Ace Company had 200,000 shares of common stock outstanding on December 31, 2021. During the year 2022, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2022, Ace Company reported net income of $249,690 after a loss from discontinued operations of $40,600 (net of tax). Instructions What earnings per share data should be reported at the bottom of its income statement?
Q: On January 1, 2020, FAB Co. had 100,000 ordinary shares outstanding. During 2020, the following…
A: On 01.01.2020, FAB Co. had outstanding shares = 100000 During 2020, On March 1, Company had split 2…
Q: The 2020 income statement of Blossom Corporation showed net income of $1,271,000, which included a…
A: Earnings per share (EPS) which states that how much money which company could make for each and…
Q: During 2018, Longhorn Corp. had net income of $300,000 and paid dividends to its preferred…
A: The question is based on the concept of Shares and debentures.
Q: At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 1,000 million shares of…
A: Formula: Earnings per share = (Net Income - Preferred dividends) / No. of common shares outstanding…
Q: At December 31, 2020, Coronado Industries had 1140000 shares of common stock outstanding. In…
A: We know that the diluted earnings per share is the net income generated by each outstanding share…
Q: Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2…
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 2-for-1 basis. In its…
A: No. of shares outstanding after split off = No. of shares outstanding before split off x split off…
Q: Lyon Company shows the following condensed income statement information for the year ended December…
A: EPS: EPS stands for Earnings per share. It tells about the profit earned per share. EPS = ( Net…
Q: In 2019, Hesin Corporation reported net income of 1,000,000,It declared and paid preferred stock…
A: Earnings Per Share: =[Net Income - Preferred Dividends] / Number of common shares outstanding
Q: On December 31, 2022, Voice Company had 500,000 ordinary shares issued and outstanding, 400,000 of…
A: SOLUTION- COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES - DATE NUMBER OF SHARES MONTHS…
Q: Ivanhoe Corporation had 80,000 common shares outstanding on December 31, 2019. During 2020, the…
A: Event Dates Outstanding Shares Restatement Months Weighted shares (a) (b) (c) (a*b*c)…
Q: Graham, Inc. began 2020 with 25,000 common shares outstanding and issued a 20% stock dividend on…
A: Earnings per share of the company means all earnings available for each and every common…
Q: At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 840 million shares of…
A: Earnings per Share: Earnings per share help to measure the profitability of a company. Earnings per…
Q: At December 31, 2020, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager…
A: Diluted earnings per share = Net Income /(Weighted average number of ordinary and dilutive…
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: EPS means net earnings on a single share. Firm use equity funds to generate a profit. EPS show how…
Q: Blue Spruce Limited reported profit of $436,010 for its November 30, 2021, year end. Cash dividends…
A: Profit available to common share holders= Net profit- Preference dividend = 436010-69500 = 366510
Q: Montrose Construction Ltd. had 64,000 common shares and 22,000 preferred shares outstanding on…
A: Earnings per share is one of the important calculation being made in business. It shows how much…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: On January 1, 2020 ,Herron Corporation purchased 5,000 shares of treasury stock. Other information…
A: Return on Common Stockholders' Equity will be calculated using following Formulae : Return on Common…
Q: At the beginning of 2020, Tucker Corporation had assets of $350,000 and liabilities of $175,000. At…
A: Assets = Liabilities + Shareholders' Equity
Q: On January 1, 2021, Paver Corporation had 84,000 common shares, recorded at $659,000, and retained…
A: Calculation of the number of common shares at the end of the year:- Number of common shares:-…
Q: Flyaway Travel Company reported net income for 2021 in the amount of $90,000. During 2021, Flyaway…
A:
Q: During 2019 Sasha Corporation reported a net income of $1,529,500. On January 1, 2020, Sasha had…
A: Part of shares issued on oct 1=210,000×312=52,500
Q: Sunland Inc. began operations in January 2018 and reported the following results for each of its 3…
A: Book value of common stock: It is the face value of common stock available to the shareholders.
Q: On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: As of December 31, 2023, Ajax Corporation reported the following: Salaries payable $25,000; Treasury…
A: Equity share capital refers capital which is raised by a corporation by offering shares.
Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…
A: Earnings per share (EPS) is calculated by dividing the net income earned by the Company by the…
Q: Phelps, Incorporated had assets of $67,646, llabilities of $15,466, and 10,718 shares of outstanding…
A: Ratio Analysis :— Ratio analysis is the process of Determination and interpreting numerical…
Q: On December 31, 2020, the Frisbee Company had 262,000 shares of common stock issued and outstanding.…
A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…
Q: The Red Hat Company began operations in January 2018 and reported the following results of…
A: Preference Share Capital = P 6,000,000 Dividend = 9% Preference share outstanding = 60,000 Ordinary…
Q: Bramble Inc. began operations in January 2018 and reported the following results for each of its 3…
A: Requirement 1:
Q: At December 31, 2017 and 2018, Funk and Noble corporation had outstanding 760 million shares of…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Q: Calculate earnings per share. Earnings per share = $Answer b) Calculate the dividend yield.…
A: Earning per share :— It is the value of earnings available to equity shareholders per number of…
Q: At December 31, 2021, MedX Corporation had outstanding 200,000 shares of common stock. Also…
A: Basic earnings per share = (Net income - preferred dividend)/Weighted average outstanding common…
Q: Concord Inc. had net income for 2020 of $5,920,000. The company had 2,200,000 of common shares…
A: Ratio is a tool which is used to measure the firm’s performance and growth by establishing relation…
Q: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding,…
A: Earnings per share = Net IncomeWeighted Average number of shares
Q: Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude…
A: The question is related to Journal Entries in the Books of Brenner-Jude for the year ended December…
Q: Sheridan Company had 219,600 shares of common stock outstanding on December 31, 2021. During the…
A: Earnings per shares refers to the profit earned by each shareholder after paying all the expenses of…
Q: Abajo, Inc. went into business on January 1, 2017 when it issued 100 shares of stock for $10,000. No…
A: Return on Equity = Net IncomeShareholder's Equity it is the measure of financial performance and it…
Q: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding,…
A: Answer) Calculation of Earnings per Common Share Earnings per common share = Earnings available for…
Q: On August 1, 2020, Fickle Feline Inc. declared $184,000 of dividends payable to shareholders on…
A: Journal entries in the account books is the primary record that is being maintained for all the…
Q: The Retained Earnings for Blanka Corporation at January 1, 2021 were $250,000. The corporation had…
A: Retained earnings is the term that represents the profits accumulated by the entity that are not…
Q: Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the…
A: Earning per share is calculated to know the earnings share, every shareholder would get for the…
Q: Purple Cab Company had 60,000 shares of common stock outstanding on January 1, 2021. On April 1,…
A: Weighted average outstanding common stock = 60000 shares + 30000*9/12 = 82500 shares
Q: During the year 2019, Howard industries reported net income of P1,000,000. The company declared and…
A: Earnings per share = Earnings after payment of preferred dividends Weighted Number of common shares…
Q: On January 1, 2021, a company had 499,000 shares of common stock outstanding. During the year, it…
A: Weighted average number of shares outstanding is the average number of shares that are outstanding…
Q: During the year ended December 31, 2020, Gluco Inc. split its stock on a 5-for-1 basis. In its…
A: EPS = Net income / Average shares of common stock outstanding for that year
Q: On December 31, 2020 and 2021, Jimenez Corporation had 100,000 shares consisting of 90,000 shares…
A:
Q: Torres Company began business on June 30, 2018. At that time, it issued 17,500 shares of $40 par…
A: Dividend Distribution : Cumulative Preferred stockholder have the right to receive dividend on…
Q: The 2020 income statement of Wasmeier Corporation showed net income of $480,000 and a loss from…
A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…
Ace Company had 200,000 shares of common stock outstanding on December 31, 2021. During the year 2022, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2022, Ace Company reported net income of $249,690 after a loss from discontinued operations of $40,600 (net of tax).
Instructions
What earnings per share data should be reported at the bottom of its income statement?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
- Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
- The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
- Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.
