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1. Springer Inc. began 2021 with 10,000 shares of common stock outstanding with a par value of $10 per share. Springer also had 4,000 shares of cumulative, convertible, 9.5%, $100 par preferred stock outstanding at the beginning of 2021. Each share of preferred stock is convertible into 2 shares of common stock. The following items occurred during the year: Isssued 5,000 shares of common stock Issued 10,000 shares of preferred stock Declared a 3-1 stock split on common stock 1-Mar 1-Apr 1-Jun 31-Aug 1-Dec Reacquired 15,000 shares of common stock Issed a 15% stock dividend on common stock Springer also has $100,000 of convertible bonds with a 7% interest rate. Each $1,000 bond is convertible into 13 shares of common stock. The bonds are outstanding for the entire year. Ignore income taxes for the purposes of this problem. Springer earned net income of $175,000 in 2021 Calculate basic earnings per share and diluted earnings per share for 2021.

1. Springer Inc. began 2021 with 10,000 shares of common stock outstanding with a par value of $10 per share. Springer also had 4,000 shares of cumulative, convertible, 9.5%, $100 par preferred stock outstanding at the beginning of 2021. Each share of preferred stock is convertible into 2 shares of common stock. The following items occurred during the year: Isssued 5,000 shares of common stock Issued 10,000 shares of preferred stock Declared a 3-1 stock split on common stock 1-Mar 1-Apr 1-Jun 31-Aug 1-Dec Reacquired 15,000 shares of common stock Issed a 15% stock dividend on common stock Springer also has $100,000 of convertible bonds with a 7% interest rate. Each $1,000 bond is convertible into 13 shares of common stock. The bonds are outstanding for the entire year. Ignore income taxes for the purposes of this problem. Springer earned net income of $175,000 in 2021 Calculate basic earnings per share and diluted earnings per share for 2021.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 27E: Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2...
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1. Springer Inc. began 2021 with 10,000 shares of common stock outstanding with a par value of $10 per share. Springer also had 4,000 shares of cumulative, convertible, 9.5%, $100 par preferred stock outstanding at the beginning of 2021. Each share of preferred stock is convertible into 2 shares of common stock. The following items occurred during the year: Isssued 5,000 shares of common stock Issued 10,000 shares of preferred stock Declared a 3-1 stock split on common stock Reacquired 15,000 shares of common stock 1-Mar 1-Apr 1-Jun 31-Aug 1-Dec Issed a 15% stock dividend on common stock Springer also has $100,000 of convertible bonds with a 7% interest rate. Each $1,000 bond is convertible into 13 shares of common stock. The bonds are outstanding for the entire year. Ignore income taxes for the purposes of this problem. Springer earned net income of $175,000 in 2021 Calculate basic earnings per share and diluted earnings per share for 2021.
Transcribed Image Text:1. Springer Inc. began 2021 with 10,000 shares of common stock outstanding with a par value of $10 per share. Springer also had 4,000 shares of cumulative, convertible, 9.5%, $100 par preferred stock outstanding at the beginning of 2021. Each share of preferred stock is convertible into 2 shares of common stock. The following items occurred during the year: Isssued 5,000 shares of common stock Issued 10,000 shares of preferred stock Declared a 3-1 stock split on common stock Reacquired 15,000 shares of common stock 1-Mar 1-Apr 1-Jun 31-Aug 1-Dec Issed a 15% stock dividend on common stock Springer also has $100,000 of convertible bonds with a 7% interest rate. Each $1,000 bond is convertible into 13 shares of common stock. The bonds are outstanding for the entire year. Ignore income taxes for the purposes of this problem. Springer earned net income of $175,000 in 2021 Calculate basic earnings per share and diluted earnings per share for 2021.
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