Cracker Company had 2 million shares of common stock outstanding all through 2012. On April 1, 2013, an additional 100,000 shares were sold and issued. On September 30, 2013, Cracker declared a 2-for-1 stock split. Net income in 2013 and 2012 was $10 million and $8 million, respectively. In the 2013 comparative financial statements, EPS (rounded) would be reported as
Q: The previous year's balance sheet for Brown's Produce showed total common equity of…
A: Given information: Previous year’s common equity is $4,050,000 Net income during the year is…
Q: Fox Company made the following transactions in the common stock of NOP Company:…
A: As per IFRS 9, Financial instruments, any financial asset classified as trading security is measured…
Q: a. What amount of net income for 2013 will be reported in Gluco's 2014 annual report? b. Calculate…
A: Requirement a: Compute the EPS.
Q: Compute diluted earnings per share
A: Earnings per share is a financial measure that determines the residual earnings generated by each…
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: On January 1, 2016, Wade Corporation had 24,000 shares of common stock outstanding. On April 1, it…
A: Common shares are issued by the company to fulfil its capital requirements. The common shareholders…
Q: The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been…
A: The Number of shares issused at the end of 2015: 795 millionAs there is no transaction of…
Q: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: FRANCE, INC. began operations in January 2016, and reported the following results for each of its…
A: The book value per preferred share is calculated by dividing the call price or par valueplus the…
Q: Early in 2007, Parker Industries was formed with authorization to issue 100,000 shares of $20 par…
A:
Q: Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued…
A: No of shares issued = 60,000 shares Par value of shares issued = $2 Net Income = $250,000 Dividend =…
Q: Bedard Corporation reported net income of $300,000 in 2017 and had 200,000 shares of common stock…
A: Formula to calculate diluted earnings per share (DEPS): DEPS = Net income attributable to common…
Q: Tommen, Inc. has the following stock issued as of December 2015: 5% Preferred…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: As of 2017, Buttle Corp. has $10 par, 2% preferred stock, 13,000 shares outstanding, and $1 par…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: Extreme Company reported the following information about its stock on its December 31, 2016, balance…
A: Earnings Per share- It is the amount of earnings that's accrued by shareholders on each share in…
Q: ABC Corporation was organized on January 3, 2007, with authorized capital of 100,000 shares of P10…
A: January 7 :- Common stock = 40,000 x 10 = 400,000 Additional paid in capital =…
Q: Bertram Corporation had net income of $325,000 and paid dividends to common stockholders of $50,000…
A: Dividend payout ratio is calculated by dividing the total dividend paid by the net income earned…
Q: At December 31, 2016 and 2015, Gow Corp. had 100,000 shares of common stock and 10,000 shares of 5%,…
A: Preferred dividend = No. of shares x Par value per share xrate of dividend = 10,000 x $100 x 5% =…
Q: Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it…
A:
Q: What is 2013 basic earnings per share?
A: Basic EPS=(Net income - Preferred Dividend) / Weighted average common shares outstanding
Q: A company was organized in January 2016 and has 20,000 shares of $10 par value, 10%,…
A: Cumulative preferred stock means that the preferred stockholders shall get dividends in the next…
Q: On January 1 2018, ACI Ltd. had 5,80,000 shares of common stock outstanding . During 2018, it had…
A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…
Q: Kingbird Corporation had 270,000 shares of common stock outstanding on January 1, 2017. On May 1,…
A:
Q: At December 31, 2017, Reid Company had 600,000 sharesof common stock issued and outstanding, 400,000…
A: Income available to common stockholders.
Q: The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares…
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…
Q: Hound, Inc. has the following stock issued as of December 2015: 7% Preferred…
A: Preference shareholders are those shareholders who have preference in payment of dividends and…
Q: Corgi, Inc. has the following stock issued as of December 2015: 6% Preferred…
A: Cumulative preference shareholders means those shareholders which have preference in dividend and…
Q: In 2016, Western Transport Company entered into the treasury stock transactions described below. In…
A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…
Q: For the year ended 31 December 2009, Dim-Cool Utility Company had net income of $1,750,000. The…
A: For year ended 31.12.2009, Dim- Cool Utility company had net income = $1750000 Company had Common…
Q: On January 1, 2016, Kiper Corporation had 12,000 shares of common stock outstanding. Kiper…
A: Basic earnings per share is a ratio which helps to analyse that how much earnings a common…
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: On January 1, 2010, Deweese Corporation had $1,000,000 of common stock outstanding that was issued…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Dryer Company had 300,000 shares of common stock issued and outstanding at December 31, 2010. During…
A: Earnings per share is the amount of earnings available per common Stockholder. Formula: Earnings…
Q: On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common…
A: The dividend can be paid in cash form or shares form. The stock dividend less than 25% is issued at…
Q: Compute for the book value of preference shares on December 31, 2018 and book value of ordinary…
A: FRANCE, INC. began operations in January 2016, and reported the following results for each of its…
Q: During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the…
A: Answer: Option c.
Q: Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017,…
A: The weighted average number of share outstanding are calculated by multiplying the number of months…
Cracker Company had 2 million shares of common stock outstanding all through 2012. On April 1, 2013, an additional 100,000 shares were sold and issued. On September 30, 2013, Cracker declared a 2-for-1 stock split. Net income in 2013 and 2012 was $10 million and $8 million, respectively. In the 2013 comparative financial statements, EPS (rounded) would be reported as
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- 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.The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.For a recent year, OfficeMax and Staples are two companies competing in the retail office supply business. OfficeMax had a net income of 34,894,000, while Staples had a net loss of 210,706,000. OfficeMax had preferred stock of 28,726,000 with preferred dividends of 2,123,000. Staples had no preferred stock. The average outstanding common shares for each company were as follows: a. Determine the earnings per share for each company. Round to the nearest cent. b. Evaluate the relative profitability of the two companies.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)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). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
- 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?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.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?
