ardent co has 5,000,000 ordinary shares of 25 cents each in issue,and also had an issue in 2019; sh.1,000,000 of 14% convertible loan stock,convertible in three yearstime at the rate of two shares per shs.10 of stock.shs.2,000,000 of 10% convertible loan stock convertible in one years time at the rate of three shares per shs.5 odf stock.The total earnings in 20*4 were shs. 1,750,000.the rate of income tax is 35%.what is the basic EPS
Q: On October 1, 2021, 500 shares of treasury stock were purchased at $40 per share. On January 15,…
A: The question endeavors to understand which of the four options would be a result of the transaction…
Q: Victorino Corp. issued 200,000 ordinary shares when it began operations in Jan. 25, 2018 and issued…
A:
Q: Metlock Corporation issued 108,000 shares of $18 par value, cumulative, 9% preferred stock on…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 610 million…
A: Basic earning per share = Total earning available to common share / Outstanding number of common…
Q: Point Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable…
A: Here in this question, we are required to determine the share premium of equity shares. When equity…
Q: The Ohana Corporation has 20,000 shares of common stock outstanding throughout 2021. In addition,…
A: Diluted EPS = Net Income+After Tax Cost of InterestCommon Shares Outstanding + Additional shares to…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: EPS stands for earnings per share which denotes the earnings which are available to distribute to…
Q: Compute diluted earnings per share for 2020 Diluted earnings per share_______ b) Compute diluted…
A: Interest on bonds = Face value x rate of interest = $1,800,000 x 6% = $108,000 Saving in interest…
Q: The equity section of the Georgie Inc. showed the following data on December 31, 2019: Share…
A: Journal entries: These are the entries prepared to record the business transactions in the books of…
Q: Salty Corporation reported 300,000 ordinary shares at the beginning of 2020. In the beginning of 2nd…
A: Weighted average no of shares is used for the calculation of EPS
Q: During 2021, Angel Corporation had 900,000 shares of common stock and 50,000 shares of 9% preferred…
A:
Q: Applewood Electronics ltd reported net earnings of $ 500 000 for the year ending December 31,2019.…
A: A. Computation of Earnings available for Equity (Common Stock) holders': Earnings available for…
Q: PKM maintained in circulation during 2020 the following values: 200,000 common shares ($ 2,000,000…
A: Earnings per share: Earnings per share is the ratio that compares the net profit to the outstanding…
Q: Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par…
A: Under the book value approach of recording conversion, the issuance of shares in place of bonds or…
Q: Francis Company has 16,800 shares of common stock outstanding at the beginning of 2019. Francis…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Queen Co. was formed on July 1, 2020. It was authorized to issue 300,000 shares of £40 par value…
A: Stockholder’s equity is a part of balance sheet which shows the total owner’s equity that is…
Q: At the beginning of 2019, Microbee Honey Corporation had 90,000 shares of $1.00 par value…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: On April 1, 2020, Giants Company issued 2,500 shares of its $10 par common stock and 5,000 shares of…
A:
Q: On January 1, 2020, Bonita Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each…
A: (a) Calculate Diluted Earnings Per Share for 2020.
Q: Blossom Corporation began business in 2020 by issuing 96000 shares of $5 par common stock for $8 per…
A: Answer: Common stock of $480000
Q: On January 1, 2021, Tonge Industries had outstanding 820,000 common shares ($1 par) that originally…
A: EPS is earnings per share it is calculated using the following formula : Basic EPS : Net income -…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Earnings per share is the ratio which is used to calculate what amount of profit before tax is…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 720 million common…
A: In order to determine the Earning per share, the total earning available to the equity shareholder's…
Q: On January 1, 2021, Tonge Industries had outstanding 460,000 common shares ($1 par) that originally…
A: Numerator / Denominator = Earning per share Basic $ 550,000 / 463,000 =…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Basic EPS = Net incomeWACSWACS=Weighted Average common shares = Common shares * time outstanding12=…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 700 million…
A: Basic earnings per share = ( Net income - Preferred dividend ) / weighted average number of shares
Q: Karen Company showed the following accounts on December 31, 2020. Bonds payable…
A: A bond refers to a debt instrument that is issued by the corporation in order to raise funds. The…
Q: 2. Gold Co. had 200,000 shares of common stock, 40,000 shares of convertible preferred stock, and…
A: Solution:- Given, Gold Co. had 200,000 shares of common stock 40,000 shares of convertible preferred…
Q: Francis Company has 24,000 shares of common stock outstanding at the begining of 2019. Francis…
A: 1. Calculation of weighted average number of outstanding shares as,
Q: On February 14, 2020 DAVID Co. issued 60,000 shares of its P100 par value ordinary shares and 40,000…
A: In case of composite consideration for proceeds from issuance of share capital, the respective…
Q: On January 1, 2020, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each…
A: Interest on bonds = Face value x rate of interest = $2,000,000 x 6% = $120,000 Saving in interest…
Q: A company has outstanding 366 $1,000 bonds, each convertible into 28 shares of $12 par value common…
A: Bonds payable = 366 * $ 1000 = $ 366000 Common Stock = 366 * 28 shares * $ 12 par value = $ 122976
Q: During 2020, Empresas ABC issued 4,000 preferred shares with a par value of $ 10 to $ 11 each. Each…
A: Compute total number of common shares converted from preferred share options as shown below:
Q: 1) On July 1, 2021, an interest payment date, $120,000 of ABC Co. bonds were converted into 2,000…
A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…
Q: On January 1, 2022, Shamrock SA issued 10-year, €1,870,000 face value, 6% bonds, at par. Each €1,000…
A: Earnings Per Share- Earnings per common share of the company refer to the portion of the company's…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 760 million…
A: Working Calculation of Income for common stock holders Amount (Million) Working Net…
Q: What is the weighted-average number of shares outstanding for 2020?
A: Stock Dividends and Stock splits:- When Stock Dividend or stock split occurs, the company needs to…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common…
A: Earning Per Share: Company net profits are divided by the number of common shares it has…
Q: On December 31, 2019, VENUS Company had 450,000 shares of ordinary shares outstanding. On September…
A: Basic EPS = net income/WACS WACS = weighted average common shares = common shares * time…
Q: ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5%…
A: Diluted Earnings Per share:- Diluted Earnings per share helps to calculate a firm’s earnings per…
Q: The information below pertains to Pierpont Corp. for 202 Net income, $1,200,000. Common Stock, $10…
A: The formula for calculating basic EPS involves dividing net income by the number of common shares…
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 660 million…
A: As evidence of their participation in a company, common shares are issued to business owners and…
Q: how much should be the diluted EPS to be presented by VENUS Company for the year ended December 31,…
A: The calculation of diluted EPS to be presented by VENUS Company for the year ended 31 December, 2020…
Q: ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5%…
A:
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: answer with calculations re as follows.
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Earnings Per Share - Businesses all over the world exist to make money and increase the wealth of…
Q: On January 1, 2020, XYZ Corporation had 250,000 ordinary shares of P2 par value outstanding. On…
A: Stock dividend is declared when the company wants to enhance its shareholders' wealth or to praise…
Q: The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,…
A: working note: income available to common share after conversion = (net income - preferred dividend…
ardent co has 5,000,000 ordinary shares of 25 cents each in issue,and also had an issue in 2019;
sh.1,000,000 of 14% convertible loan stock,convertible in three yearstime at the rate of two shares per shs.10 of stock.shs.2,000,000 of 10% convertible loan stock convertible in one years time at the rate of three shares per shs.5 odf stock.The total earnings in 20*4 were shs. 1,750,000.the rate of income tax is 35%.what is the basic EPS
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.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.
- Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.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.
- 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. 6.73Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Anoka 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?
- Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000On July 2, 2018, McGraw Corporation issued 500,000 of convertible bonds. Each 1,000 bond could be converted into 20 shares of the companys 5 par value stock. On July 3, 2020, when the bonds had an unamortized discount of 7,400 and the market value of the McGraw shares was 52 per share, all the bonds were converted into common stock. Required: 1. Prepare the journal entry to record the conversion of the bonds under (a) the book value method and (b) the market value method. 2. Compute the companys debt-to-equity ratio (total liabilities divided by total shareholders equity, as described in Chapter 6) under each alternative. Assume the companys other liabilities are 2 million and shareholders equity before the conversion is 3 million. 3. Assume the company uses IFRS and issued the bonds for 487,500 on July 2, 2018. On this date, it determined that the fair value of each bond was 930 and the fair value of the conversion option was 45 per bond. Prepare the journal entry to record the issuance of the bonds.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.
