During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)? A. $0.89. B. $0.91. C. $1.00. D. $1.08
Q: company has annual sales of $120,000, average accounts payable of $35,000, and average accounts…
A: Days of sales outstanding is calculated by dividing number of days in a year by accounts receivable…
Q: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses.…
A: Revenue: Revenue, often referred to as sales or income, is the total amount of money earned by a…
Q: Mr. and Mrs. Fabrizio, a retired couple, decided to open a family restaurant. During March and…
A: Prepaid rent is an advance payment on a lease of property. If any one use the property for your…
Q: FRANKLIN COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,000 units…
A: The contribution margin is calculated as the difference between sales and variable costs. The…
Q: On November 1, 2023, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: A manufacturing company reports the following for the period: Inventories Raw materials Work in…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: The following information relates to Coronado Real Estate Agency. Oct. 1 2 3 6 27 30 James Coronado…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: Exercise 2-50 and 2-51 (Algo) (LO 2-6) Skip to question [The following information applies to the…
A: Product cost is the total cost incurred in the manufacturing of product during the period. It is the…
Q: me the following budgeted information for a merchandising company: Budgeted sales (all on credit)…
A: Cash budget is used in forecasting to determine supplier payment, and receipts from customers which…
Q: You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the…
A: When a firm is appointed as an auditor to a company like Johnson Plc, several professional and…
Q: Required information [The following information applies to the questions displayed below.) 11211…
A: Trading securities or securities held fir sale means the securities which are intends to sale within…
Q: es Below are the account balances for Cowboy Law Firm at the end of December. Balances $ 5,400 2,200…
A: Income statement is a financial statement that shows the profitability, total revenue and total…
Q: Use the following information for the Quick Studies below. (Algo) [The following information applies…
A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…
Q: The trial balance before adjustment of Oriole Inc. shows the following balances. Accounts Receivable…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: Jordan Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The total…
Q: Flying Tomato sells a snowboard, WhiteOut, that is popular with snowboard enthusiasts. Presented…
A: Gross profit of the company is the amount earned after deducting all the costs related to…
Q: Complete the following partial flexible budget performance report, and indicate whether each…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: At August 31, Cullumber Company has a cash balance per books of $9,700 and the following additional…
A: Adjusted cash balance is the amount of cash that is determined after adjusting the differences…
Q: Terminal Industries (TI) produces a product using three departments: Mixing. Processing, and…
A: Process costing is one of the cost accounting strategies used when a product goes through multiple…
Q: Clothing returned $800 to Williams Fashion for S Clothing paid the balance due, taking advantage
A: In the Books of William Fashion Date Account Titles Debit Credit 01-OctAccounts Receivable $…
Q: At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three…
A: Direct labor cost is the amount of wages incurred directly in the manufacturing of product during…
Q: Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $200,000 in…
A: Corporation is one of the form of business organisation, where stock or shares are being issued to…
Q: Knowledge Check Tri Golf Course purchased a golf cart at a cash price of $14,000. Related cash…
A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…
Q: Rayya Company purchases a machine for $151,200 on January 1, 2021. Straight-line depreciation is…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated…
A: Lease accounting is a financial reporting process where a company records and discloses the…
Q: Mitch, who is single
A: Note 1. Line 2a: Standard deduction or deductible taxes from Schedule A: In calculating the AMT, you…
Q: Following is a partially completed balance sheet for Epsico Incorporated at December 31, 2022,…
A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…
Q: Use the information below to answer the two questions that follow. A company prepares its master…
A: Income Statement: It is a part of financial statement of a company in which revenue and expenses are…
Q: David Corporation had income before income taxes of $185,200 in 2025. David's current income tax…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: Swifty Ltd. had the following 2023 income statement data: Revenues $113,000 Expenses 1/1/23 In 2023,…
A: Lets understand the basics.Cash flow from operating activities is a part of cash flow statement.…
Q: ZZ Company employs a periodic inventory system and sells its inventory to customers for $39 per…
A: The weighted average method is an inventory valuation method in which inventory is valued at average…
Q: On January 1, 2022, Don Buchanan purchases a business that he will carry on as a sole proprietor.…
A: Goodwill represents the intangible value associated with a business, including factors like its…
Q: 7. 4. Campus Stop is considering a contract to sell merchandise to a campus organization for…
A: Answer:- Gross profit meaning:- It is the initial profit shown on the income statement of the…
Q: Question 21 Cost of goods sold is often the largest expense on a merchandising company income…
A: Cost of Goods Sold: It implies the direct expense or cost that is incurred in the production of…
Q: a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual…
A: Face Value of Bonds = $27,900,000Maturity in years = 5Coupon Rate = 5%Interest is paid =…
Q: On December 31, 2024, capital balances of the partners in Jennifer Charters are C. David $36,000; M.…
A: A partnership is a form of business where two or more individuals make a partnership agreement to…
Q: Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count…
A: The budget is prepared to estimate the requirements for the period. The purchase budget is prepared…
Q: Sales revenue Cost of goods sold Salaries and wages expense Depreciation expense Dividend revenue…
A: The single-step income statement include the revenues at one place and all the expenses are the one…
Q: The following table tracks the main components of working capital over the life of a four-year…
A: The question is based on the concept of Financial Accounting.Net working capital is the difference…
Q: Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the…
A: A difference between an amount forecasted and an actual amount is known as an accounting variance.…
Q: Pina, Inc. began work on a $6,759,000 contract in 2020 to construct an office building. During 2020,…
A: Contract costing is a specialized accounting approach used by organizations to track and manage the…
Q: On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at…
A: Depreciation is a way of allocating the cost of a physical item over its useful life. Depreciation…
Q: Determine Cash Flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make…
A: Cash flows in the business means incoming and outgoing of cash. Incoming of cash is known as cash…
Q: Square feet Overhead $80,000 $314,000 3,000 Machine hours Support Departments General Power Factory…
A: In accounting and cost accounting, the term "overheads" refers to a cost allocation technique that…
Q: Yellow Corporation,
A: Examples of section 1231 properties include buildings, machinery, land, timber, and other…
Q: Seymore named his wife
A: Gross income includes your wages, interest, dividends, capital gains, business income, retirement…
Q: Problem 2-26 (Algo) Complete the balance sheet using cash flow data LO 2-2, 2-3, 2-5, 2-6 Following…
A: A balance sheet is essentially a financial snapshot of a corporation at a certain point in time.…
Q: Complete this question by entering your answers in the tabs below. Required A Required B Required C…
A: T-account :— It is the general ledger account which is prepared to post journal entries. It is the…
During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)?
A. $0.89. B. $0.91. C. $1.00. D. $1.08
Step by step
Solved in 3 steps
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.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?Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
- Below is select information from two, independent companies. Additional information includes: On January 1, Company A issued a 5-year $1,500,000 bond with at 6% stated rate. Interest is paid semiannually and the bond was sold at 105.5055 to yield a market rate of 4.75%. On January 1, Company B sold $1,500,000 of common stock and paid dividends of $75,000. A. Prepare an income statement for each company (ignore taxes) B. Explain why the net income amounts are different, paying particular attention to the operational performance and financing performance of each company. (Hint: it may be helpful for you to create an amortization table).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 37 5. The bonds are classified as a held-to-maturity 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 issue d 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 (I). 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 h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [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 in come statement for the year ended December 31, 201 6, 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, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.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.
- 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?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.Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock. It is also authorized to issue 750,000 shares of $6 par value common stock. It has issued 50,000 of the common shares and 1,000 of the cumulative preferred shares. The corporation has never declared a dividend and the preferred shares are one years in arrears. Aggregate Mining has the following transactions this year: Journalize these transactions. For the stock split, show the calculation for how many shares are outstanding after the split and the par value per share after the split