb 25,2010, to common shareholdersof record on February 5, 2010. The share price was $35.93 when thestockdividend was issued. Assume no shares were acquiredor sold bythe company after December 31. Prepare the journal entry to recordTompkins' stock dividend.

3. Tompkins issued 10% stock dividends in1995,2003, 2005, 2006,and 2010.In 1998 Tompkins issueda three-for-two split. If aninvestor purchased 100 shares in 1994, how many shares would theinvestor have in 2012?

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Jean Keeling
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28 Sep 2019

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UBL Financial Group provides personal and commercial banking, wealth management services, insurance, and corporate and investment banking. On March 3, 2017, the company announced that its board of directors had declared a stock dividend, which has the same effect as a two-for-one split of its common shares. The board of directors also declared a quarterly common share cash dividend of $0.52 per share, which represents $0.26 per share on a post-stock dividend basis. This dividend of $0.26 per share, as well as the stock dividend, are payable on May 24, 2017, to common shareholders of record on April 25, 2017.

Required: 1. Prepare any journal entries that UBC Financial should make as the result of information in the preceding report. Assume that the company has 1.3 million shares outstanding with a market value of $13.25 per share and an average issue price of $5.60

1. Record declaration of stock dividend

2. Record declaration of cash dividend

3. Recod issuance of shares to current shareholders as common stock dividend

4. Recod payment of cash dividend
1.

Trask Corporation, a public company whose shares are traded in the over-the-counter market, had the following shareholders' equity account balances at December 31, 2016:

Common stock $7,875,000

Additional paid-in capital (including stock options) $16,050,000

Retained earnings $16,445,000

Treasury common stock $750,000

Transactions during 2017 and other information relating to the shareholders' equity accounts follow:

As of January 1, 2017, Trask had 4,000,000 authorized shares of $5 par-value common stock; it had issued 1,575,000 shares of which 75,000 were held in treasury.

On January 21, 2017, Trask issued 50,000 shares of $100 par value, 6% cumulative preferred stock at par in exchange for all of Rover Company's assets and liabilities. On that date, the net carrying amount of Rover's assets and liabilities equaled their fair values.

On January 22, 2017, Rover distributed the Trask shares to its stockholders in a complete liquidation and dissolution of Rover. Trask had 150,000 authorized shares of preferred stock.

On February 17, 2017, Trask formally retired 25,000 of 75,000 treasury common stock shares. The shares were originally issued at $15 per share and had been acquired on September 25, 2016, for $10 per share.

Trask owned 15,000 shares of Harbor Inc. common stock purchased in 2016 for $600,000. The Harbor stock shares are carried t fair value with price changes included in net income. On March 5, 2017, Trask declared a property dividend of one share of Harbor common stock for every 100 shares of Trask common stock held by a shareholder of record on April 16, 2017. Harbor stock's market price on March 5, 2017, was $60 per share. The property dividend was distributed on April 29, 2017.

On January 2, 2012, Trask granted stock options to employees to purchase 200,000 shares of the company's common stock at $12 per share, which was also the market price on that date. The options had a grant date fair value of $1.50 per share and are exercisable within a three-year period, beginning January 2, 2017. On June 1, 2017, employees exercised 150,000 options when the stock's market value was $25 per share. Trask issued new shares to settle the transaction.

On December 12, 2017, Trask declared the yearly cash dividend on preferred stock, payable on January 11, 2018, to shareholder of record on December 31, 2017.

On January 16, 2018, before the accounting records were closed for 2017, Trask learned that depreciation expense had been understated by $350,000 for the year ended December 31, 2016. The after-tax effect on 2016 net income was $245,000. The appropriate correcting entry to adjust January 1, 2017 retained earnings was recorded on the same day.

Net income for 2017 was $2,400,000.

Required:

Prepare a schedule to show how Trask's retained earnings changed from January 1, 2017, to December 31, 2017.

Prepare the shareholders' equity section of Trask's balance sheet at December 31, 2017.

Compute the book value per share of common stock at December 31, 2017

P16-7 (Computation of Basic and Diluted EPS) Charles Austin ofthe controller’s office of Thompson Corporation was given theassignment of determining the basic and diluted earnings per sharevalues for the year ending December 31, 2015. Austin has compiledthe information listed below. 1. The company is authorized to issue8,000,000 shares of $10 par value common stock. As of December 31,2014, 2,000,000 shares had been issued and were outstanding. 2. Theper share market prices of the common stock on selected dates wereas follows. Price per ShareJuly 1, 2014 $20.00January 1, 2015 21.00April 1, 2015 25.00July 1, 2015 11.00 August 1, 2015 10.50November1, 2015 9.00December 31, 2015 10.00 3. A total of 700,000 shares ofan authorized 1,200,000 shares of convertible preferred stock hadbeen issued on July 1, 2014. The stock was issued at its par valueof $25, and it has a cumulative dividend of $3 per share. The stockis convertible into common stock at the rate of one share ofconvertible preferred for one share of common. The rate ofconversion is to be automatically adjusted for stock splits andstock dividends. Dividends are paid quarterly on September 30,December 31, March 31, and June 30. 4. Thompson Corporation issubject to a 40% income tax rate. 5. The after-tax net income forthe year ended December 31, 2015, was $11,550,000.The followingspecific activities took place during 2015. 1. January 1—A 5%common stock dividend was issued. The dividend had been declared onDecember 1, 2014, to all stockholders of record on December 29,2014.April 1—A total of 400,000 shares of the $3 convertiblepreferred stock was converted into common stock. The company issuednew common stock and retired the preferred stock. This was the onlyconversion of the preferred stock during 2015. 3. July 1—A 2-for-1split of the common stock became effective on this date. The boardof directors had authorized the split on June 1. 4. August 1—Atotal of 300,000 shares of common stock were issued to acquire afactory building. 5. November 1—A total of 24,000 shares of commonstock were purchased on the open market at $9 per share. Theseshares were to be held as treasury stock and were still in thetreasury as of December 31, 2015. 6. Common stock cashdividends—Cash dividends to common stockholders were declared andpaid as follows. April 15—$0.30 per share October 15—$0.20 pershare 7. Preferred stock cash dividends—Cash dividends to preferredstockholders were declared and paid as scheduled. Instructions (a)Determine the number of shares used to compute basic earnings pershare for the year ended December 31, 2015. (b) Determine thenumber of shares used to compute diluted earnings per share for theyear ended December 31, 2015. (c) Compute the adjusted net incometo be used as the numerator in the basic earnings per sharecalcu-lation for the year ended December 31, 2015.

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