Ecker Company reports $1,825,000 of net income for 2017 and declares $255,500 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 290,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017?
Q: [The following information applies to the questions displayed below.] York's outstanding stock…
A: Cash dividends: The amount of cash provided by a corporation out of its distributable profits to…
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: 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: On January 1, 2017 a company had the following data: Issued 5,000 shares of $1.00 par value common…
A: Cumulative preference shares give the shareholder a right to receive dividends that is not received…
Q: Determine the dividend payout ratio for the common stock. Round the payout ratio to four decimal…
A: It has been given in the question that common shareholders have the right on the total income of…
Q: On January 1, 2016, Samuel Company had 21,000 shares of common stock outstanding and issued an…
A: Basic earning per share can be calculated by dividing net income after dividend by the weighted…
Q: Kalin Corporation had 2017 net income of $1,000,000. During 2017, Kalin paid a dividend of $2 per…
A: Earnings per share on common stock: It is a financial ratio. It is calculating by divides net…
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: DiCenta Corporation reported net income of $270,000 in 2017 and had 50,000 shares of common stock…
A: Formula to calculate diluted earnings per share; Diluted EPS = Net income / weighted average number…
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: 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: Burnell, Inc. has 5,000 shares of 4%, $50 par value, cumulative preferred stock and 100,000 shares…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: The records of Hoffman Company reflected the following balances in the stockholders' equity accounts…
A: Cumulative preferred stocks are those stocks that are paid prior-year dividends first, in case if…
Q: Divac Company has developed a statement of stockholders' equity for the year 2017 as follows:…
A: Formulas Used: Dividend payout ratio = [Cash dividend / Net Income]*100
Q: Cracker Company had 2 million shares of common stock outstanding all through 2012. On April 1, 2013,…
A: EARNING PER SHARE (EPS) : = (NET INCOME - PREFERRED DIVIDENDS) / AVERAGE NUMBER OF COMMON SHARES…
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: Culver Corporation reported net income of $682,000 in 2017 and had 217,000 shares of common stock…
A:
Q: At December 31, 2015 and 2016, Funk & Noble Corporation had outstanding 820 million shares of…
A: Preferrence Dividend = No. of share x Par value per share x rate of dividend = 2 million x $100 x…
Q: The records of Hoffman Company reflected the following balances in the stockholders’ equity accounts…
A: In case of cumulative preferred stock the arrears of dividend should also be paid
Q: On January 1, 2016, the Osgood Film Studios reported the following alphabetical list of…
A: Statement of stockholder's equity shows the balance left from the assets after paying off all the…
Q: The following information is provided for Slickers, INc. for year 2016: Preferred stock 7%, $50 par…
A: Non-cumulative preferred stocks that provides the shareholders a fixed dividend amount each year,…
Q: The records of Hoffman Company reflected the following balances in the stockholders' equity accounts…
A: A dividend is a payment made by a company to its stockholders. When a company makes profits or has a…
Q: Presented below are shareholders' equity accounts of Minzy Company: 2017 2016 Common stock, 22,000…
A:
Q: Kingbird Corporation had 270,000 shares of common stock outstanding on January 1, 2017. On May 1,…
A:
Q: Talaat Corporation had retained earnings at January 1, 2017, of $950,000. the Corporation had…
A: Journal in the book of original entry in which all the financial transactions of the business are…
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: Macaroon Inc. has net income for 2016 of $272,000. At January 1, 2016, the company had outstanding…
A: Working note: Computation of weighted average number of common shares outstanding: Weighted average…
Q: Crystal Arts, Inc., had earnings of $291,600 for 2016. The company had 30,000 shares of common stock…
A: Earning per share serves as an indicator of a company's profitability. And calculates as a company's…
Q: Basic Earnings per Share Monona Company reported net income of $29,975 for 2016. During all of 2016,…
A: Earnings per share in the business means how much net income has been attributable to each…
Q: Metlock Corporation had 2017 net income of $1,001,000. During 2017, Metlock paid a dividend of $2…
A: Earnings per share refer to the amount earned by each stockholder. This can be identified by…
Q: Ayayai Corp. has 4,200 shares of 8%, $100 par value preferred stock outstanding at December 31,…
A: Dividend: Dividend refers to the payment made to the investor out of the profits earned by the…
Q: At December 31, 2016, the records of Hoffman Company reflected the following balances in the…
A: Dividend is a sort of return given to the shareholders of an entity. It can either be in cash or in…
Q: The stockholders’ equity section of Warm Ways Inc.’s balance sheet at January 1, 2017, shows:…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
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: Divac Company has developed a statement of stockholders' equity for the year 2017 as follows:…
A: Here, Balance of Preferred Stock at the end of Dec,31 is $110,000 Paid in Preferred Capital is…
Q: Belltower, Inc. has net income for 2016 of $370,000. At January 1, 2016, the company had outstanding…
A: The earning per share is known as the value earned by shareholders as per their holdings. It can…
Q: Denfort corp had 4,000 shares of P7.00, P100 par preferred stock and 50,000 shares of common stock…
A: Earnings per share (EPS) was used to measure profitability. Earnings per share: =(Net income -…
Q: On January 1, 2016, Fascom had the following account balances in its shareholders' equity accounts.…
A: Stockholder's equity refers to the amount of assets which is left in the organization after paying…
Q: Divac Company has developed a statement of stockholders' equity for the year 2017 as follows:…
A: Dividend Payout Ratio = Total dividends/Net income
Q: Bonita Corporation had net income of $1.950,000 and paid dividends to common stockholders of…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: Stowe Company’s December 31, 2017, trial balance includes the following accounts: Investment in…
A: Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the…
Q: During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the…
A: Answer: Option c.
Q: 146. Oriole Company had net income of $2023000 and paid dividends to common stockholders of $316000…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: Talaat Corporation had retained earnings at January 1, 2017, of $950,000. the Corporation had…
A: Solution- Talaat Corporation…
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…
Q: At the beginning of 2017, Vincia Hill Industries had 25,000 shares of common stock issued and…
A: Diluted Earning Per Share - It is calculate company's earning per share if all current available…
Q: Bianchi Company reported these figures for 2018 and 2017: 2018 2017 Income Statement-partial: $…
A: Earnings per share is a calculation which is crucial to investing and analysis of any company. It is…
Ecker Company reports $1,825,000 of net income for 2017 and declares $255,500 of cash dividends on its
1. What amount of net income is available to common stockholders for 2017?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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)
- 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.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.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.
- 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.Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
- 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.Given the following year-end information for Somerset Corporation, compute its basic earnings per share. Net income, 13,000 Preferred dividends declared, 4,000 Weighted average common shares for the year, 4,500Anoka 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?
