Additional Information: 1) On January 20, 2019, Bracker issued 10,000 shares of its common stock for land having a fair value of $215,000. 2) On February 05, 2019, Bracker re-issued all of its treasury stock for $44,000. 3) On May 15, 2019, Bracker paid a $58,000 cash dividend on its common stock. 4) On August 08, 2019, Bracker purchased equipment for $127,000. 5) On September 30, 2019, Bracker sold equipment for $40,000. The equipment cost $62,000 and had a carrying value of $34,000 on the date of sale. 6) On December 15, 2019, Dorie paid a cash dividend of $50,000 on its common stock. 7) Bracker recognized a goodwill impairment loss of $3,000 in 2019. 8) Deferred income taxes represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight line method for financial reporting {: } 9) 2019 Net income: Consolidated Net Income of $231,000 and Dorie Corporation of $110,000 10) Bracker owns 70 percent of its subsidiary, Dorie. No change in the ownership interest in Dorie occurred during 2018 and 2019. No intercompany transactions occurred other than the dividends paid to Bracker by its subsidiary.

Additional Information: 1) On January 20, 2019, Bracker issued 10,000 shares of its common stock for land having a fair value of $215,000. 2) On February 05, 2019, Bracker re-issued all of its treasury stock for $44,000. 3) On May 15, 2019, Bracker paid a $58,000 cash dividend on its common stock. 4) On August 08, 2019, Bracker purchased equipment for $127,000. 5) On September 30, 2019, Bracker sold equipment for $40,000. The equipment cost $62,000 and had a carrying value of $34,000 on the date of sale. 6) On December 15, 2019, Dorie paid a cash dividend of $50,000 on its common stock. 7) Bracker recognized a goodwill impairment loss of $3,000 in 2019. 8) Deferred income taxes represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight line method for financial reporting {: } 9) 2019 Net income: Consolidated Net Income of $231,000 and Dorie Corporation of $110,000 10) Bracker owns 70 percent of its subsidiary, Dorie. No change in the ownership interest in Dorie occurred during 2018 and 2019. No intercompany transactions occurred other than the dividends paid to Bracker by its subsidiary.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
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Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
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Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
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